Ordinary Wages (OW) are the wages given to an employee for that month’s employment and payable by the 14th of the following month — a monthly salary, in practice. CPF is charged on OW up to the SGD 8,000 monthly ceiling from 1 January 2026, so the most a month of salary can send to CPF is SGD 2,960 at the 37% rate for employees 55 and below.
Key takeaways
- A payment is an Ordinary Wage when it is given for employment in that month and is payable by the 14th of the following month — CPF Board’s two conditions, met by a monthly salary.
- The Ordinary Wage ceiling caps the OW that attracts CPF in a calendar month at SGD 8,000 from 1 January 2026. CPF Board’s own example: on Ordinary Wages of SGD 9,000 with an SGD 8,000 ceiling, contributions are computed on SGD 8,000.
- Wages that fail either OW condition are Additional Wages — an annual bonus is the standard example — and carry a separate annual ceiling of SGD 102,000 less the Ordinary Wages already subject to CPF that year, applied per employee, per employer, per calendar year.
- Wages under the CPF Act are remuneration in money including bonuses: basic wage, overtime pay, bonuses, allowances, commission and cash incentives count; termination benefits, reimbursements and non-cash benefits do not.
- For employees aged 55 and below earning above SGD 750 a month the combined rate on OW is 37% — 17% employer and 20% employee — so the ceiling caps monthly CPF on salary at SGD 2,960.
Two wage types, two ceilings
Every payment an employer makes is first tested for whether it is wages at all, then classified as Ordinary or Additional. The classification decides which ceiling applies, and therefore how much CPF the payment attracts.
Not everything an employee receives is wages: CPF Board excludes termination benefits such as retrenchment pay, reimbursements of expenditure incurred for the employer, and benefits in kind such as a commemorative watch. The CPF Annual Limit of SGD 37,740 then caps everything that reaches the accounts in a year, mandatory and voluntary together.
Where the ceiling starts to bite
For an employee aged 55 and below at the combined 37% rate. Above SGD 8,000 a month the CPF column stops growing, and the last column is the room a bonus has left that year.
| Monthly salary | OW subject to CPF | Monthly CPF | AW ceiling left |
|---|---|---|---|
| SGD 5,000 / month | SGD 5,000 | SGD 1,850 | SGD 42,000 |
| SGD 8,000 / month | SGD 8,000 | SGD 2,960 | SGD 6,000 |
| SGD 9,000 / month | SGD 8,000 | SGD 2,960 | SGD 6,000 |
| SGD 12,000 / month | SGD 8,000 | SGD 2,960 | SGD 6,000 |
The ceiling, step by step
Each step raises the maximum monthly CPF on salary — SGD 2,960 at today’s ceiling. The step schedule is carried from the previous version of this page pending a re-read of the CPF contribution rate tables.
Where the classification shows up
Five things people get wrong
- CPF Board — What payments attract CPF contributions — wage definition, OW and AW conditions, the ceilings and the AW formula
- CPF Board — How much CPF contributions to pay — contribution rates by age and the wage ceilings
Official statistics 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 seek independent professional advice before making any financial decisions.