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Salary / housing allowance split

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

Andy b
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Salary / housing allowance split

Postby Andy b » Tue, 19 Apr 2011 12:52 am

Hi,

The figures are just for an example only.

If a job offer states

Monthly salary - S$10000
Monthly housing up to S$3500
Bonus - maximum if 3 months.

Does this mean I would actually get paid S$13500 per month and the housing / salary split is for tax reasons and I pay the rent out of my collective earnings?

Does this mean I would get paid S$10000 per month and if my rent was S$3000 my employer would cover it?

Does this mean I would get paid S$10000 per month and if my rent was S$3000 my employer would cover it and i would keep the remainder?

Would the bonus be based on basic salary or collective?

Just trying to under stand the nature of the offer.

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Mad Scientist
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Re: Salary / housing allowance split

Postby Mad Scientist » Tue, 19 Apr 2011 4:21 am

Here is my 2 cents. The devil is in the details in specific terms

Andy b wrote:Hi,

The figures are just for an example only.

If a job offer states

Monthly salary - S$10000
Monthly housing up to S$3500
Bonus - maximum if 3 months.

Does this mean I would actually get paid S$13500 per month and the housing / salary split is for tax reasons and I pay the rent out of my collective earnings?

If you are paid $13,500 per month means you will pay tax on that amount per se combine. If it is split, the company can put that housing allowance under company monthly expenses which will reduce their taxable income.

Does this mean I would get paid S$10000 per month and if my rent was S$3000 my employer would cover it?

If the above is the case then your tax is only on the $10K income. The employer will cover the the rent directly to the lanndlord

Does this mean I would get paid S$10000 per month and if my rent was S$3000 my employer would cover it and i would keep the remainder?

Depends on the contract if it specifically states that the housing allowance is provided and payable to you, then if you locate a rental housing less than that amount, you have the right to keep the remainder OR if you cannot locate anything lower than that , the difference will be out of your pocket. For an instance, you prefer to be in the buzz and nightlife and the areas around there will be definitely higher than the housing allowance. Hence this is by your choice not that the housing allowance is not sufficient.
What I used to do is give them separate package i.e pay , housing and transport. Pay will commensurate with performance, company bottomline and yearly profit. Housing and transport is fixed based on the current property price and transport is based on rental car against owning a car against taxi against petrol price. For petrol price if employee opted for renting a car or owning one is calculated about 15% of the current petrol price payable. Car maintenance is borne by employee.
For taxis, receipt is required OR we provide a fix taxi allowance.
Again it all depends on the job nature. You cannot compare sales manager to a factory manager where one will travel so very often compare to the other.
Micro managing this is the job of HR and accounts
I stressed again the devil is in the contract and it has to be specific on these areas of contention


Would the bonus be based on basic salary or collective?

Depends on either the company is a unionised or has an agreed AWS or a set target for you

Just trying to under stand the nature of the offer.
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

Andy b
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Postby Andy b » Tue, 19 Apr 2011 5:28 am

thanks

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Strong Eagle
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Postby Strong Eagle » Tue, 19 Apr 2011 7:54 am

More information on how personal taxes are computed.

Taxable Items

http://www.iras.gov.sg/irasHome/page04.aspx?id=2890

For in kind allowances

http://www.iras.gov.sg/irasHome/page04.aspx?id=1758


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