13th Month AWS is subjected to CPF? - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > CPF (Central Provident Fund)

CPF (Central Provident Fund) All about OA, SA, MA and RA, and strategies to optimize your CPF




13th Month AWS is subjected to CPF?

Reply
 
Thread Tools
  #1 (permalink)  
Old 01-01-2021, 01:01 AM
Verified Member
 
Join Date: Dec 2015
Posts: 15
tpj2000 is on a distinguished road
Default 13th Month AWS is subjected to CPF?

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

Reply With Quote
  #2 (permalink)  
Old 01-01-2021, 01:51 AM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by tpj2000 View Post
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.

Reply With Quote
  #3 (permalink)  
Old 01-01-2021, 01:54 AM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Unregistered View Post
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.
youve said a lot but never answer why discrepancy of 200

Reply With Quote
  #4 (permalink)  
Old 01-01-2021, 02:02 AM
Unregistered
Guest
 
Posts: n/a
Default

11400 is correct

After cpf, your bonus is
7k*0.8=5.6k

Plus your usual 5.8k
So 5.6k + 5.8k=11.4k


The 200 apparent loss in cash is good for you
Coz you got 200more in cpf and your employer lan lan must pay that 17% or $34
So end up your cpf got $234

Further more cpf has tax relief. So you end up paying lesser income tax than if you are paid that $200 in cash


Case study

Consider tom,
Tom pay is 8500 per month with zero bonus. Making a total of 102000
So each month his cpf
Is 6000 ow cap * 0.2 = 1200
His take home pay = 8500-1200= 7300
So one year 7300*12 =87,600 in cash


Consider mary
Mary pay is 6000 per month with 30k bonus, making a total of 102000
Mary take home pay 102000*0.8=81,600


So u can see 6k cash difference. But cpf is worth it coz employer kenna forced pay their 17%
You avoid tax
Reply With Quote
  #5 (permalink)  
Old 01-01-2021, 02:08 AM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Unregistered View Post
youve said a lot but never answer why discrepancy of 200
Can understand?
All your bonus go to the additional wage as long as your bonus dont hit 30k
Can count or nottttt...

Nowadays youngster quite cmi
Lack basic arithmetic skills
No wonder all kenna scammed
Reply With Quote
  #6 (permalink)  
Old 01-01-2021, 02:13 AM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Unregistered View Post
youve said a lot but never answer why discrepancy of 200
Your original qn nv ask why there is a discrepancy of $200
You asked is your bonus considered additional wage and how is it calculated.

So i already answered

Anyway i also already answered your $200 discrepancy in the previous reply

U sure your pay 7k?
Coz 7k usually can count.
Reply With Quote

  #7 (permalink)  
Old 01-01-2021, 09:43 AM
Verified Member
 
Join Date: Dec 2015
Posts: 15
tpj2000 is on a distinguished road
Default

Thank you for the details - it is as per suspected. (btw I just saw this; I am the real TS)

Quote:
Originally Posted by Unregistered View Post
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.
Reply With Quote
  #8 (permalink)  
Old 01-01-2021, 11:05 AM
Verified Member
 
Join Date: Dec 2015
Posts: 15
tpj2000 is on a distinguished road
Default

Just ask additional question: the CDAC $3 per month is the same for December right, even with AWS, it is $3 right?
Reply With Quote
  #9 (permalink)  
Old 01-01-2021, 04:52 PM
Junior Member
 
Join Date: Oct 2016
Posts: 8
pandemonium is on a distinguished road
Default

Quote:
Originally Posted by tpj2000 View Post
Just ask additional question: the CDAC $3 per month is the same for December right, even with AWS, it is $3 right?
CDAC depends on the gross wages of the month.
Refer to this: https://www.cdac.org.sg/contributor-information/

Gross wages for the month includes AWS or any other bonuses or one-off payment.
Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
should I switch job for another after a month kenzo Income and Jobs 3 22-08-2018 08:44 PM
Quitting a new job after 1 month muhdandika Income and Jobs 5 07-06-2018 09:12 AM
How much are you earning per month? undecided2012 Income and Jobs 5 15-11-2017 06:43 PM
Getting last month salary from employer qatar123456 Income and Jobs 0 29-09-2017 04:28 PM
resigning after 1 month of service samantha_wong Income and Jobs 12 11-12-2014 11:43 PM

» 30 Recent Threads
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
5,343 Replies, 3,949,804 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
5,504 Replies, 3,133,809 Views
Compare civil service salary ( 1 2 3... Last Page)
15,527 Replies, 11,058,358 Views
MOM(ACE) offers good career... ( 1 2 3... Last Page)
103 Replies, 49,834 Views
Lawyer Salary ( 1 2 3... Last Page)
19,543 Replies, 8,744,833 Views
Hospital (Private or Public)... ( 1 2 3... Last Page)
445 Replies, 212,253 Views
How is life as a doctor in... ( 1 2 3... Last Page)
5,541 Replies, 2,669,922 Views
Career as Teacher ( 1 2 3... Last Page)
8,524 Replies, 5,198,654 Views
SingPost (Singapore Post)
5 Replies, 3,206 Views
How much are you earning per annum? ( 1 2 3... Last Page)
14,074 Replies, 6,024,550 Views
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
10,527 Replies, 3,822,012 Views
MAS for Mid Career Professionals ( 1 2 3... Last Page)
1,514 Replies, 795,300 Views
IMDA (under MCI) ( 1 2 3... Last Page)
609 Replies, 314,588 Views
ITE (lecturer) ( 1 2 3... Last Page)
265 Replies, 325,159 Views
GovTech ( 1 2 3... Last Page)
3,837 Replies, 1,451,598 Views
CSA (Cyber Security Agency) ( 1 2 3... Last Page)
733 Replies, 360,101 Views
NCS (SingTel subsidiary) ( 1 2 3... Last Page)
1,188 Replies, 900,175 Views
Career as SIA Overseas Scholar
9 Replies, 929 Views
DBS tech seed programme ( 1 2 3... Last Page)
3,120 Replies, 1,134,412 Views
Factual Local Bank Salaries - DBS... ( 1 2 3... Last Page)
1,196 Replies, 950,570 Views
Tech bros...how is your market... ( 1 2 3... Last Page)
55 Replies, 9,878 Views
Roles in accenture singapore ( 1 2 3... Last Page)
6,424 Replies, 1,755,307 Views
Civil Service Performance Bonus ( 1 2 3... Last Page)
4,755 Replies, 3,973,730 Views
ITE Polytechnic Scheme ( 1 2 3... Last Page)
249 Replies, 279,948 Views
Shopee fresh grad pay ( 1 2 3... Last Page)
897 Replies, 314,516 Views
Work culture in IHiS ( 1 2 3... Last Page)
465 Replies, 364,709 Views
Management Consultant MBB Big4 etc... ( 1 2 3... Last Page)
264 Replies, 151,116 Views
Band 4 and Band 5 in Standard... ( 1 2 3... Last Page)
59 Replies, 129,368 Views
Civil/Public Sector -... ( 1 2 3... Last Page)
423 Replies, 348,555 Views
AML/Compliance/KYC professionals... ( 1 2 3... Last Page)
1,804 Replies, 1,099,803 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 06:15 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2023, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2