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Additional Wage "refreshes" when joining a new company.
Additional Wage "refreshes" when joining a new company.

If Additional Wage (AW) ceiling is maxed in the previous company for the year, how to deal with AW when the employee joins a new company?

Gordon Ng avatar
Written by Gordon Ng
Updated over 3 years ago

Additional Wage (AW) is computed per employer per year. The limit will "refresh" when they join a new company in the same year. You can refer to: https://www.cpf.gov.sg/Assets/employers/Documents/ExamplesonAdditionalWageCeilingComputation.pdf. 


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Here's an example of how it works:
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In 2017, Employee A hits total ceiling (Ordinary Wage (OW) + AW) of $102,000 in Company A by Sep 2017.  Then he left the company.
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In Oct 2017, he joined Company B.  His AW ceiling for Company B in 2017
= [$102,000 - (OW ceiling from Oct to Dec 2017)].

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Do note that official Additional Wage Ceiling Calculator is not real time and it doesn't project the Ordinary Wage (OW) ceiling for 12 months. 😁

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