CPF Salary Ceiling 2026 — OW and Annual Limits
Not all of your salary attracts CPF contributions. Two key caps — the Ordinary Wage ceiling and the Annual ceiling — limit how much of your earnings are CPF-liable. Here's how they work.
Last updated: June 2026 · All figures sourced from cpf.gov.sg.
The Two CPF Salary Ceilings
CPF contributions are calculated on two categories of wages, each with its own ceiling:
| Ceiling | Amount (2026) | Applies To |
|---|---|---|
| Ordinary Wage (OW) Ceiling | S$8,000 / month | Regular monthly salary, wages, allowances |
| Annual AW Ceiling | S$102,000 / year | Bonuses, commissions, ad-hoc payments (Additional Wages) |
Ordinary Wage (OW) Ceiling Explained
Ordinary Wages are wages due wholly and exclusively for the month — essentially your regular monthly salary. The OW ceiling of S$8,000 per month means that only the first S$8,000 of your monthly salary is subject to CPF contributions.
✦ Example: S$10,000 monthly salary (age 35)
CPF-liable OW: S$8,000 (capped)
Amount above ceiling: S$2,000 — no CPF contributions
Employer CPF: S$8,000 × 17% = S$1,360
Employee CPF: S$8,000 × 20% = S$1,600
Total CPF: S$2,960/month (on S$8,000, not S$10,000)
Additional Wage (AW) Ceiling Explained
Additional Wages (AW) are wages that are not wholly and exclusively for the month — typically bonuses, commissions, overtime pay, and other ad-hoc payments. The Annual ceiling for all CPF-liable wages is S$102,000.
Since OW contributions are already counted against the annual ceiling, the remaining AW ceiling is:
AW Ceiling = S$102,000 − Total OW contributed during the year
How to Calculate Your AW Ceiling
| Monthly Salary | OW Contributed (12 months) | Remaining AW Ceiling |
|---|---|---|
| S$5,000 | S$60,000 | S$42,000 |
| S$6,000 | S$72,000 | S$30,000 |
| S$7,000 | S$84,000 | S$18,000 |
| S$8,000 | S$96,000 | S$6,000 |
| S$10,000+ | S$96,000 (capped at S$8,000 × 12) | S$6,000 |
How Ceilings Affect Your CPF Savings
The salary ceilings have several important effects:
- Higher earners contribute a lower effective rate. Someone earning S$16,000/month only contributes CPF on S$8,000, making their effective rate half of the statutory rate.
- Bonus contributions are limited. The AW ceiling means only a portion of large bonuses attract CPF. For a maxed-out salary (S$8,000/month), only S$6,000 of bonus is CPF-liable.
- Employer cost is capped. Employers do not pay CPF on wages above the ceilings, which affects total compensation structures.
History of CPF Salary Ceilings
The CPF salary ceiling has been raised over the years to keep pace with wage growth:
| Year | OW Ceiling | Annual Ceiling |
|---|---|---|
| Before 2016 | S$5,000/month | S$85,000/year |
| 2016 | S$6,000/month | S$102,000/year |
| Sep 2023 | S$6,800/month | S$102,000/year |
| Jan 2024 | S$6,800/month | S$102,000/year |
| Sep 2024 | S$7,400/month | S$102,000/year |
| Jan 2025 | S$7,400/month | S$102,000/year |
| Sep 2025 | S$8,000/month | S$102,000/year |
Note: The OW ceiling increase to S$8,000 was phased in between 2023 and September 2025. Always verify the current ceiling on cpf.gov.sg.
Calculate Your CPF Contributions with Ceilings
Our calculator automatically applies the OW and Annual ceilings to your salary and bonus.
Open Contribution Calculator →Key Facts
- Ordinary Wage (OW) ceiling: S$8,000 per month
- Annual ceiling for all CPF-liable wages: S$102,000
- Additional Wage (AW) ceiling = S$102,000 − OW contributed in the year
- Maximum AW ceiling for someone earning S$8,000+/month: S$6,000
- OW ceiling phased in from S$6,800 (Sep 2023) to S$8,000 (Sep 2025)
- Ceiling applies equally to employer and employee contributions
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All figures are sourced from the CPF Board. Salary ceilings may be revised. Always verify with the official CPF Board website for the most current information.