Additional Wages (AW) are wages that are not Ordinary Wages for the month — an annual performance bonus is CPF Board’s example. CPF applies to AW only up to the AW ceiling: SGD 102,000 less the Ordinary Wages subject to CPF for the year. With the Ordinary Wage ceiling at SGD 8,000 a month from 1 January 2026, someone paid at or above it all year by one employer has an AW ceiling of SGD 6,000.
Singapore · 2026 AW ceiling with pay at the SGD 8,000 OW ceiling all year
SGD 6,000
Per yearSGD 102,000
OW ceilingSGD 8,000
12 × OWSGD 96,000
Rate, ≤5537%
AW ceiling at the OW ceilingSGD 6,0002026, full year, one employer
Annual salary ceilingSGD 102,000OW plus AW, since 1 January 2016
Ordinary Wage ceilingSGD 8,000a month, from 1 January 2026
Rate on AW, 55 and below37%20% from the employee, as on OW
Pay CPF by14thof the next month; due on the last day of the month
Late payment interest1.5%a month from the day after the due date, minimum SGD 5
On this pageOW, AW and the ceilingsWorked exampleWhat it means for youMisconceptionsRelated termsSources
Key takeaways
- Wages include any bonus. Wages count as Ordinary Wages for a month only if they are given for work in that month and payable by the 14th of the following month; everything else is Additional Wages. CPF Board gives an annual performance bonus as its example, and lists retention, 13th-month, sign-on and discretionary bonuses as attracting CPF. The payable date is the date the employer is contractually obliged to pay.
- The AW ceiling is SGD 102,000 minus the Ordinary Wages subject to CPF for the year, per employee, per employer, per calendar year. The SGD 102,000 annual salary ceiling has not changed since 1 January 2016, while the OW ceiling rose from SGD 6,800 in 2024 to SGD 7,400 in 2025 and SGD 8,000 in 2026. SGD 102,000 ÷ 12 is SGD 8,500, but that is not a CPF figure: twelve months at the SGD 8,000 ceiling use SGD 96,000, leaving SGD 6,000 for AW.
- Employers estimate the AW ceiling at every AW payment from the year’s expected OW, then recompute it with actual OW in December or the employee’s last month, whichever is earlier. A shortfall is paid with that month’s contributions; an excess is recovered through an online refund application. Which year’s ceiling applies depends on when the AW is due and payable.
- AW attracts the same rates as OW: 37% in total, 20% from the employee, for an employee aged 55 and below whose total wages for the month exceed SGD 750, for Singapore Citizens and SPRs from their third year in the private sector or non-pensionable government service. The SGD 2,960 and SGD 1,600 monthly maximums apply to contributions on OW only. The rate band is set by the month’s total wages before the AW is capped.
- From 1 January 2024, CPF is payable on AW paid to an ex-employee only if the person was a Singapore Citizen or SPR on both the last day of employment and the date the AW is payable. Two employers each apply their own AW ceiling. Related companies can apply for a single ceiling for a transferred employee whose mandatory contributions have exceeded or will exceed the AW ceiling, if the employee is informed and the contract terms are unchanged. From February 2024, contributions above the SGD 37,740 CPF Annual Limit are refunded automatically each year; excess above the AW ceiling but under that limit still needs an application.
Definition
What are Additional Wages?
CPF splits pay into two kinds, each with its own ceiling, and one annual cap over both.
Ordinary WagesSGD 8,000Pay for work in the month, payable by the 14th of the next month. Capped at SGD 8,000 a month from 1 January 2026.
Additional WagesAW ceilingEverything else; CPF Board’s example is an annual performance bonus. Capped at SGD 102,000 less the year’s OW subject to CPF.
Annual salary ceilingOW + AWSGD 102,000 a year for OW and AW together, per employer, per calendar year, unchanged since 1 January 2016.
CPF Board apportions overtime pay to the month the overtime was worked before classifying it. In its example, April overtime payable on 10 May is OW for April, while the same overtime payable on 30 May is AW for May, with CPF payable by 14 June.
Worked example
How big is the AW ceiling?
