Salary and bonus are different wage types
CPF groups employee wages into Ordinary Wages (OW) and Additional Wages (AW). CPF Board defines OW as wages for employment in a month that are payable by the 14th of the following month. Monthly salary is a common example. Wages that do not meet the OW definition are generally treated as AW; an annual performance bonus is a typical example.
This classification matters because different ceilings apply. It is not simply “CPF on salary” versus “no CPF on bonus.” Both types may attract CPF contributions, but the maximum wage amount subject to contributions is calculated differently.
The 2026 Ordinary Wage ceiling
CPF Board says the Ordinary Wage ceiling reached S$8,000 per month from 1 January 2026. That is the maximum monthly OW amount on which CPF contributions are payable. If an employee’s eligible monthly salary is above S$8,000, the portion above the OW ceiling does not attract CPF as OW for that month.
Contribution rates are separate from the ceiling. CPF rates depend on factors including citizenship or permanent-resident year, age and wage band. The employer and employee shares also differ. Do not multiply every payslip by one universal rate without checking the applicable CPF table for that employee and year.
The Additional Wage ceiling is an annual calculation
For 2026, CPF Board sets the annual salary ceiling at S$102,000. The AW ceiling is calculated as:
S$102,000 − total OW subject to CPF for the year
For example, if an employee has S$8,000 of OW subject to CPF for all 12 months, annual OW subject to CPF is S$96,000, leaving an estimated AW ceiling of S$6,000. If monthly OW subject to CPF were S$4,500 throughout the year, the calculation would leave S$48,000 for AW. These are illustrations; an employee whose salary changes during the year needs the actual cumulative OW figure.
The ceiling is applied per employee, per employer and per calendar year. The date wages are due and payable can also matter. CPF’s examples show that a bonus relating to one year but due and payable in the next can fall under the next year’s AW ceiling.
A practical payslip check
When a bonus is paid, check whether it is classified as AW, which year it is due and payable in, and how much OW has already been subject to CPF with that employer. Use CPF’s Additional Wage Ceiling Calculator for the year rather than assuming every bonus has the full annual salary cap available.
If the total contribution appears unexpected, compare the wage classification and contribution year with CPF’s official calculation. The ceiling determines how much wage is subject to contributions; the contribution rate table determines how much CPF is payable on that amount.
Sources
- CPF Board: Ordinary Wage ceiling — S$8,000 monthly ceiling from 2026; verified 15 Oct 2026.
- CPF Board: Additional Wage ceiling — formula and annual ceiling; verified 15 Oct 2026.
- CPF Board: CPF contribution rates — current rates and eligibility factors; verified 15 Oct 2026.