As an employer, you’ll need to pay CPF contributions on wages payable to your employees.

Wages are defined as remuneration in money, including any bonus that is due or granted to a person in respect of his employment.

Here are some examples of pay items that are considered wages:

  • Basic Pay

  • OT Payment

  • Bonus

  • Allowance

  • Commission

  • Incentive Allowance (cash payment)

Below are some examples of payments that are not considered wages:

  • Termination Benefits (i.e. retrenchment benefit)

  • Benefits In Kind (i.e. non-cash benefit or gift given to the employee)

  • Reimbursements (i.e. transportation claims)

For more other examples that attract CPF contributions, you can refer to this CPF guide.

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