1. What is Net Salary Calculation?

The net salary calculation estimates take-home pay after deducting CPF contributions and income taxes in Singapore, following Ministry of Manpower (MOM) guidelines.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Gross Salary — Annual salary before deductions
• CPF — Central Provident Fund contribution (20% for Singaporeans/PRs)
• Taxes — Progressive income tax based on taxable income

Explanation: The calculation accounts for mandatory CPF contributions and Singapore's progressive tax rates.

3. Importance of Salary Calculation

Details: Understanding net salary helps with financial planning, budgeting, and employment contract negotiations in Singapore.

4. Using the Calculator

Tips: Enter gross annual salary in SGD, age, and citizenship status. The calculator will estimate CPF, taxes, and net salary.

5. Frequently Asked Questions (FAQ)

Q1: Why is CPF different for foreigners?
A: Foreign workers in Singapore don't contribute to CPF, while Singaporeans and PRs contribute 20% of wages.

Q2: Are tax rates accurate for all cases?
A: This uses standard progressive rates. Actual tax may vary with rebates, reliefs, or other income sources.

Q3: What about employer CPF contribution?
A: This calculator shows employee contribution only (20%). Employers contribute an additional 17% for Singaporeans/PRs.

Q4: How accurate is the monthly net salary?
A: Monthly figure divides annual net by 12. Actual monthly pay may vary with bonuses or other deductions.

Q5: Does this include other deductions?
A: No, this shows only CPF and tax. Other deductions (insurance, loans, etc.) would further reduce take-home pay.