In 2025, the CPF Ordinary Wage (OW) ceiling will increase from $6,800 to $7,400. This update will affect how CPF contributions are calculated for both you and your employees. In this article, we’ll walk you through what this change means, how it will affect your BrioHR payroll cycles, and the updated CPF Ordinary Wage and annual salary ceilings.
What’s Changing?
The CPF Ordinary Wage ceiling will be raised, which will impact the amount of CPF contributions required from you or your employees.
How This Affects BrioHR Payroll
Good news! There’s no need to make manual adjustments in your BrioHR account. BrioHR will automatically update the CPF Ordinary Wage ceiling during your payroll runs. This means you can continue processing payroll as usual without any extra setup or configuration.
NOTE:
We’ll update the system in advance, so you’ll be able to view and apply these changes when processing the January 2025 payroll.
Updated CPF Ordinary Wage and Annual Salary Ceilings
Here’s a summary of the CPF Ordinary Wage (OW) and annual salary ceilings from 2023 to 2026:
- The CPF annual salary ceiling of $102,000 will remain unchanged. This is the maximum amount of CPF contributions payable for all salaries received in a year, including both Ordinary Wages and Additional Wages.
- There will also be no change to the Additional Wage ceiling and CPF Annual Limit. These will stay the same at [$102,000 – Total Ordinary Wage subject to CPF for the year] and $37,740, respectively.
Source: CPF Contribution Changes from 1 January 2025
NOTE:
The ceiling amounts may vary. For the most accurate and up-to-date information, always refer to the CPF Board’s official website.
Tip: What is the Additional Wage (AW) Ceiling?
The Additional Wage (AW) ceiling determines the amount of Additional Wages that attract CPF contributions. This ceiling is applied on a per-employer, per-calendar-year basis. It is calculated as follows:
$102,000 – Total Ordinary Wage subject to CPF for the year
To calculate the CPF payable on Additional Wages, you can use the Additional Wage Ceiling Calculator. For more details about AW and the AW ceiling, visit the CPF website.
Source: CPFB Additional Wage Ceiling
Additional Resources
For more detailed information, including any updates on CPF contribution rates or guidelines, visit the CPF Board’s official website. You can access the relevant page here: Increase in CPF Ordinary Wage Ceiling from 1 January 2025.
Need Assistance?
If you have any questions or require assistance, please reach out to our support team via live chat or email us at support@briohr.com.