If the OW ceiling is $6,300 and the employee's OW for the calendar month is $6,500, his/her contribution would be computed based on $6,300. 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.