Question 1

Is income tax deducted from my Singapore salary each month?

Accepted Answer

No. Singapore has no monthly PAYE-style withholding for citizens and PRs. Income tax is self-assessed and paid the following year: you file a return, IRAS issues a Notice of Assessment, and you pay the amount due, usually by GIRO. So nothing is taken off your monthly pay for income tax.

Question 2

Why is my take-home just gross minus CPF?

Accepted Answer

Because for citizens and PRs, employee CPF is the only thing that leaves your pay each month. There is no monthly income tax, no separate health or unemployment levy on the payslip — just your CPF share. That is why the honest monthly figure is simply gross minus employee CPF.

Question 3

How is CPF split between employer and employee by age?

Accepted Answer

Both you and your employer contribute, and the split depends on your age band. In the youngest band (55 and below) the employee share is 20% and the employer share is 17%, for a combined 37%. The rates step down through five bands as you get older. Only your share reduces take-home; the employer share is paid on top of your wage into your CPF accounts.

Question 4

Do foreigners pay CPF?

Accepted Answer

No. Foreigners on an Employment Pass, S Pass or Work Permit pay no CPF, so their monthly take-home equals their gross pay. Income tax is still owed and settled annually — on the resident scale if they qualify as tax resident for the year, otherwise as a non-resident.

Question 5

What is the Ordinary Wage ceiling?

Accepted Answer

CPF is charged only up to a ceiling: S$8,000 of Ordinary Wage a month, and S$102,000 across the whole year. Wages above those ceilings carry no CPF, so both your CPF and your employer's CPF are capped, and pay above the ceiling reaches your take-home in full.

Question 6

What is the Skills Development Levy (SDL)?

Accepted Answer

A small levy your employer pays on top of wages — 0.25% of monthly wages, with a floor of S$2 and a cap of S$11.25 — for all employees, including foreigners. It funds workforce training. It is an employer cost and is never deducted from your take-home.

Question 7

Do new PRs pay full CPF in their first year?

Accepted Answer

No. New Permanent Residents contribute at lower graduated rates in their first and second year of PR before reaching the full rates. This calculator uses the full rates (citizens and PRs from their third year onwards) as its default, so a new PR should expect a lower CPF figure than shown.

Question 8

How is the annual income tax worked out?

Accepted Answer

On the resident progressive scale, after Earned Income Relief and CPF Relief, with a personal relief cap of S$80,000 on the total of all reliefs. The top marginal resident rate is 24%. It is an annual estimate, self-assessed and paid the following year — never a monthly deduction.

Question 9

Are the figures accurate?

Accepted Answer

The rates come from the CPF Board and IRAS, but they have not been through this site’s own sign-off, and the calculator cannot know your personal circumstances. Treat the result as an estimate, not an official determination.

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