§ 10B — Excess provident fund contributions, etc., from employer deemed to be income

10B.—(1) Despite section 13(1)(j), where in any year, contributions have been made by an employer in respect of an employee under section 7 of the Central Provident Fund Act 1953 —(a)

any part of the employer’s contributions, in respect of ordinary or additional wages paid to the employee in that year, which is not obligatory under that Act; or

(b)

the employer’s contributions in respect of that part of the additional wages which exceeds the specified amount paid to the employee in that year,

are deemed to be income accruing to the employee for the year in which the wages are paid.

(2) Despite subsection (1)(a), where in any year, contributions obligatory by reason of a contract of employment are made by any relevant employer to the Central Provident Fund in respect of overseas ordinary wages or overseas additional wages paid to an employee in that year, that part of such contributions up to the relevant amount is not deemed to be income accruing to the employee.

(3) Subsection (2) does not apply to contributions made by an employer in any year from 1 January 1999 to the Central Provident Fund in respect of an employee who holds a professional visit pass or a work pass in that year.

(4) [Deleted by Act 32 of 2019]

(5) [Deleted by Act 32 of 2019]

(5A) Despite subsection (1)(a) but subject to subsection (6), where a contribution is made by an employer in 2013 or any subsequent year to the medisave account of the employer’s employee maintained under the Central Provident Fund Act 1953, the contribution up to the maximum amount mentioned in subsection (5B) is not deemed to be income accruing to the employee.

(5B) The maximum amount is —(a)

$1,500 per year (for contributions made before 2018); or

(b)

$2,730 per year (for contributions made in 2018 and in each subsequent year),

less any previous contribution that is made to the medisave account in that year by the employer in the employer’s capacity as a person of a prescribed description in section 13(1)(jd) (if applicable), and that is exempt from tax under that provision.

[39/2017]

(6) Subsection (5A) does not apply to contributions made by an employer in any year from 1 January 1999 to the Central Provident Fund in respect of an employee who holds a professional visit pass or a work pass in that year.[32/2019]

(7) [Deleted by Act 7 of 2007]

(8) Where in any year contributions under section 7 of the Central Provident Fund Act 1953 have been made in respect of an employee employed by 2 or more employers and the employers are related to each other, subsection (1)(b) applies as if all the ordinary and additional wages from those related employers and the contributions on those wages were paid by one employer.

(9) For the purposes of subsection (8), one employer is deemed to be related to another where one of them, directly or indirectly, has the ability to control the other or where both of them, directly or indirectly, are under the control of a common person.

(10) Subsections (1) to (9) apply, with the necessary modifications, to contributions made by an employer to a designated pension or provident fund as if those contributions were the employer’s contributions to the Central Provident Fund.

(11) Where in any year contributions have been made by an employer in respect of an employee to any pension or provident fund constituted outside Singapore, the whole of the contributions made to that pension or provident fund is deemed to be income accruing to the employee for the year in which the contributions are paid.

(12) In this section —“additional wages” has the meaning given by the Central Provident Fund Act 1953;

“designated pension or provident fund” means an approved pension or provident fund designated by the Minister under section 39(8);

“employer’s contributions” means the contributions made by any employer under section 7(1) of the Central Provident Fund Act 1953 less the amount of contributions recoverable by the employer from the wages of an employee under section 7(2) of that Act;

“ordinary wages” has the same meaning as “ordinary wages for the month” in the Central Provident Fund Act 1953;

“overseas additional wages” means additional wages paid in respect of the performance of any duty for any period outside Singapore;

“overseas ordinary wages” means ordinary wages paid in respect of the performance of any duty for any period outside Singapore;

“overseas total wages”, in relation to any year, means the total of the overseas ordinary wages and overseas additional wages in that year received by an employee;

“relevant amount” means the amount of contributions which would have been required to be made by the relevant employer had such contributions been obligatory under the Central Provident Fund Act 1953 in respect of —(a)

the overseas total wages paid to an employee in any year less the aggregate in that year of such part of the overseas ordinary wages that are paid to the employee in every month in that year which exceeds —(i)

for a month before September 2011 — $4,500;

(ii)

for the month of September 2011 or any subsequent month before January 2016 — $5,000;

(iii)

for the month of January 2016 or any subsequent month before September 2023 — $6,000;

(iv)

for the month of September 2023 or any subsequent month before January 2024 — $6,300;

(v)

for the month of January 2024 or any subsequent month before January 2025 — $6,800;

