What is meant by additional wage (AW) ceiling/capping?
Additional Wage (AW) ceiling/capping logic is based on either :
Previous Year Ordinary Wage (OW)
Employer may use previous year’s OW to estimate the AW ceiling
Current Year Ordinary Wage (OW)
Employers may use current year’s OW to estimate the AW ceiling
Remember to recalculate the AW ceiling : Do recalculate the AW ceiling in either December or the employee’s last month of employment (whichever is earlier), to pay up the shortfall if any.
source: https://www.cpf.gov.sg