Are CPF contributions payable on Additional Wages payable to ex-employees after they have left employment?
From 1 January 2024, whether CPF contributions are payable would depend on the citizenship of an ex-employee as at the last date of employment and Additional Wages (AW) payable date.
This treatment removes the obligation for employers to make CPF contributions on AW payable to a non-Singapore Citizen/Singapore Permanent Resident (SC/SPR) ex-employee who subsequently became a SC/SPR after leaving their employment.
A. For AW that is payable on or after 1 January 2024
- CPF contribution is payable for the AW if the employee is a SC/SPR on both the last date of employment and 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 and/or the date AW is payable.
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.
B. 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.
This information is sourced from CPF
Related questions
My foreign employee has obtained his Singapore Permanent Resident status. How do I compute CPF contributions on his Ordinary and Additional Wages for the month?
My employee has renounced his Singapore Citizenship/Singapore Permanent Resident status in a month. Do I need to pay his CPF for the entire month?
Are CPF contributions payable on cash benefits given to my employee when he leaves his employment?
Are CPF contributions required on Additional Wages (AW) that are payable after my employee has died?
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