(vi)

for the month of January 2025 or any subsequent month before January 2026 — $7,400; or

(vii)

for the month of January 2026 or any subsequent month — $8,000; or[Act 30 of 2023 wef 01/09/2023]

(b)

$79,333 (in relation to the year 2011), $85,000 (in relation to the years 2012, 2013, 2014 and 2015) or $102,000 (in relation to the year 2016 and every subsequent year),

whichever is less;

“relevant employer” means any company incorporated or registered under the Companies Act 1967 or any person registered under the Business Names Registration Act 2014;

“specified amount” means —(a)

[Deleted by Act 2 of 2016]

(b)

[Deleted by Act 33 of 2022 wef 04/11/2022]

(c)

in relation to the year 2011, the difference between $79,333 and the total ordinary wages paid to the employee in that year; and for this purpose, any amount of ordinary wages paid to the employee for any month in the year in excess of $4,500 (being a month before September 2011) or $5,000 (being the month of September 2011 or any subsequent month) is disregarded;

(d)

in relation to the year 2012, 2013, 2014 or 2015, the difference between $85,000 and the total ordinary wages paid to the employee in that year; and for this purpose, any amount of ordinary wages paid to the employee for any month in the year in excess of $5,000 is disregarded; and

(e)

in relation to the year 2016 and every subsequent year, the difference between $102,000 and the total ordinary wages paid to the employee in that year; and for this purpose, the amount of ordinary wages mentioned in each of the following sub-paragraphs that is paid to the employee for every month specified in that sub-paragraph is disregarded: (i)

for the month of January 2016 or any subsequent month before September 2023 — any amount in excess of $6,000;

(ii)

for the month of September 2023 or any subsequent month before January 2024 — any amount in excess of $6,300;

(iii)

for the month of January 2024 or any subsequent month before January 2025 — any amount in excess of $6,800;

(iv)

for the month of January 2025 or any subsequent month before January 2026 — any amount in excess of $7,400;

(v)

for the month of January 2026 or any subsequent month — any amount in excess of $8,000;[Act 30 of 2023 wef 01/09/2023]

“total wages”, in relation to any year, means the total of the ordinary and additional wages in that year received by an employee;

“year” means any year from 1 January to 31 December.[10C

[29/2014; 2/2016]

[Act 30 of 2024 wef 01/01/2025]

—(1) Despite section 13(1)(j), where in any year, contributions have been made by an employer in respect of an employee under section 7 of the Central Provident Fund Act 1953 —(a)

any part of the employer’s contributions, in respect of ordinary or additional wages paid to the employee in that year, which is not obligatory under that Act; or

(b)

the employer’s contributions in respect of that part of the additional wages which exceeds the specified amount paid to the employee in that year,

are deemed to be income accruing to the employee for the year in which the wages are paid.

(2) Despite subsection (1)(a), where in any year, contributions obligatory by reason of a contract of employment are made by any relevant employer to the Central Provident Fund in respect of overseas ordinary wages or overseas additional wages paid to an employee in that year, that part of such contributions up to the relevant amount is not deemed to be income accruing to the employee.

(3) Subsection (2) does not apply to contributions made by an employer in any year from 1 January 1999 to the Central Provident Fund in respect of an employee who holds a professional visit pass or a work pass in that year.

(4) [Deleted by Act 32 of 2019]

(5) [Deleted by Act 32 of 2019]

(5A) Despite subsection (1)(a) but subject to subsection (6), where a contribution is made by an employer in 2013 or any subsequent year to the medisave account of the employer’s employee maintained under the Central Provident Fund Act 1953, the contribution up to the maximum amount mentioned in subsection (5B) is not deemed to be income accruing to the employee.

(5B) The maximum amount is —(a)

$1,500 per year (for contributions made before 2018); or

(b)

$2,730 per year (for contributions made in 2018 and in each subsequent year),

less any previous contribution that is made to the medisave account in that year by the employer in the employer’s capacity as a person of a prescribed description in section 13(1)(jd) (if applicable), and that is exempt from tax under that provision.

[39/2017]

(6) Subsection (5A) does not apply to contributions made by an employer in any year from 1 January 1999 to the Central Provident Fund in respect of an employee who holds a professional visit pass or a work pass in that year.[32/2019]

(7) [Deleted by Act 7 of 2007]

(8) Where in any year contributions under section 7 of the Central Provident Fund Act 1953 have been made in respect of an employee employed by 2 or more employers and the employers are related to each other, subsection (1)(b) applies as if all the ordinary and additional wages from those related employers and the contributions on those wages were paid by one employer.

