If your employee is required by authorities and/or medical practitioners to take a COVID-19 test, CPF contributions are not payable on the reimbursement of the fees incurred. The amount reimbursed must not exceed the actual expenditure.

CPF contributions are also not payable if your employee has to take the COVID-19 test due to work requirements, e.g. pre-departure test before your employee’s overseas business trip. This is because the cash payment is incurred on behalf of you for official purpose. Likewise, for this reimbursement, the amount reimbursed must not exceed the actual expenditure.

However, if the COVID-19 test is done due to personal reasons (e.g. personal overseas trip), CPF contributions are payable for such reimbursement as it is your employee’s personal expenses.