25 April 2018
The Ministry of Education has clarified that although Hwa Chong Institution teachers can use a professional development fund set up by their school to pay for their parking charges, such in-kind benefits are still part of their remuneration package and are therefore subject to income tax.
Unlike government and government-aided schools, which will deduct parking charges directly from teachers’ salaries, independent schools like HCI can decide how such fees are collected.
HCI has agreed to deduct parking fees from the teachers’ individual accounts in a fund that HCI has established for their professional development. The fund is part of their flexi-benefit accounts in their remuneration package.
HCI hires most of its own teachers instead of getting them from MOE. However, all its teachers will have to pay for parking as their salaries are paid for with MOE funds.