The CPF wage ceiling is the cap on how much of your pay attracts CPF contributions. In 2026, the Ordinary Wage ceiling is S$8,000 a month, and total wages subject to CPF are capped at $102,000 a year. Bonuses are covered by a separate Additional Wage ceiling, and the CPF Annual Limit of $37,740 caps what can go into your three accounts in a year.
If you earn less than $8,000 a month and your bonus is modest, none of this bites. If you earn more, it decides how much of your pay and bonus you take home.
The CPF Wage Ceilings and Limits at a Glance
| Limit | 2026 figure | What it caps |
|---|---|---|
| Ordinary Wage ceiling | $8,000 a month | Monthly salary that attracts CPF |
| CPF annual salary ceiling | $102,000 a year | Total wages, salary plus bonus, that attract CPF |
| Additional Wage ceiling | $102,000 less Ordinary Wages subject to CPF for the year | Bonuses and other additional wages that attract CPF |
| CPF Annual Limit | $37,740 a year | Compulsory and voluntary contributions to your three accounts |
Sources: CPF Board’s 2026 contribution tables and Additional Wage ceiling examples.
The Ordinary Wage Ceiling: $8,000 a Month
Ordinary Wages are your regular monthly pay. Only the first $8,000 each month attracts CPF.
For an employee aged 55 and below, that puts a ceiling on the monthly contribution:
- Employee share: 20% of $8,000 = $1,600.
- Employer share: 17% of $8,000 = $1,360.
- Total: $2,960.
Someone earning $8,000 and someone earning $15,000 both have $1,600 deducted. The higher earner keeps all of the extra $7,000 as take-home pay, and the employer pays no CPF on it.
The $8,000 figure took effect on 1 January 2026. It was the last of four planned steps, from $6,000 before September 2023 to $6,300, then $6,800 in 2024, $7,400 in 2025 and $8,000 in 2026.
Each step meant a little less take-home pay and a little more CPF for those earning above the old ceiling. At $8,000 or more, the employee share is $120 a month higher in 2026 than under the 2025 ceiling of $7,400.
The Additional Wage Ceiling: How Bonuses Are Treated
Additional Wages are payments not made wholly for one month, such as an annual bonus or a 13th-month payment.
They attract CPF at the same rates as salary, but only up to this ceiling:
$102,000 less your total Ordinary Wages subject to CPF for the year.
The ceiling is worked out per employer, per calendar year. Three illustrative employees aged 55 and below show how different the result can be.
| Monthly salary | Ordinary Wages subject to CPF | Additional Wage ceiling | Bonus | Bonus subject to CPF | |
|---|---|---|---|---|---|
| A | $4,500 | $54,000 | $48,000 | $13,500 | $13,500 |
| B | $6,000 | $72,000 | $30,000 | $36,000 | $30,000 |
| C | $10,000 | $96,000 | $6,000 | $30,000 | $6,000 |
Employee A pays CPF on the whole bonus: $2,700 from her, $2,295 from her employer.
Employee B has a bonus larger than his ceiling. CPF is due on $30,000 of it: $6,000 from him and $5,100 from his employer. The last $6,000 of bonus is paid with no CPF deducted.
Employee C earns above the monthly ceiling, so only $6,000 of his bonus attracts CPF: $1,200 from him and $1,020 from his employer. The other $24,000 is paid in full.
The short version: CPF is charged on the first $8,000 of monthly salary and on total wages up to $102,000 a year. Earn above $8,000 a month all year and only $6,000 of your bonus attracts CPF. The $37,740 Annual Limit caps everything going into your three accounts.
Why your employer may adjust it later
The ceiling depends on your Ordinary Wages for the whole year, which are not known when a bonus is paid in March.
CPF Board tells employers to estimate the ceiling at each bonus payment, then recalculate in December or in your last month of employment. If your salary rose during the year, your ceiling shrinks and excess contributions are refunded. If you leave mid-year, your ceiling grows, and your employer may need to pay CPF on bonus that was earlier treated as exempt.
That is why a final payslip can show a CPF deduction that looks too large.
The date that counts is when the bonus is due and payable. A 2025 bonus paid in 2026 uses the 2026 ceiling.
The CPF Annual Limit: $37,740
The Annual Limit is the most that can go into your Ordinary, Special and MediSave Accounts in a calendar year from compulsory and voluntary contributions combined.
The figure is 37% of $102,000. An employee aged 55 and below who earns $102,000 or more therefore reaches the limit through compulsory contributions alone.
It matters most in three cases.
Voluntary contributions. If you want to add to all three accounts voluntarily, your room is $37,740 less the compulsory contributions for the year. Someone whose compulsory contributions total $22,200 has room for $15,540.
Self-employed people. The same limit caps their compulsory MediSave and voluntary contributions. See CPF for the self-employed.
More than one employer. Each employer applies the ceilings to its own wages, so combined contributions can pass the limit. CPF Board has a process for dealing with excess contributions. Check your yearly statement and ask CPF Board if you think this applies.
Cash top-ups to your Special or Retirement Account, and to MediSave, fall under different rules and limits. They are covered in cash top-ups versus OA-to-SA transfers.
What the Ceilings Mean for High Earners
Your effective CPF rate falls as your pay rises. On a $16,000 monthly salary, the $1,600 employee share is 10% of pay, not 20%.
Your CPF stops growing with your pay. Past $102,000 a year, a raise adds nothing to your CPF. Retirement savings on income above the ceilings have to be built elsewhere. One option with tax relief is the Supplementary Retirement Scheme.
Your tax relief is capped too. The relief you receive for your compulsory employee contributions follows the same ceilings, so it does not grow with a pay rise either. Our income tax calculator shows the effect.
Your payslip varies in bonus months. A bonus within the ceiling has 20% deducted. A bonus above it does not. The take-home pay calculator handles both.
What To Do Next
- If you earn above $8,000 a month, check that the employee deduction on your payslip is $1,600, or the lower figure for your age band.
- Before bonus season, work out your own Additional Wage ceiling: $102,000 less twelve months of Ordinary Wages, each capped at $8,000.
- If you changed jobs this year, expect each employer to apply the ceilings separately, and review your yearly statement.
- Look up the rates for your age in CPF contribution rates for 2026 and 2027.
- Check CPF Board’s website each January for any change to the ceilings.
- For the bigger picture, see CPF strategies by age.
