Are CPF contributions payable on benefit in kind?

Modified on Tue, 31 Oct 2023 at 03:13 PM

CPF contributions are not payable on benefit given to your employee in kind, e.g. a commemorative watch or payment made directly by you to a service provider.

Such benefit in kind where no cash payment to your employee is involved would not be considered as wages because only remuneration in money granted in respect of employment attracts CPF contributions.

Source: CPF

Steps to record BIK

  1. Create a pay item if it's not already created.
    • Does not apply to CPF
    • IR8A code D9 - Value of Benefit-in-Kind and the appropriate Appendix 8A code
  2. Use an ad-hoc payroll to record the BIK.
  3. Do not run together with monthly payroll or any other payments.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article