How to Calculate CPF on Bonus (Additional Wage) in Singapore: A Step-by-Step Guide
Calculates CPF on a bonus or other additional wage using the AW ceiling of S$102,000 minus the ordinary wages already subject to CPF in the year.
In Singapore, payslip maths decides how much you can save, invest and spend, and CPF takes a sizeable share before the money reaches your bank account. Knowing the numbers in advance makes salary negotiations, job switches and budgeting far less of a guess.
What you need
- Bonus / additional wage for the year (S$)
- Monthly salary (S$)
- Age (years)
Step by step
- Enter the bonus / additional wage for the year (S$).
- Enter the monthly salary (S$).
- Enter the age (years).
- The results update as you type, or press Calculate.
- Read the additional wage ceiling left first, then the supporting figures below it.
The formula
AW ceiling = S$102,000 − (ordinary wage capped at S$8,000 × 12). CPF applies to the bonus up to that ceiling at the same percentage rates as ordinary wages.
Worked example
For example, with these inputs:
- Bonus / additional wage for the year (S$): 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$12,000.00
A second example
Now change the inputs to:
- Bonus / additional wage for the year (S$): 18,750
- Monthly salary (S$): 5,000
- Age (years): 30
the calculator returns:
- Additional Wage ceiling left: S$42,000.00
- Bonus subject to CPF: S$18,750.00
- Employee CPF on bonus: S$3,750.00
- Employer CPF on bonus: S$3,187.50
- Bonus after CPF: S$15,000.00
Practical tips
- Keep a copy of your payslips: MOM requires employers to issue itemised payslips, which makes checking deductions easy.
- Overtime eligibility depends on your salary and role under Part IV of the Employment Act, not just your job title.
- Remember the S$8,000 monthly Ordinary Wage ceiling from January 2026: salary above it does not attract CPF.
- First- and second-year PRs contribute at graduated rates unless they opt in to full rates, so their figures will be lower.
Background
CPF distinguishes between ordinary wages, which are paid for work in the month such as basic salary and fixed allowances, and additional wages, such as annual bonuses and leave encashment. Ordinary wages are capped at S$8,000 a month from January 2026, while additional wages are capped by an annual ceiling of S$102,000 minus the ordinary wages already subject to CPF in the year.
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.
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.
Want to skip the arithmetic? The free CPF on Bonus (Additional Wage) Calculator does all of this instantly and updates as you type.
Run your own numbers: CPF on Bonus (Additional Wage) Calculator