Singapore CPF Additional Wage (AW) Limit FAQ

Last Updated: July 8, 2025

Overview:

This article aims to answer the frequently asked questions pertaining to Singapore CPF Additional Wage (AW) Limit

1. What is Additional Wage (AW)?

• Additional Wage (AW) refers to wages that are not fixed and are typically paid on a one-time or in an irregular basis. 
• This includes type of income such as bonuses, 13th month pay, commissions, leave pay and other forms of variable payments which are not considered under Ordinary wage (OW).

2. What is the AW Ceiling?

• The AW ceiling is the maximum amount of Additional Wages on which CPF contributions are payable for an employee in a given calendar year. 
• For 2025, the AW ceiling is calculated as: $102,000 – Total Ordinary Wages (OW) subject to CPF for the year

3. What are Ordinary Wages (OW)?

• Ordinary Wages refer to monthly fixed wages (example: basic salary, monthly fixed allowances). 
• CPF contributions are made monthly on OW, up to a cap of $7,400/month (as of Jan 01, 2025 release by the CPF board).

4. How is the AW ceiling calculated?

Example:
If an employee earns $8,000/month, only $7,800/month is CPF-subject OW.

• Annual OW subject to CPF:
  $7,800 × 12 = $88,800
• AW ceiling for 2025:
  $102,000 – $88,800 = $13,200
• So, only up to $13,200 of bonuses or other AW will attract CPF-payable for the entire year 2025.

5. What happens if the AW exceeds the ceiling?

• If the total AW paid exceeds the calculated ceiling, CPF contributions will only be applied up to the ceiling amount. 
• The excess portion of the AW will not attract and contribute to the CPF.

6. Is the AW ceiling prorated for partial-year employment?

• Yes, the AW ceiling will be prorated based on the number of months the employee has worked in the year. 
• If you are using payroll software like Omni HR, CPF contributions will be automatically recalculated by the system based on the number of months the employee has worked during the year.

7. Where can I check how much AW ceiling is left for an employee?

• You can track it manually or use the CPF Calculator on the CPF Board’s website. But using Omni HR payroll system will auto-calculate it if monthly CPF is properly recorded.

8. Where can I get help with CPF AW?

• Additional Wage ceiling calculator
• Write to CPF board: https://www.cpf.gov.sg/service/write-to-us
• Call CPF  Board: 6220-2340

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