February 27th, 2010 at 11:09 am Hitting the limit is a function of how many months of your bonus did you receive and your salary. The $22,500 figure is based on 5-month of $4,500 principle. If you work in an industry with 12-month bonus of $3,000, you will hit the limit. Howevever, if your work only has a 2-month bonus (including AWS), but your salary is $10,000, you will still be able to stay within the limit. This subtlety can make a difference to your CPF portion of your salary, when trying to assess the total package. I first knew this when I became a self-employed contractor and wanted to mimic CPF contributions as the policy. Realized I didn’t get the best deal when I started computing!
Full article: http://www.salary.sg/2010/cpf-bonus-contribution-cap/