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Is this good? 3500 base salary with 2400 housing allowance

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kijan.maharjan
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Is this good? 3500 base salary with 2400 housing allowance

Postby kijan.maharjan » Wed, 10 May 2017 2:51 am

I have 8 years of experience in web designing field, 5 years in web design and 3 years in project and product management. Recently, I got a job offer in the role of frontend programmer with the base salary of SGD 3500 and SGD 2400 for apartment. Company asked me to stay in their apartment which cost about SGD 2400. So my salary is now SGD 5900 according to gov rule and I will be getting SGD 3500.

1. Is this the good salary for 8 years experience in IT field in singapore?
2. Can i survive with SGD 3500 along with my wife ?
3. What is the tax amount I have to pay for SGD 5900?

Thank you.

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby PNGMK » Wed, 10 May 2017 9:37 am

IS the salary and housing allowance separate? How many people in the company house? Tax will be almost zero at that level (maybe $1000 at most per year). IT's ok you can survive here on that.
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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby bro75 » Wed, 10 May 2017 12:04 pm

You can survive, sure. But I am sure you want to live a bit more comfortably. You need to ensure that the 2.4K for the apartment provided by the company is really worth 2.4K. For 2.4K , you can have a whole 3 bedroom HDB apartment for yourself or a 2 bedroom condo. If your company puts you in an apartment with no facilities together with other people, then it is not worth 2.4K. It would be better for you take that 2.4K in cash and find your own apartment. Your tax rate is somewhere at about 4% for a declared salary of 5900. I am not sure if the salary is industry standard for your field.

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby x9200 » Wed, 10 May 2017 1:23 pm

kijan.maharjan wrote:I have 8 years of experience in web designing field, 5 years in web design and 3 years in project and product management. Recently, I got a job offer in the role of frontend programmer with the base salary of SGD 3500 and SGD 2400 for apartment. Company asked me to stay in their apartment which cost about SGD 2400. So my salary is now SGD 5900 according to gov rule and I will be getting SGD 3500.

1. Is this the good salary for 8 years experience in IT field in singapore?
2. Can i survive with SGD 3500 along with my wife ?
3. What is the tax amount I have to pay for SGD 5900?

Thank you.

Perhaps others have more data, but I would expect for a webdesigner, even with 8y of experience there would be heaps of locals able to do this job. In other words, I would stay prepared for some formal MoM troubles ahead.

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby kijan.maharjan » Wed, 10 May 2017 2:10 pm

PNGMK wrote:IS the salary and housing allowance separate? How many people in the company house? Tax will be almost zero at that level (maybe $1000 at most per year). IT's ok you can survive here on that.


Ya salary and housing allowance is separate. I will stay with my wife. None of the other employees will stay with me. I will get SGD 3500 cash a apartment. I don't have to pay for the apartment but to show to MoM or Gov. The salary is 5900 which also includes 2400 housing allowance.

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby kijan.maharjan » Wed, 10 May 2017 2:13 pm

bro75 wrote:You can survive, sure. But I am sure you want to live a bit more comfortably. You need to ensure that the 2.4K for the apartment provided by the company is really worth 2.4K. For 2.4K , you can have a whole 3 bedroom HDB apartment for yourself or a 2 bedroom condo. If your company puts you in an apartment with no facilities together with other people, then it is not worth 2.4K. It would be better for you take that 2.4K in cash and find your own apartment. Your tax rate is somewhere at about 4% for a declared salary of 5900. I am not sure if the salary is industry standard for your field.


I hope they will provide me with all the facilities because I'm will be staying with my wife only none of the other company employee will stay with me. I was thinking if I get 2400 in cash too I can find a cheap apartment to stay may be around 1000+ SGD

How do you calculate the tax amount per year?

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby kijan.maharjan » Wed, 10 May 2017 2:15 pm

x9200 wrote:Perhaps others have more data, but I would expect for a webdesigner, even with 8y of experience there would be heaps of locals able to do this job. In other words, I would stay prepared for some formal MoM troubles ahead.


I have a different role than webdesigner in this company. The role stated is frontend programmer but I will also have to do project management and some other stuffs as product manager. I'm not so sure what is the salary I should get for my job functionalities.

What are the formal MoM troubles? Can you give me some example questions or how should I prepare ?

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby x9200 » Wed, 10 May 2017 2:53 pm

MoM may simply reject the pass application if they think there are many locals that can do the job. If your long term experience is not really relevant to the new role, then this won't help neither.

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby bro75 » Wed, 10 May 2017 3:49 pm

kijan.maharjan wrote:
bro75 wrote:You can survive, sure. But I am sure you want to live a bit more comfortably. You need to ensure that the 2.4K for the apartment provided by the company is really worth 2.4K. For 2.4K , you can have a whole 3 bedroom HDB apartment for yourself or a 2 bedroom condo. If your company puts you in an apartment with no facilities together with other people, then it is not worth 2.4K. It would be better for you take that 2.4K in cash and find your own apartment. Your tax rate is somewhere at about 4% for a declared salary of 5900. I am not sure if the salary is industry standard for your field.


