What elements are subject to CPF contributions?

Learn about all the elements subject to CPF contributions in this article.

Employers are obligated to make CPF contributions on behalf of the employees, which are computed based on total wages payable. Wages are defined as remuneration in money, including any bonus that is due or granted to a person in respect of their employment. Wages include:

  • Basic wage – salary payable to an employee for completion of work.
  • Overtime pay – payment for working beyond normal working hours.
  • Bonus – supplementary payment, such as performance bonus.
  • Allowance – for example, meal allowance and transport allowance.
  • Commission – payment based on achievements, for example sales commission.
  • Cash incentive – payment to encourage development or stimulate greater output, for example productivity incentive.

Employees may also receive payments that do not fall under the category of wages, for example:

  • Termination benefit – compensation provided in case of contract termination, such as retrenchment benefit.
  • Reimbursement – compensation for official purposes which amount must not exceed the expenditure incurred, such as purchase of office stationery.
  • Benefit in kind – non-cash benefit or gift given to the employee, such as a commemorative watch.

Refer to this CPF guide for more examples.