Additional Wage (AW) Ceiling - CPF contributions for the whole year

It took me a while to recall how to calculate the maximum amount of Additional Wage (AW) subject to CPF contribution for the year. As there are many changes in CPF for the next 3 years, I would like to pen down the information before I forget again.

The CPF Ordinary Wage ceiling had been increased in September 2023 and January 2024.

Hence, the total CPF contribution (37%) had been increased from S$2,220 to S$2,331 and S$2,516. It will continue to increase to S$2,738 in year 2025 and S$2,960 in year 2026. 

CPF Ordinary Wage ceiling is Singapore happy index. So, the new Singapore happy index will be S$8,000 a month. :)

The CPF annual salary ceiling remains unchanged at S$102,000. This is my bet, the CPF annual salary ceiling shall be increased in year 2026, let's see.

For year 2024, if your monthly salary is S$6,800 and above, the CPF system will automatically calculate in the following:

S$6,800 x 12 months = S$81,600

As CPF annual salary ceiling is S$102,000, you left the balance of:

S$102,000 - S$81,600 = S$20,400

The magic number S$20,400 is applicable to every CPF members if you earn monthly S$6,800 and beyond.

As my company always gives bonus in April, the maximum amount of Additional Wage (AW) that will attract CPF contribution will only be S$20,400. That says, even if your bonus is S$30,000 or S$50,000, it will still cap at the maximum CPF contribution at S$20,400.

S$20,400 x 0.37 = S$7,548 (maximum allowed additional wage CPF contribution) 

+ S$6,800 x 0.37 = S$2,516 (maximum allowed monthly CPF contribution)  

= S$10,064 (that's the maximum CPF contribution you see in the bonus month).

Thereafter, your 13th month bonus given in December will not attract any CPF contribution too!

In addition, you have reached the maximum tax relief of S$20,400 under personal reliefs category of Providend Fund/Life Insurance.

Some really useful information for references.

What is the impact to me for the CPF closure of Special Account (SA) at age 55 ?

My numbers are out.

With CPF Special Account (SA) force closed at the age of 55 and with "no CPF SA shielding", the impact for me would be:

(1) At my age of 65, liquidity dropped S$130K
(from S$1.28 million to S$1.15 million).

(2) At my age of 65, CPF balance dropped S$100K
(from S$1.9 million to S$1.8 million).

Well, we can always use CPF OA to buy DBS, SATS, SIA, Mapletree Industrial Trust.

I can also draw out the CPF OA monies to help my son to buy private property with no ABSD!

Be water!

Break S$1 million milestone in CPF balance (Happy New Year 2024!)

Woo Hoo!! Our CPF balance shot through S$1 million milestone for the first time on January 1st, 2024.

S$1,012,790.70

It does not reflect the true amount at CPF dashboard because we have CPF OA monies in T-bills, enjoying 3.95% P.A., total amount invested in T-bills are S$142,161.40 + S$156,850.70 = S$299,012.10. This amount is not shown in the CPF balance.

One T-bill will be matured on January 24, 2024 and two T-bills will be matured on April 30, 2024. 

By then, we will receive total amount of S$305,000. 

Total interest to be received S$5,987.90.

We have used CPF OA monies of S$100,349.25 + S$172,246.25 = S$272,595.50 for housing loans.

We top up our MA accounts every single year on January 1st to reach the new BHS figure, for the tax relief purpose.

BHS for year 2024 is S$71,500.

We continue to advocate CPF top up to child's CPF SA account and self 's MA account. 

JK Holdings: Age 1 baby has a CPF account too! Top up kid CPF SA account! (Revision 10)

It's great to see the compound interest effect at almost risk-free CPF account.

The national benchmarking:

The latest data (as of 31 December 2023) will only be published by CPF in July 2024.