Why does the excess CPF from the Additional Wage ceiling calculator differ from the automatic refund, and how do I calculate my employee's share?
The Additional Wage (AW) ceiling calculator computes excess CPF on wages above the AW ceiling, while the automatic refund only covers excess contributions above the Annual Limit ($37,740).
 
This means:
  • Employees below 55 years old with full contribution rates (37%) will typically see no difference between the two figures.
  • Employees with lower contribution rates (e.g. those above 55 or 1st/2nd year SPRs) may have excess contributions above the AW ceiling that fall below the Annual Limit. Employers shall apply for a refund to rectify such overpayments.   
  • A few dollar difference may still arise as the AW ceiling calculator computes CPF contributions payable on Total Wages by rounding to the nearest dollar at the monthly level, while the automatic refund is computed based on total CPF contributions paid at the annual level.
To calculate the employee's share of the automatic refund, use the following formula:
 
Employee's share = (Total excess CPF refunded ÷ Total CPF contribution rate) × Employee's share of CPF contribution rate
 
Example:
Employee is a 58-year-old Singapore Citizen with $40,000 total CPF contributions for 2025.
 
  1. Calculate total excess refunded:
Total excess = Total paid - Annual Limit
                     = $40,000 - $37,740
                     = $2,260
 
  1. Calculate employee’s share:
Employee’s share = ($2,260 ÷ 32.5%1) × 17%1
 = $1,182 (cents should be dropped)
 
1 Applicable for Singapore Citizen or Singapore Permanent Resident (3rd year onwards) aged 55-60. Refer to past CPF contribution rates.

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