The following are 3 frequently asked questions that we often encounter:
How do I calculate the AW Ceiling manually for an employee who joined mid-year?
What happens if the total bonuses paid exceed the AW Ceiling?
How should I handle CPF calculations for employees with fluctuating monthly wages?
If you're on the SUITE plan in Talenox, you can download the Additional Wage Ceiling Report under Payroll > Payroll Reports.
This report shows you how CPF contributions are calculated on bonuses (also known as Additional Wages or “AW”) based on the CPF Board’s official AW Ceiling formula.
Here’s how to manually check if CPF was correctly applied on your bonuses without needing support.
Step-by-Step: How to Read the Report
1) Open the Excel Report and Go to the “Additional Wage Ceiling” Tab
Look for these important columns:
Column Name | What It Means |
Projected OW | Projected Ordinary Wages (OW) for the year (capped monthly at $7,400 in 2025) |
AW Ceiling | CPF Board formula: $102,000 – Projected OW |
YTD AW Paid | Total bonuses/commissions paid so far this year |
AW Available for CPF | How much of your bonuses are still CPF-deductible |
CPF on AW | Amount of bonus in this month subject to CPF |
2) Apply the CPF Formula Yourself
AW Ceiling = $102,000 – Projected OW
Example:
Description | Amount (SGD) |
Projected OW | $88,800 |
AW Ceiling | $13,200 |
Bonus Paid So Far (Jan–Mar) | $6,000 |
April Bonus | $10,000 |
Step-by-step check:
Remaining CPF-deductible bonus = $13,200 – $6,000 = $7,200
CPF will be applied to $7,200
CPF will not apply to the remaining $2,800
If employee is <55 years old:
CPF = $7,200 × 37% = $2,664 total CPF
(Employee: $1,440, Employer: $1,224)
You can match this with the “CPF on AW” column in your report to confirm.
3) What Happens When the AW Ceiling is Reached?
Once AW Available for CPF = $0:
Any new bonuses will not attract CPF
This is expected and correct even for small bonuses
Notes
Talenox applies the CPF Board's official AW Ceiling formula and stops CPF automatically when the cap is reached.
As a PAYROLL or SUITE plan user, you can use the Excel report to:
Check how the AW Ceiling was calculated
See how much CPF was applied to each bonus
Confirm CPF accuracy without needing manual support
If you're unsure about the logic, you can refer to CPF Board's official AW Ceiling examples here: