The Progressive Wage Model (
PWM) wage requirements include employee’s CPF contributions, but not employers’ CPF contributions. Employers must contribute their share of CPF contributions on top of the wage amount, based on the applicable contribution rates.
If the PWM monthly wage requirement is $2,500, employers should pay at least $2,500 in wages (inclusive of employee’s CPF contributions). Additionally, the employer must contribute their share of CPF contributions calculated on this $2,500 wage, based on the applicable
CPF contribution rates.