facebookDoes gross income include employer's contributions to our CPF? - Seedly

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Anonymous

25 Jan 2021

Saving Hacks

Does gross income include employer's contributions to our CPF?

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..

Discussion (3)

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Zac

25 Jan 2021

Noob at Idiots Invest

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.

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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