CPF is not required on the cash payment given to employees for working in different location (not the normal place of work), for defraying their transport, meal, lodging or utility expenses if:
- The payment is provided in the form of reimbursement based on actual expenditure of which proof must be shown;
- The reimbursement does not increase the employees’ wages; and
- The employees are only entitled to such reimbursements based on their continued attendance at employment and work in Singapore of which transport, meal, lodging and utility expenses would be incurred due to the COVID-19 lockdown, Work From Home, Leave Of Absence or relocation to other site (not normal place of work).
CPF is required on allowance given to employees, i.e., cash payment that is given not in the form of reimbursement based on actual expenditure, as it increases the employees' wages.