CPF contributions are not payable on reimbursement of relocation expenses (e.g. air tickets, baggage charges, shipping cost, taxi fare from airport and packing charges) as they are given in respect of overseas employment.

CPF contributions are not payable on reimbursement of relocation expenses incurred by your employee to relocate from overseas to work in Singapore if the following conditions are fulfilled:

a) your employee had been working for you in Singapore;

b) your employee was required by you to relocate overseas for official purposes; and

c) your employee is now required by you (i.e. same employer) to return to Singapore to continue with employment in Singapore.

Otherwise, you will still need to pay CPF contributions on any reimbursement of relocation expenses.

CPF contributions are payable on the reimbursement of relocation expenses if your employee is originally based overseas (e.g. previously he was staying overseas, or working for another employer overseas) but relocates to Singapore to begin his new Singapore employment with you. The reimbursement of relocation expenses in such a case is considered as employment benefit which increases your employee’s wages.