Updated CPF Additional Wages Ceiling Calculations

Updated CPF Additional Wages Ceiling Calculations

5 December 2025

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The CPF additional wages (AW) ceiling calculation engine for Singapore has been updated to align with the Central Provident Fund (CPF) Board's revised methodology. This revision specifically impacts how ordinary wages (OW) are reserved for AW ceiling calculations and is based on examples provided on the CPF Sample Additional Wages webpage.

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The key changes to the CPF Estimated Additional Wage Ceiling Calculation include:

1. Recalculation of Estimated AW Ceiling: In each monthly pay run, the estimated AW ceiling will now be recalculated based on the current pay run's Fixed OW for future estimations.
2. Removal of Previous OW Reservation: The prior OW reservation mechanism, which was based on a higher limit in the payroll engine, has been removed to comply with the CPF Board's updated rules to lessen the excess CPF contributions.
3. Continued Support for Multiple Pay Runs: Our system will continue to support multiple pay runs within a month under the new CPF additional wage estimation rule.

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The updated calculation for the additional wage ceiling will take effect for pay runs created with a period ending date after December 31, 2025.

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If you have already created and finalised pay runs with a pay period ending date after 31/12/2025, our support team will contact you regarding the necessary next steps.

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For more information:

How Additional Wage (AW) Ceiling is calculated

Set employee Opening Balances (initial values)

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