CPF on Bonus (Additional Wage) in Singapore: Your Questions Answered
These are the questions people ask most often about cpf on bonus (additional wage). Each answer is short; follow the links for the full detail.
What does a cpf on bonus (additional wage) calculation tell me?
Calculates CPF on a bonus or other additional wage using the AW ceiling of S$102,000 minus the ordinary wages already subject to CPF in the year.
What is the formula?
AW ceiling = S$102,000 − (ordinary wage capped at S$8,000 × 12). CPF applies to the bonus up to that ceiling at the same percentage rates as ordinary wages.
What do I need to enter?
Bonus / additional wage for the year (S$), Monthly salary (S$), Age (years).
Are these figures exact?
They follow the published CPF and MOM formulas, but your employer's payroll may round slightly differently or include allowances in a different way. Your payslip is the final reference.
Can you show an example?
For example, with these inputs:
- Bonus / additional wage for the year (S$): 15,000
- Monthly salary (S$): 5,000
- Age (years): 30
the calculator returns:
- Additional Wage ceiling left: S$42,000.00
- Bonus subject to CPF: S$15,000.00
- Employee CPF on bonus: S$3,000.00
- Employer CPF on bonus: S$2,550.00
- Bonus after CPF: S$12,000.00
Any tips?
- Keep a copy of your payslips: MOM requires employers to issue itemised payslips, which makes checking deductions easy.
- CPF rates drop in steps after age 55, so check which age band applies from the month after your birthday.
- Use your basic salary plus fixed allowances as the ordinary wage; bonuses are additional wages with their own ceiling.
Background
Total compensation in Singapore is more than the number on your offer letter. Employer CPF, variable bonuses, the Annual Wage Supplement (often called the 13th month) and benefits all add value, and comparing offers on take-home pay alone can hide meaningful differences.
Payslips must be itemised, showing basic pay, allowances, overtime, deductions and CPF. Comparing a payslip against an independent calculation is the easiest way to catch mistakes, especially in the first month of a new job, after a pay rise, or when you cross an age band.
The Central Provident Fund is Singapore's mandatory savings scheme for citizens and permanent residents. Contributions are shared between employee and employer and flow into the Ordinary Account for housing, education and investment, the Special Account for retirement, and MediSave for healthcare. Because the money is locked up for specific purposes, many people underestimate how much of their total pay it represents.
Related calculations
- Monthly to Hourly Rate Calculator: Converts a monthly salary into the hourly rate MOM uses for overtime and deductions.
- Daily Rate of Pay Calculator: Finds the daily rate of pay used for public holiday work, rest days and unpaid leave deductions.
- Pro-Rated Salary Calculator: Calculates salary for an incomplete month, such as when you join or leave mid-month.
- Salary Increment Calculator: Shows the new salary after a percentage raise and how much more you earn per year.
Try it yourself with the CPF on Bonus (Additional Wage) Calculator.
Run your own numbers: CPF on Bonus (Additional Wage) Calculator