(9) For the purposes of subsection (8), one employer is deemed to be related to another where one of them, directly or indirectly, has the ability to control the other or where both of them, directly or indirectly, are under the control of a common person.

(10) Subsections (1) to (9) apply, with the necessary modifications, to contributions made by an employer to a designated pension or provident fund as if those contributions were the employer’s contributions to the Central Provident Fund.

(11) Where in any year contributions have been made by an employer in respect of an employee to any pension or provident fund constituted outside Singapore, the whole of the contributions made to that pension or provident fund is deemed to be income accruing to the employee for the year in which the contributions are paid.

(12) In this section —“additional wages” has the meaning given by the Central Provident Fund Act 1953;

“designated pension or provident fund” means an approved pension or provident fund designated by the Minister under section 39(8);

“employer’s contributions” means the contributions made by any employer under section 7(1) of the Central Provident Fund Act 1953 less the amount of contributions recoverable by the employer from the wages of an employee under section 7(2) of that Act;

“ordinary wages” has the same meaning as “ordinary wages for the month” in the Central Provident Fund Act 1953;

“overseas additional wages” means additional wages paid in respect of the performance of any duty for any period outside Singapore;

“overseas ordinary wages” means ordinary wages paid in respect of the performance of any duty for any period outside Singapore;

“overseas total wages”, in relation to any year, means the total of the overseas ordinary wages and overseas additional wages in that year received by an employee;

“relevant amount” means the amount of contributions which would have been required to be made by the relevant employer had such contributions been obligatory under the Central Provident Fund Act 1953 in respect of —(a)

the overseas total wages paid to an employee in any year less the aggregate in that year of such part of the overseas ordinary wages that are paid to the employee in every month in that year which exceeds —(i)

for a month before September 2011 — $4,500;

(ii)

for the month of September 2011 or any subsequent month before January 2016 — $5,000;

(iii)

for the month of January 2016 or any subsequent month before September 2023 — $6,000;

(iv)

for the month of September 2023 or any subsequent month before January 2024 — $6,300;

(v)

for the month of January 2024 or any subsequent month before January 2025 — $6,800;

(vi)

for the month of January 2025 or any subsequent month before January 2026 — $7,400; or

(vii)

for the month of January 2026 or any subsequent month — $8,000; or[Act 30 of 2023 wef 01/09/2023]

(b)

$79,333 (in relation to the year 2011), $85,000 (in relation to the years 2012, 2013, 2014 and 2015) or $102,000 (in relation to the year 2016 and every subsequent year),

whichever is less;

“relevant employer” means any company incorporated or registered under the Companies Act 1967 or any person registered under the Business Names Registration Act 2014;

“specified amount” means —(a)

[Deleted by Act 2 of 2016]

(b)

[Deleted by Act 33 of 2022 wef 04/11/2022]

(c)

in relation to the year 2011, the difference between $79,333 and the total ordinary wages paid to the employee in that year; and for this purpose, any amount of ordinary wages paid to the employee for any month in the year in excess of $4,500 (being a month before September 2011) or $5,000 (being the month of September 2011 or any subsequent month) is disregarded;

(d)

in relation to the year 2012, 2013, 2014 or 2015, the difference between $85,000 and the total ordinary wages paid to the employee in that year; and for this purpose, any amount of ordinary wages paid to the employee for any month in the year in excess of $5,000 is disregarded; and

(e)

in relation to the year 2016 and every subsequent year, the difference between $102,000 and the total ordinary wages paid to the employee in that year; and for this purpose, the amount of ordinary wages mentioned in each of the following sub-paragraphs that is paid to the employee for every month specified in that sub-paragraph is disregarded: (i)

for the month of January 2016 or any subsequent month before September 2023 — any amount in excess of $6,000;

(ii)

for the month of September 2023 or any subsequent month before January 2024 — any amount in excess of $6,300;

(iii)

for the month of January 2024 or any subsequent month before January 2025 — any amount in excess of $6,800;

(iv)

for the month of January 2025 or any subsequent month before January 2026 — any amount in excess of $7,400;

(v)

for the month of January 2026 or any subsequent month — any amount in excess of $8,000;[Act 30 of 2023 wef 01/09/2023]

“total wages”, in relation to any year, means the total of the ordinary and additional wages in that year received by an employee;

“year” means any year from 1 January to 31 December.[10C

[29/2014; 2/2016]

[Act 30 of 2024 wef 01/01/2025]