Wages

For computing CPF contributions, the term 'wages' refers to all remuneration in money due or granted to an employee in respect of his employment. This includes overtime pay, allowances, cash awards, commissions and bonuses. Basically, wages can be classified as follows:

Ordinary Wages Ordinary wages are wages due or granted in respect of employment and include allowances (e.g. food allowance and overtime payments) earned by an employee in the month and payable before the due date for payment of CPF contributions for that month.

Additional Wages Additional wages are wage supplements which are not granted wholly and exclusively for the month, such as annual bonus and leave pay. These and other incentive payments may be made at intervals of more than a month.

Total Wages The total amount of an employee's wages for any calendar month means the sum of his ordinary wages for that month and additional wages paid to him in that month.

Wages Not Paid Monthly Where wages are not paid according to the calendar month, an employer is required to apportion the wages according to the calendar month on which CPF contributions are computed.