Additional Wages (AW) are wages that do not meet the Ordinary Wage test for the month, such as an annual performance bonus, and they attract CPF contributions only up to a ceiling worked out over the calendar year.
Key takeaways
- Wages not classified as Ordinary Wages for the month are Additional Wages; the CPF Board gives the annual performance bonus as the example.
- The AW ceiling limits the amount of AW that attracts CPF contributions, and is applied per employer per calendar year.
- The ceiling is SGD 102,000 less the total Ordinary Wages subject to CPF for that year.
- SGD 102,000 is the annual salary ceiling — the maximum total wages, Ordinary and Additional combined, on which CPF is payable in a year.
- The AW ceiling and the annual salary ceiling were unchanged for 2026, while the Ordinary Wage ceiling rose to SGD 8,000 a month.
What counts as an Additional Wage
Additional Wages are defined by exclusion: wages that are not classified as Ordinary Wages for the month are Additional Wages for that month. In practice this covers payments that are not tied to work in a single month or that are paid later than the 14th of the following month, with the annual performance bonus as the standard illustration.
How the Additional Wage ceiling is worked out
The AW ceiling is SGD 102,000 less the total Ordinary Wages subject to CPF for the year, and it is applied per employer per calendar year. Because the annual salary ceiling of SGD 102,000 covers Ordinary and Additional Wages together, the more OW that has already attracted CPF during the year, the smaller the AW ceiling becomes.
Why the ceiling moves with the Ordinary Wages paid that year
An employee whose Ordinary Wages sit at the SGD 8,000 monthly ceiling for all twelve months has SGD 96,000 of OW subject to CPF, leaving an AW ceiling of SGD 6,000. An employee on lower Ordinary Wages has more headroom for bonuses to attract CPF contributions. The CPF Board publishes an Additional Wage ceiling calculator for the working.
Key Additional Wage figures
| Item | Figure |
|---|---|
| Annual salary ceiling | SGD 102,000 |
| AW ceiling formula | SGD 102,000 less OW subject to CPF for the year |
| Applied | per employer, per calendar year |
| AW ceiling where OW sits at SGD 8,000 for 12 months | SGD 6,000 |
Figures as at 2026. Source: CPF Board.
Worked example
An employee whose Ordinary Wages subject to CPF total SGD 60,000 over the calendar year has an AW ceiling of SGD 42,000 — SGD 102,000 less SGD 60,000. A year-end bonus of SGD 50,000 would attract CPF contributions on SGD 42,000 of it, with the remaining SGD 8,000 falling outside the ceiling.
Related terms
All Singapore glossary terms →Related calculator
See the CPF contribution rates by age band and how the wage ceilings apply to bonuses.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to the CPF Board and seek independent professional advice before making any financial decisions.