Source: Singapore Central Provident Fund Board

From 1 September 2012, the CPF contribution rates for older workers aged above 50 to 65 years will be increased to help them better prepare for retirement. The increase in the CPF contribution rates does not apply to graduated employer and employee rates for first or second year Singapore Permanent Residents (SPR) and their employers.

Definition of Wages

For the purpose of computing CPF contributions, wages are classified as follows:

Ordinary Wages (OW) are wages due or granted wholly and exclusively in respect of an employee’s employment in that month and payable before the due date for payment of CPF contributions for that month.

Additional Wages (AW) are wages which are not granted wholly and exclusively for the month. Examples are annual bonus, leave pay, incentive and other payments made at intervals of more than a month.

Total Wages (TW) is the total amount of an employee’s wages for any calendar month is the sum of his Ordinary Wages for the month and the Additional Wages paid to him in that month. TW = OW+AW.

Source: CPF Board

Information is correct at time of publication.  For more information, please visit the Central Provident Fund Board website.