From 1 January 2024, whether CPF contributions are payable on Additional Wages (AW) payable to ex-employees would depend on the citizenship of the ex-employee as at the last date of employment and AW payable date as follows:
- CPF contribution is payable for the AW if the employee is a Singapore Citizen/Singapore Permanent Resident (SC/SPR) on both (i) the last date of employment and (ii) the date AW is payable.
- CPF contribution is not payable for the AW if the employee is not a SC/SPR on the last date of employment or the date AW is payable.
This treatment removes the obligation for employers to make CPF contributions on AW payable to a non-SC/SPR ex-employee who subsequently became a SC/SPR after leaving their employment.
Example
An employee’s last date of employment with Company X was 30 June 2023. An AW was payable to him by Company X on 1 January 2024.
- If the employee is a SC/SPR on both 30 June 2023 and 1 January 2024, CPF contribution is payable on the AW. The contribution month and year for this AW is January 2024.
- If the employee is not a SC/SPR on either 30 June 2023 or 1 January 2024 or on both dates, CPF contribution is not payable on AW.
For AW that is payable before 1 January 2024
- CPF contribution is payable for the AW if the employee is a SC/SPR on the date AW is payable.
- CPF contribution is not payable for the AW if the employee is not a SC/SPR as at AW payable date.
Note: Last date of employment is not relevant for AW that is payable before 1 January 2024.
Example
An employee’s last date of employment with Company X was 30 June 2023. An AW was payable to him by Company X on 28 December 2023.
- If the employee is a SC/SPR on 28 December 2023, CPF contribution is payable on the AW. The contribution month and year for this AW is December 2023.
- If the employee is not a SC/SPR on 28 December 2023, CPF contribution is not payable on the AW.
