Increase to CPF Ordinary Wage Ceiling
Last updated on 2 May 2023
Starting from 1 September 2023, the Central Provident Fund (CPF) Ordinary Wage (OW) ceiling will increase from the current S$6,000 per month to S$6,300 per month. The increase in OW ceiling be staggered over 3 years and eventually rise to S$8,000 per month from 1 January 2026. The increase is to keep pace with rising wages and ensure adequate retirement funds for Singaporeans and Singapore residents.
The quantum and dates of increase are shown in the table below.
For employees earning more than S$6,000 per month, employers should calculate their CPF contributions based on the new OW ceiling after 1 September 2023. As there will be no change to the CPF Annual Wage ceiling (S$102,000 per annum), the new OW ceiling may affect how the Additional Wages (AW) ceiling is calculated for 2023.
For example, for an employee earning S$6,500 per month, the OW and AW calculations would look like the following:
Some employers may have contributed to AW based on a higher AW Ceiling before the increase in OW. Employers who have overpaid the CPF contributions may apply for a refund for each affected employee.
To ensure your company complies with the current CPF contribution rates, you may outsource hr payroll services to a payroll services provider.
