After the announcement of the CPF Ordinary Wage ceiling increment on September 1, 2023, the Ordinary Wage ceiling will be raised from $6,000 to $8,000 by 2026. This increase will take place in four steps to allow adjustments for employers and employees. The second step of CPF Ordinary Wage ceiling increment will be effective from January 1, 2024.
This article provides you with all the essential information you need to know about this update, including how it affects your BrioHR payroll cycles and the updated CPF Ordinary Wage and annual salary ceilings from 2023 to 2026.
If you wish to read the article regarding the CPF Ordinary Wage ceiling increment effective September 2023, please refer to this article
What's Changing?
The CPF Ordinary Wage ceiling is increasing, which impacts the amount of CPF contributions you or your employees need to make.
How it Affects BrioHR Payroll?
You don't need to worry about making any manual adjustments in your BrioHR account, as BrioHR will automatically incorporate the new CPF Ordinary Wage ceiling during your payroll run. This means, you can continue to run payroll as usual without the need for any additional setup or configuration
Updated CPF Ordinary Wage and Annual Salary Ceilings:
Here is a summary of the CPF Ordinary Wage (OW) and annual salary ceilings from 2023 to 2026
Please note that the specific ceiling amounts may vary, and you should refer to the CPF Board's official website for the most up-to-date information.
*NOTE:
1. CPF annual salary ceiling of $102,000 remains unchanged, which sets the maximum amount of CPF contributions payable for all salaries received in the year, inclusive of both Ordinary Wages and Additional Wages.
2. The Additional Wage and CPF Annual Limit remain unchanged at [$102,000 - Total Ordinary Wage subject to CPF for the year] and $37,740 respectively.
Additional Resources:
For more detailed information regarding this update, including any changes in CPF contribution rates or guidelines, please visit the CPF Board's official website. Click on the link below to be directed to the relevant page:
Increase in CPF Ordinary Wage ceiling for 1 January 2024
If you have any further questions or require assistance, don't hesitate to reach out to our Support team via Live Chat, or email to support@briohr.com. We are here to help you navigate these changes and ensure a smooth payroll process.