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Are Transport or Phone Allowance subject to Ordinary or Additional CPF
Author: Bruno Reference Number: AA-08118 Views: 79 Created: 2018-04-23 10:34 Last Updated: 2018-04-23 10:34 0 Rating/ Voters

Are Transport or Phone Allowance subject to Ordinary or Additional CPF

1) Whether payment is subject to Ordinary or Additional is according to below CPF conditions:

a) Ordinary wages

 Wages due and payable to employee in that month

 Payable before the due date for payment of CPF contribution for that month (i.e. before 14th of the following month).

b) Additional wages

 Wages that are not granted wholly and exclusively for the month. In other words, the payment is not for work done entirely and only for the month e.g. bonuses, leave pay etc.

c) For backpay of increment

 The EPE default setting is subj to Additional, but this depends on when employee receives the notification for salary increment from employer.

 If for e.g. employee has increment in Jan, but management decides to make a salary adjustment backpay only in March.

*Backpay of salary will be subject to Additional CPF*

 If error due to omission or administrative delay. Employee receives letter for salary adjustment in Jan 2016, but payroll clerk had paid amount wrongly for 3 months. In April 2016, the payroll clerk makes salary adjustment for 3 months.

*Backpay of salary will be subject to Ordinary *

(NOTE: If wages have reached salary ceiling of 6000, salary adjustment need not compute any CPF amount).

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