25 April 2022
Are Flexible Benefits subjected to CPF?
Flexible benefits, also known as flexi benefits, are increasingly common as they can help employers be more competitive in recruitment and retention of talents. Flexible benefits allow employees to choose their preferred choice of benefits from a pool of options set by the employer. Each employee can pick and choose from to create a custom employee benefit plan that fits their lifestyle and individual needs. The pool of options may include health screening, health insurance, gym memberships, vision care and wellness programs.
If the payments are made to reimburse employees as part of flexible benefits, CPF contributions are generally payable.
Here is a list of common flexible benefits with the current guidelines on whether CPF contribution is payable:
| |
| Flexible Benefits |
CPF Payable |
| Courses for work purpose, i.e. required in the course of official duties |
No |
Dental treatments (local and overseas) by registered dentist for employee and employee’s dependents (spouse and child)
Examples: Scaling and polishing |
No |
| Donations to charity |
No |
| Health screening deemed necessary by registered doctors and/or TCM practitioners as part of treating medical illnesses for employee and dependents (spouse and child) |
No |
| Health supplement deemed necessary by registered doctors and/or TCM practitioners as part of treating medical illnesses for employee and dependents (spouse and child |
No |
| Immunization deemed necessary by registered doctors and/or TCM practitioners as part of treating medical illnesses for employee and dependents (spouse and child) |
No |
| Medical treatments (local and overseas) by registered doctors and/or TCM practitioners for employee and dependents (spouse and child) |
No |
| Car-related expenses |
Yes |
| Dental expenses that are not dental treatments, e.g. toothbrushes, toothpaste, cosmetic reasons, etc |
Yes |
| Expenses incurred by employee’s parents, siblings, grandparents and relatives etc |
Yes |
| Fitness centre/Gym membership fee |
Yes |
| Health screening where employee and dependants (spouse and child) go on their own accord, i.e. not deemed necessary by registered doctors and/or TCM practitioners as part of treating medical illnesses |
Yes |
| Health supplement where employee and dependants (spouse and child) buy on their own accord, i.e. not deemed necessary by registered doctors and/or TCM practitioners as part of treating medical illnesses |
Yes |
| Holiday expenses incurred by employee and employee’s dependants (spouse and child) |
Yes |
| Local attraction entrance fee |
Yes |
| Maid-related expenses |
Yes |
Optical/Vision care expenses
Examples: Lasik, Spectacles, Sunglasses, Contact lenses and Contact lens solution |
Yes |
| Personal income tax |
Yes |
Sports activities/equipment
Examples: Registration fee for marathons and Booking fee for badminton courts |
Yes |
Wellness expenses
Examples: Facial, Foot reflexology, Haircut, Massage, Spa, Yoga class, Dance class |
Yes |
|
For more details on what other types of Flexible Benefits are CPF payable, you can refer to CPF:
List of Employee/Flexible Benefits
For more details on what reimbursements are considered "wages" in the CPF Act, you can refer to CPF:
Are CPF contributions payable on reimbursements of employee/flexible benefits?
For more details on whether the Flexible Benefits are taxable for employees, you can refer to our previous article:
Benefits-in-kind