CPF Annual Limit - Do I consider the month the monies hit CPF account or salary month?

I am trying to estimate if I will hit CPF Annual Limit for calendar year 2021 before making any top up to SA (monthly salary exceed $6K). I am also include upcoming leave encashment and bonus in Dec 2021.

CPF says the maximum amount one can voluntarily top up is the difference between the CPF Annual Limit of $37,740 and the mandatory CPF contributions made for the calendar year.

Can I check if this goes by transactions in the calendar year? E.g Salary+bonus+leave encashment received for the month of Dec 2021 and contribution is credited to CPF account by mid Jan 2022. Do I include this in my estimation for CY2021 or is this considered in CY2022 since the amount will hit the account in Jan 2022.

Thank you.

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Tan Choong Hwee

10 Oct 2021

Solutions Specialist at Providend

If you are making top up to SA alone, you can go thru RSTU (Retirement Sum Top Up), which is not subjected to the annual limit of $37740, but capped by FRS ($186k this year) in SA. And you enjoy up to $7k of tax relief.

The annual limit of $37740 is applied to total MC (Mandatory Contribution from employment) and VC (Voluntary Contribution). Annual MC refers to Jan to Dec salary, which are credited in your CPF accounts from Feb to next year Jan. So, you exclude the contribution credited in Jan 2021, and include that in Jan 2022 for CY2021.

You may use CPF Contribution Calculator on CPF website:

https://www.cpf.gov.sg/eSvc/Web/Miscellaneous/C...

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