What is the Additional Wage (AW) ceiling?

Owned by Customer Service Team
Last updated: Jan 21, 2020
1 min read

 

The amount of CPF contributions payable on AW is capped at the yearly AW Ceiling of

 

​ $102,000* – Total OW subject to CPF for the year

  • Equivalent to 17 months x $6,000

 


The AW Ceiling is applied on a per employer per year basis. Employers are required to monitor and limit the contributions on Additional Wages of their employees. This is to prevent refund of excess payment and avoid situations where refunds cannot be made due to insufficient funds in their employees' CPF accounts. However, employers may apply for a single AW Ceiling for transferred employees within two related companies.

 

You can compute the AW ceiling for your employees using the Additional Wage Ceiling Calculator. Learn more on the computation from the Examples on the Computation of AW Ceiling (PDF, 0.6MB)​.

 

 

source: www.cpf.gov.sg