The Central Provident Fund Board provided an update to the treatment of cash reimbursements made under employee / flexible benefit plans that will be effective 1 January 2020.
Flexible benefit plans are commonly used by employers to allow employees to claim reimbursement for a variety of benefits. Beginning 2020, cash reimbursements for dental treatment provided to an employee’s spouse and child will no longer attract central provident fund contributions. However, cash reimbursements to an employee for holiday-related expenses will attract central provident fund liability, regardless of whether such reimbursements are attributable to the employee or his / her immediate family member.
Read a November 2019 report [PDF 234 KB] prepared by the KPMG member firm in Singapore
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