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Salary : Basic, Net, gross, insurance, cpf/pension fund

Discuss about getting a well paid job or career advancement. Ask about salaries, expat packages, CPF & taxes for expatriate.

singindo
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Salary : Basic, Net, gross, insurance, cpf/pension fund

Postby singindo » Fri, 19 Feb 2010 9:35 pm

HI All,

I've been searching info on this forum, but i dont find it very clear.
Let's summarize this.

In most countries here are the terms:

Basic : means the take home pay fix amount
Net : means the take home pay of basic + overtime
Gross : Net + tax + CPF + insurance

Questions, please keep in mind if i am Employment Pass(EP) only
(Not PR/Singaporean):

If a company offers gross : 4000SGD per month.
How much the Basic salary would be?

Please explain it like, and please tell us more variables if any:
Basic = 4000 - tax(2%) - insurance(100SGD) - CPF (0 as i am EP only)

Thanks in advance guys :)

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Postby sundaymorningstaple » Fri, 19 Feb 2010 10:36 pm


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Re: Salary : Basic, Net, gross, insurance, cpf/pension fund

Postby sundaymorningstaple » Fri, 19 Feb 2010 10:42 pm

ftopic65825.html

singindo wrote:HI All,

I've been searching info on this forum, but i dont find it very clear.
Let's summarize this.

In most countries here are the terms: (Sure would like to know which countries you consider most. This is not one of them, neither is Aus, Canada, UK or the US)

Basic : means the take home pay fix amount Wrong. Basic is the amount quoted in your contract
Net : means the take home pay of basic + overtime Wrong. Net is the amount deposited into your bank account or actually given to you in cash.
Gross : Net + tax + CPF + insurance Wrong. Gross is the total Basic, Allowances, Overtime without regard to deductions.

Questions, please keep in mind if i am Employment Pass(EP) only
(Not PR/Singaporean):

If a company offers gross : 4000SGD per month. They wouldn't. They would offer you a Basic plus allowances and/or overtime.
How much the Basic salary would be? Cannot be figured out unless we know how much for allowances and overtime are included in what you call the Gross.

Please explain it like, and please tell us more variables if any:
Basic = 4000 - tax(2%) - insurance(100SGD) - CPF (0 as i am EP only)

Thanks in advance guys :)

singindo
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Here is the answer that people might to know.

Postby singindo » Fri, 26 Feb 2010 9:29 pm

In singapore, tax is paid by yourself, it is around 1% per year.

There is no mandatory medical insurance and pension fund for EP.

So your take home pay is same with your gross salary.

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Postby FaeLLe » Sat, 06 Mar 2010 5:14 pm

Income tax is now 8% for the lowest slab and upwards from there.
Where are you getting from 1-2% now?

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Postby sundaymorningstaple » Sat, 06 Mar 2010 6:15 pm

FaeLLe wrote:Income tax is now 8% for the lowest slab and upwards from there.
Where are you getting from 1-2% now?


Code: Select all

RATES OF TAX FOR YEAR OF ASSESSMENT 2010
Your chargeable income is the amount remaining after deducting from your assessable income the personal reliefs to which you are entitled. If you are a resident in Singapore, the rates of tax chargeable are as follows:
             Chargeable Income            Rate          Gross Tax Payable
                    $                       (%)                  $
On the first     20,000                       0                    0
On the next      10,000                     3.5                  350
On the first     30,000                                          350
On the next      10,000                     5.5                  550
On the first     40,000                                          900
On the next      40,000                     8.5                3,400
On the first     80,000                                        4,300
On the next      80,000                      14               11,200
On the first    160,000                                       15,500
On the next     160,000                      17               27,200
On the first    320,000                                       42,700
Above           320,000                      20    
 


I think what the poster is talking about is that the amount of tax works out to around 1~2% of taxable income. e.g., 30K taxable = $350 tax so 350/30000= 1.16% HOWEVER! If your taxable income is $320,000 the taxes are $42,700 42700/320000= 13.3% of taxable income

Of course if your taxable income is less than 20K then it $0.
Last edited by sundaymorningstaple on Mon, 03 May 2010 8:49 pm, edited 1 time in total.

pravnash
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More than 10% !

Postby pravnash » Mon, 03 May 2010 7:23 pm

Hey SMS

I think there's an error in your calculations.. 42700/320000 is 13.3% :)

Cheers
Trabajo para vivir, no vivo para trabajar !

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Postby sundaymorningstaple » Mon, 03 May 2010 8:47 pm

Damn those decimals! :cool:

I'm surprised you are the first one to catch it. Good one. Have edited decimals points! Ta!


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