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Anonymous
Been working almost 5 years now and I still can't figure it out. Slightly panicky now because my 2020 chargeable income, from what I see on Sing pass, just crossed $80k and I'm not sure how that figure came about..
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Zac
25 Jan 2021
Noob at Idiots Invest
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Kenneth Lou
25 Jan 2021
Co-founder at Seedly
Let's do this simple example!
Hope this can help...
Gross Income = $3,000
CPF Employee contribution (20%) = $600
Net cash Income = $3,000 - $600 = $2,400
Extra CPF Employer contribution (17%) = $510
You can use the CPF calculator here as well.
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JK
25 Jan 2021
Salaryman at Random Company
Gross Income is pre-CPF....
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Nope, Gross Income refers to your income before Employee CPF contribution.
You CPF grows because you put in money (20% of your salary) and your Employer puts in money (17% of your salary).
If you hit $80k chargeable income, but your monthly income is less than $80k/12, don't panic. Think of 13th month bonus, annual wage supplements and performance bonuses, if any. These all contribute to taxable income.
Example:
Monthly salary of $6k.
12 months' salary = $72k.
Add 13 month bonus, $72k + $6k = $78k.
You got 1 month performance bonus, $78k + $6k = $84k.
Boom, taxable income became $84k.