CPF contributions are payable on bonus given to your employee by a third party, e.g. your service partner, if the bonus is a reward for work done in respect of your employee’s employment.

Example

Company A is a marketing company partnering various banks to help increase its sales for personal loans and credit cards. Upon achieving specific monthly targets, the banks will give bonuses to the employees of Company A as a reward. Company A receives these bonuses from the banks and disburses to its employees.

Company A is required to pay CPF contributions on the bonuses given to its employees as the cash payments are wages given in respect of their employment.