How is the Central Provident Fund contribution calculated?
For the purpose of CPF, wages are classified into 2 categories.
Ordinary Wages
Ordinary Wages (OW) refers to the basic salary earned in the month. The CPF contribution on OW is capped at $6,000 a month.
Additional Wages
Additional Wages (AW) refers to bonuses and other variable components earned. The CPF contribution on AW is capped based on the following computation:
AW subject to CPF = Total Wages – OW subject to CPF
Total wages are capped at $6,000 x 17 months = $102,000 a year
For example, an employee earning $8,000 a month with an annual bonus of $50,000 will contribute CPF based on the following capping:
OW: CPF will be contributed based on the cap of $6,000 on a monthly basis.
AW: AW subject to CPF =$102,000* – OW subject to CPF for the year
= $102,000 – ($6,000 x 12 months)
= $ 30,000
AW CPF will be contributed based on the cap of $30,000.
*Equivalent to 17 months x $6,000
CPF Calculators
Still not sure how much CPF money you should be receiving or how much you can use?
These CPF calculators do the job for you.
- CPF Contribution Calculator for Singapore citizens and PRs in their 3rd year and onwards – Check how much your CPF contributions are supposed to be.
- CPF LIFE Payout Estimator – If you’re at least 40 years old (born in 1981 or earlier), estimate how much you can receive in monthly retirement payouts.
- CPF Housing Withdrawal Limits Calculator – Find out how much you can use to pay for your home.
- Self-Employed Medisave Contribution Calculator – For self-employed folks to check how much they need to fork out for Medisave.
- CPF Retirement Calculator — Figure out if you’re on track for the retirement lifestyle you want with this simple financial planning calculator.