- Wages that are due or granted to an employee (wholly and exclusively) with respect to that employee's employment for the month.
- Wages that are payable before the due date for payment of CPF contributions for that month. (14th of every month).
- Examples of this would be Monthly Basic Salary and Fixed Allowances.
The amount of Ordinary Wages that attract CPF contributions each month is capped at $6,000.
- Wages not granted wholly and exclusively for the month - made at intervals of more than a month.
- Examples of AW would be Annual Bonus, Leave Pay, Commissions.
The amount of CPF contributions payable on AW is capped at $102,000 minus the total ordinary wages subject to CPF for the year. (Additional Wage Ceiling)
This Additional Wage ceiling is applied anew for each new employer in a year.
In Talenox, the pay items chosen and keyed into payroll are automatically categorised into Ordinary and Additional Wages accordingly. Generally, these are the classifications:
Monthly Payment/Deduction tab pay items
- All pay items under this tab are grouped as Ordinary Wage.
Ad Hoc Payment/Deduction tab pay items
- Pay items like Allowance, Deduction, Housing/Rental Allowance, Meal Allowance and Tips are all considered Ordinary Wage.
- Every other pay item under this tab are categorised under Additional Wage.