Quote:
Originally Posted by tpj2000
Hi all, asking a noob question.
I just received my December payslip.
I am grossing at 7K.
So monthly, I am taking home 5800.
For Dec I am getting 7K + 7K (AWS) = 14K. I notice my payslip is having 11400 instead of 11600.
My question is 7K AWS subject to Ordinary Wage (OW) Ceiling OR Additional Wage (AW) Ceiling?
If AWS is considered Additional Wage (AW) Ceiling, then the AWS will be reduced by 20%.
If AWS is considered OW, how is calculated?
many thanks  |
Your 13th month will be aw
Essentially ow max is 6k per month.
Aw max is 30k per annum
Aw cap is counted per annum basis
Now your dec pay is 6k ow + 7k bonus
Your ow is cap at 6k for dec.
But your 7k bonus will fully attracts
cpf coz it is considered additional wage unless you hit the 30k bonus limit per year.
Your employer will also be forced to pay the employer contribution of 17% of the 7k.