Ordinary Wages (OW) are the wages due or granted wholly or exclusively in respect of an employee’s employment during a particular month, and payable by the 14th of the following month — the monthly salary being the usual example.
Key takeaways
- A payment counts as OW when it is due or granted wholly or exclusively for employment during that month and is payable by the 14th of the following month.
- The OW ceiling limits the amount of OW that attracts CPF contributions in a calendar month, and is SGD 8,000 from 1 January 2026.
- The ceiling rose in four steps from SGD 6,000 — to SGD 6,300 in September 2023, SGD 6,800 in 2024, SGD 7,400 in 2025 and SGD 8,000 in 2026.
- For employees aged 55 and below earning more than SGD 750 a month, the combined contribution rate on OW is 37% — 17% from the employer and 20% from the employee, from 1 January 2026.
- Wages that do not meet the OW conditions are treated as Additional Wages, which carry a separate annual ceiling.
What counts as an Ordinary Wage
The CPF Board applies two tests. The wages have to be due or granted wholly or exclusively in respect of the employee’s employment during that month, and they have to be payable by the 14th of the following month. A monthly salary meets both tests. A payment that fails either test — an annual bonus, for instance — falls into Additional Wages for that month instead.
The Ordinary Wage ceiling
The OW ceiling caps the amount of Ordinary Wages that attracts CPF contributions in any calendar month, and it applies to all employees. It has been raised in four steps so that employers and employees can adjust:
- SGD 6,000 a month — January 2016 to August 2023
- SGD 6,300 a month — September to December 2023
- SGD 6,800 a month — 2024
- SGD 7,400 a month — 2025
- SGD 8,000 a month — from 1 January 2026
How OW feeds into CPF contributions
CPF contributions on OW are worked out on the lower of the actual Ordinary Wages and the ceiling. From 1 January 2026, employees aged 55 and below earning more than SGD 750 a month attract a combined 37% — 17% from the employer and 20% from the employee. Lower phased-in rates apply to employees on monthly wages of SGD 750 or less, and rates step down by age band above 55.
Key Ordinary Wage figures
| Item | Figure |
|---|---|
| OW ceiling (from 1 Jan 2026) | SGD 8,000 per month |
| OW ceiling (2025) | SGD 7,400 per month |
| Combined contribution rate on OW — aged 55 and below | 37% |
| Maximum monthly CPF on OW — aged 55 and below | SGD 2,960 |
| Wage level at which full rates apply | above SGD 750 per month |
Figures as at 2026. Source: CPF Board.
Worked example
An employee aged 55 or below on a monthly salary of SGD 9,000 has CPF contributions worked out on the OW ceiling of SGD 8,000, not the full salary. At the combined 37% rate, that is SGD 2,960 for the month, and the SGD 1,000 above the ceiling attracts no CPF contribution as Ordinary Wages.
Related terms
All Singapore glossary terms →Related calculator
See the CPF contribution rates by age band and how the Ordinary Wage ceiling applies.
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.