If your employee resigns in the current year, the Additional Wages (AW) ceiling has to be recalculated based on the actual Ordinary Wages (OW) subject to CPF, paid up till the last month of employment. For more information, please view Examples (PDF, 0.6MB) on the computation of the AW ceiling.

You should then pay any shortfall in CPF contributions together with your employee's contributions for his last month of employment. If there are any excess CPF contributions, you should submit a refund application online.