Money Snap’s calculation of the 2026 AW ceiling with CPF Board’s formula (SGD 102,000 less the year’s OW subject to CPF), for an employee paid the same OW every month for the full year by one employer. Only the SGD 6,000 row appears in CPF Board’s own examples. A raise, a mid-year exit or unpaid months change it.
| Monthly OW | OW subject to CPF | AW ceiling |
|---|---|---|
| SGD 4,000 | SGD 48,000 | SGD 54,000 |
| SGD 5,000 | SGD 60,000 | SGD 42,000 |
| SGD 6,000 | SGD 72,000 | SGD 30,000 |
| SGD 7,000 | SGD 84,000 | SGD 18,000 |
| SGD 8,000 or more | SGD 96,000 | SGD 6,000 |
CPF Board’s example: SGD 9,000 salary, SGD 100,000 of AW in 2026
OW: SGD 8,000 × 12SGD 96,000
AW ceilingSGD 6,000
CPF on AW: employer 17%SGD 1,020
CPF on AW: employee 20%SGD 1,200
AW with no CPFSGD 94,000
CPF Board’s 2026 example of an employee below 55 employed for the whole year, with the AW paid in January, June and December. Only SGD 6,000 of the SGD 100,000 attracts CPF; the other SGD 94,000 does not, provided the employee works to the end of the year.
What it means for you
Where the AW ceiling shows up
Take-home pay on a bonusCPF calculator
For a Singapore Citizen or SPR from the third year, aged 55 and below, in the private sector or non-pensionable government service, with total wages above SGD 750 in the month, 20% of a bonus within the AW ceiling goes to CPF as the employee’s share. AW above the ceiling attracts no CPF, although the ceiling is recomputed in December or the last month of employment.A raise during the yearCPF contribution rates
A raise that increases the OW subject to CPF (OW counts only up to the SGD 8,000 monthly ceiling) uses more of the SGD 102,000, so the AW ceiling shrinks. In CPF Board’s example, a raise from SGD 4,500 to SGD 8,000 a month in April cut the AW subject to CPF from SGD 48,000 to SGD 16,500.Leaving a jobCPF calculator
The ceiling is recomputed in the last month. In CPF Board’s example, an employee on SGD 10,000 a month who leaves in August has a ceiling of SGD 102,000 − SGD 8,000 × 8 = SGD 38,000.Two employersCPF contribution rates
Each employer applies its own AW ceiling. Related companies can apply to CPF Board for a single ceiling for a transferred employee, on conditions.Tax reliefIncome tax calculator
IRAS gives CPF Relief on compulsory employee contributions on wages within the OW and AW ceilings, so the part of a bonus above the AW ceiling earns no CPF Relief.Common misconceptions
Five things people get wrong
The monthly CPF ceiling is SGD 8,500.
That is SGD 102,000 ÷ 12, which CPF does not use. The monthly OW ceiling is SGD 8,000; the SGD 102,000 is an annual cap on OW and AW together.
Bonuses never attract CPF.
Bonuses are wages under the CPF Act and attract CPF. A bonus that is not Ordinary Wages for the month, such as an annual performance bonus, is Additional Wages and attracts CPF up to the AW ceiling.
AW is capped at SGD 8,000 a month too.
The AW ceiling is annual, not monthly. The SGD 2,960 monthly maximum (employer and employee combined, ages 55 and below) caps contributions on OW only.
The AW ceiling is fixed at the start of the year.
It is estimated at each AW payment and recomputed with actual OW in December or the last month of employment.
Two jobs share one AW ceiling.
Each employer applies its own AW ceiling. The one exception is an employee transferred between two related companies: the employer can apply to CPF Board for a single ceiling if the conditions are met, including that the employee’s mandatory contributions have exceeded or will exceed the AW ceiling.
Sources and reviewChecked against the CPF Board employer pages, FAQs and 2026 examples on 2026-09-28
- CPF Board — What payments attract CPF contributions — OW, AW and the AW ceiling formula
- CPF Board — How much CPF contributions to pay — contributions on total wages
- CPF Board — What is the Ordinary Wage ceiling? — the ceilings from 2016 to 2026
- CPF Board — Examples for computation of the AW ceiling (2026) — the worked examples
- CPF Board — Are CPF contributions payable on bonus? — which bonuses attract CPF
- CPF Board — AW paid to ex-employees — the 1 January 2024 rule
- CPF Board — Refunds above the AW ceiling and Annual Limit — recovering excess contributions
- CPF Board — Contribution rate tables from 1 January 2026 — rates on OW and AW
- CPF Board — Is overtime pay OW or AW? — the overtime example
- CPF Board — Making CPF contributions — due dates
- CPF Board — Enforcement and penalties — late payment interest
- IRAS — CPF Relief for employees — relief within the ceilings
Official CPF Board rules and examples, for general information only. Not financial advice.
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 IRAS and seek independent professional advice before making any financial decisions.