I hope they will provide me with all the facilities because I'm will be staying with my wife only none of the other company employee will stay with me. I was thinking if I get 2400 in cash too I can find a cheap apartment to stay may be around 1000+ SGD

How do you calculate the tax amount per year?


From iras website
https://www.iras.gov.sg/irashome/Indivi ... Tax-Rates/

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby ecureilx » Thu, 11 May 2017 8:41 pm

kijan.maharjan wrote:
I hope they will provide me with all the facilities because I'm will be staying with my wife only none of the other company employee will stay with me. I was thinking if I get 2400 in cash too I can find a cheap apartment to stay may be around 1000+ SGD

How do you calculate the tax amount per year?


your basic take home salary is 3,500 but declared as 5,900.

Which is cheating the system.

Next question ?



kijan.maharjan wrote:How do you calculate the tax amount per year?


if your declared salary is 5,900. You will have to pay tax based on 5,900. Good luck.

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby kijan.maharjan » Fri, 12 May 2017 12:45 am

ecureilx wrote:
kijan.maharjan wrote:
I hope they will provide me with all the facilities because I'm will be staying with my wife only none of the other company employee will stay with me. I was thinking if I get 2400 in cash too I can find a cheap apartment to stay may be around 1000+ SGD

How do you calculate the tax amount per year?


your basic take home salary is 3,500 but declared as 5,900.

Which is cheating the system.

Next question ?



kijan.maharjan wrote:How do you calculate the tax amount per year?


if your declared salary is 5,900. You will have to pay tax based on 5,900. Good luck.


Yes basic take home salary is 3,500 and declared as 5,900. 5,900 will be shown to Gov as well.

Am I qualify for EP? If I'm only eligible for S pass, Can my wife apply for DP?

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby Strong Eagle » Fri, 12 May 2017 2:18 am

You need to read about how provision of accommodations is taxed.

https://www.iras.gov.sg/IRASHome/Busine ... ts/#title4

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby x9200 » Fri, 12 May 2017 6:30 am

kijan.maharjan wrote:I have 8 years of experience in web designing field, 5 years in web design and 3 years in project and product management. Recently, I got a job offer in the role of frontend programmer with the base salary of SGD 3500 and SGD 2400 for apartment. Company asked me to stay in their apartment which cost about SGD 2400. So my salary is now SGD 5900 according to gov rule and I will be getting SGD 3500.

1. Is this the good salary for 8 years experience in IT field in singapore?
2. Can i survive with SGD 3500 along with my wife ?
3. What is the tax amount I have to pay for SGD 5900?

Thank you.

Please don't create multiple threads on the same topic.

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby ecureilx » Fri, 12 May 2017 7:44 am

kijan.maharjan wrote:Yes basic take home salary is 3,500 and declared as 5,900. 5,900 will be shown to Gov as well.

Am I qualify for EP? If I'm only eligible for S pass, Can my wife apply for DP?


if your employer tells MOM your salary is 5,900, again, they are cheating the system.

If they truthfully declare your salary is 3,500 then your EP chances are iffy. You may struggle to get EP, and NO DP.

Strong Eagle wrote:You need to read about how provision of accommodations is taxed.

https://www.iras.gov.sg/IRASHome/Busine ... ts/#title4


there's a wee bit of problem.. OPs boss will declare the salary as 5,900, if I read correctly. In which case pay of 5900 is used to calculate Tax.

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Re: Is this good? 3500 base salary with 2400 housing allowance

Postby Strong Eagle » Fri, 12 May 2017 11:00 am

ecureilx wrote:
kijan.maharjan wrote:Yes basic take home salary is 3,500 and declared as 5,900. 5,900 will be shown to Gov as well.

Am I qualify for EP? If I'm only eligible for S pass, Can my wife apply for DP?


if your employer tells MOM your salary is 5,900, again, they are cheating the system.

If they truthfully declare your salary is 3,500 then your EP chances are iffy. You may struggle to get EP, and NO DP.

Strong Eagle wrote:You need to read about how provision of accommodations is taxed.

https://www.iras.gov.sg/IRASHome/Busine ... ts/#title4


there's a wee bit of problem.. OPs boss will declare the salary as 5,900, if I read correctly. In which case pay of 5900 is used to calculate Tax.


If they are actually providing him with a furnished place to stay, then there are specific IRAS provisions for declaring the provided accommodation as income. If the employer pays $2400 per month for the place and the employee pays nothing, then the employee must declare $2400 in income, hence $5900 is OK.


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