Why CPF on Ordinary wages being calculated, though 30000 ceiling already hit for additional wages?

Why CPF on Ordinary wages being calculated, though 30000 ceiling already hit for additional wages?

As per the last update in January 2022, the CPF contribution rates for OW and AW are different. The OW ceiling is the limit up to which CPF contributions are mandatory, while the AW ceiling is the limit for additional wages (such as bonuses and overtime) for CPF contribution calculation.
If an employee's total wages (including both OW and AW) exceed the CPF contribution ceiling, the employer is still required to contribute to the Ordinary Account (OA) and Special Account (SA) based on the OW, even if the AW has reached its ceiling.
The Ordinary Wage Ceiling is currently capped at $6,300. This means that the first $6,300 of your monthly salary is subject to CPF contributions. 
 

Product Version: SMEPayrollTM Version 11

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