Scheduled Maintenance: CPF digital services will not be available on 7 Apr 2024, from 12am to 8am.

A Singapore Government Agency Website
Central Provident Fund Board logo
Who we are Tools and services Infohub
You are at
Employer services

Employer obligations
Making CPF contributions
Making Voluntary Contributions
Compliance and rectifications
Corporate service buyers
Who we are
Tools and services
Infohub
CPF EZPay
FAQs
Calculators
Forms
Main menu

Employer services

Employer services home
Account creation and management
Direct Debit Arrangement
Voluntary CPF contribution
Refund and adjustment
Composition amount payment
Other forms
Activities
Main menu

Employer obligations

Find out more
Declaring accurate wage information
Who should receive CPF contributions
What payments attract CPF contributions
How much CPF contributions to pay
Skills Development Levy
Contributions to self-help groups
SHARE donations
Main menu

Making CPF contributions

Find out more
Applying for a CPF Submission Number
Updating employer’s particulars
Submitting CPF contributions via CPF EZPay
Submitting CPF contributions via CPF EZPay Mobile
Payment modes
Main menu

Making Voluntary Contributions

Find out more
Main menu

Compliance and rectifications

Find out more
Enforcement and penalties for non-compliance
Applying for refund of CPF contributions
Applying for adjustment of CPF contributions
Main menu

Corporate service buyers

Paying CPF for self-employed vendors

Your page is loading.
One moment please.

Updates on 20 Apr 2021

Added new section for home page under banner.

Definition

What are wages

Under the CPF Act, wages are defined as remuneration in money, including any bonus that is due or granted to a person in respect of his employment. 

Quick tip

CPF contributions are computed based on an employee's wages.

Examples of wages

Here are some examples of what are considered wages.

Basic wage

Salary payable to an employee for work done.

Overtime pay

Payment to an employee for working beyond normal working hours.

Bonus

Payment such as performance bonus. 

Allowance

For example, meal allowance and transport allowance.

Commission

For example, sales commission.

Cash incentive

For example, productivity incentive.

Examples of payments that are not considered wages

These payments are not considered wages and do not attract CPF contributions.

Termination benefit

Compensation that is not given for services or work done by the employee. For example, retrenchment benefit.

Reimbursement

Reimbursement incurred on behalf of the employer for official purposes. The reimbursement amount must not exceed the expenditure incurred. For example, purchase of office stationery.

Benefit in kind

Non-cash benefit or gift given to the employee. For example, a commemorative watch.

Need more examples?

View more examples of allowances and payments that attract CPF, as well as payments that are not considered wages.

See examples (PDF, 0.2MB)
Classification

Classifying wages as Ordinary Wages or Additional Wages

Total Wages (TW)

Wages can be classified into Ordinary Wages or Additional Wages. Total Wages is the sum of Ordinary Wages and Additional Wages.

CPF contributions are computed on Total Wages payable to the employee in a calendar month, with different ceilings applied to Ordinary Wages and Additional Wages.

Ordinary Wages (OW)

What are Ordinary Wages?

For wages to be classified as Ordinary Wages for the month, it must satisfy both conditions below:

  • The wages are due or granted wholly or exclusively in respect of an employee’s employment during that month; and
  • The wages for that month are payable by 14th of the following month.

For example, monthly salary.

Ordinary Wage ceiling

The Ordinary Wage (OW) ceiling limits the amount of OW that attract CPF contributions in a calendar month for all employees. It will be gradually raised to $8,000 by 2026.

 

Information on past OW ceilings can be found in the CPF contribution rate tables.

View table
How the Ordinary Wage ceiling works

If the OW ceiling is $6,800 and the employee's OW for the calendar month is $7,000, his/her contribution would be computed based on $6,800. That means CPF contributions are not required on the remaining $200.

Additional Wages (AW)

What are Additional Wages?

Wages which are not classified as Ordinary Wages will be Additional Wages for the month.

 

For example, annual performance bonus.

Additional Wage ceiling

The Additional Wage ceiling limits the amount of Additional Wages that attract CPF contributions. The Additional Wage ceiling is applied on a per employer per calendar year basis. 

 

The Additional Wage ceiling is computed as follows.

$102,000* - Total Ordinary Wage subject to CPF for the year

*Equivalent to 17 months x Ordinary Wage ceiling of $6000 

How the Additional Wage ceiling works

Learn how the Additional Wage ceiling is computed and applied.

See examples (PDF, 0.6MB)
Additional Wage ceiling calculator

This tool helps you compute the Additional Wage ceiling for your employees, in just minutes.

Use calculator
FAQs

Common questions