Anonymous
How can I compute my voluntary CPF contributions accurately for a remote job offer?
Hi! I have a remote job offer that pays about SGD89,000 p.a. and I won't be getting any CPF contribution from them.
I've always been in a structured company environment where I get both employer and employee CPF contribution. How can I compute this accurately so that I can pump in the CPF portions of 37% myself? Are you even allowed to do that?
I am thinking of skipping the 17% employer portion and just doing the 20% employee. Anyone can enlighten the repercussions of it?
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Elijah Lee
06 Nov 2019
Senior Financial Services Manager at Phillip Securities (Jurong East)
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Hi anon, you will have to first see if your income is taxable.
https://www.iras.gov.sg/IRASHome/Individuals/Lo...
If it is not taxable, then strictly speaking, you will not have tax benefits even if you contribute CPF. You can still do so to beef up your OA,SA and MA.
I would take 89K and divide it by 1.17 to get the 'true' value of my income when compared to a job with regular CPF.
If you are going to be taxed, then you should make some contributions to reduce tax. It does not matter how much you contribute since you do not have Mandatory Contributions, the absolute amount you contribute will be given to IRAS from CPF board for tax purposes.