In Singapore, if your gross annual salary is $60,840, or $5,070 per month, the total amount of taxes and contributions that will be deducted from your salary is $14,177.
This means that your net income, or salary after tax, will be $46,663 per year, $3,889 per month, or $897 per week.
Our Singapore salary calculator makes a few assumptions for ease of use, such as that you aren't married and have no dependents, and that you've been a resident of Singapore for at least three years. This means that you may actually pay less in taxes after all tax credits, deductions and allowances applicable to your situation are taken into account.
For a gross annual income of $60,840, our tax calculator projects a tax liability of $1,181 per month, approximately 23% of your paycheck. The table below breaks down the taxes and contributions levied on these employment earnings in Singapore.
|Total Tax Due||$14,177||$1,181||$273|
The average (median) annual salary for full-time employed residents in Singapore is $60,840, or $5,070 per month, according to the latest figures from the Statistics Department of Singapore's Ministry of Manpower. If we input this amount into our salary calculator, we get a monthly after-tax salary of $3,889 for Singapore tax residents.
It's important to note that these figures include the employer's CPF contributions. This means that the actual salary the average employee can expect in Singapore will be lower, since the CPF contributions paid by employers can go up to 17% of the gross salary (capped at $6,000 per month) and 17% of any bonuses.
Singapore does not have a national minimum wage. Instead, wages for workers in certain sectors must follow government-mandated rates, while salaries for foreign nationals must meet specific minimum requirements, depending on the type of work permit. For example, foreign employees on an S Pass have to earn a minimum of $3,000 per month, or $36,000 per year.
The S Pass permit is granted to mid-level skilled workers that meet the eligibility criteria. Highly skilled professionals will usually hold an Employment Pass, which mandates a minimum gross salary of $5,000 per month, or $60,000 per year.
Salaries in certain industries are regulated under Singapore's Progressive Wage Model (PWM) established by a committee of representatives from the government, unions, and large employers. As of March 2023, PWM sectors include: food service, retail, cleaning, security, and landscaping.
Singapore distinguishes between tax residents and non-residents. Residents are taxed at a progressive rate between 0% and 22%, and must also contribute to the Central Provident Fund (CPF). Non-residents must pay either a 15% flat rate on their employment income or the progressive resident tax rate, whichever is higher, and also a 22% flat rate on income additional to their wages.
Tax residents, as defined by the Inland Revenue Authority of Singapore (IRAS), are:
- Singapore citizens or permanent residents who live in Singapore except for temporary absences, such as vacations.
- Foreigners who have lived or worked in Singapore for at least 183 days in the last year or continuously for the last three years (business trips, overseas vacation leave, weekends, and public holidays count toward those 183 days).
- Foreigners who have worked in Singapore over a continuous period spanning two years with a total period of stay of at least 183 days (this doesn't include directors of companies, public entertainers, or independent professionals).
Most individuals living in Singapore are required to file income taxes. You may be selected for the No-Filing Service (NFS), which means your employer and supplementary retirement scheme (SRS) operator will tell the Inland Revenue Authority of Singapore (IRAS) your earnings and SRS withdrawals. The IRAS will then pre-fill this information so you don't have to file a tax return.
If you aren't selected for the NFS and still need to file income tax, Singapore residents and non-residents can e-file on the IRAS website. E-filing is open from March 1 to April 18 of every year. You can also paper-file by completing tax forms and sending them to the IRAS by April 15.
Our take-home pay calculator includes the two main taxes levied by the Singapore government on employment earnings: income tax and CPF contributions. For simplicity, we assume users have been Singapore Permanent Tax Residents for at least three years. This means that taxes are calculated using the lower tax resident rates, rather than the higher non-resident rates. In contrast, this also means that the applied CPF contributions rates are higher.
- Income Tax: Singapore residents are taxed at a gradual rate between 0% and 22%. There are 11 tax brackets: the first bracket is for income up to $20,000 per year, and is not taxed, the next bracket is for income between $20,000 – $30,000 and is taxed at 2%, income from $30,000 to $40,000 is taxed at 3.5%. Starting from $40,000, there are eight more tax brackets for each successive $40,000 of annual income, topping out at 22% for any income above $320,000. Meanwhile, non-residents are taxed at a 15% flat rate or the progressive resident tax rate, whichever is higher. Non-residents also pay a 22% flat rate on income additional to their normal salary.
- Central Provident Fund (CPF): The CPF is Singapore's social security savings scheme, which is funded by employers and employees. Only permanent tax residents are required to make CPF contributions, and the rates are based on the number of years as Singapore Permanent Resident (SPR) and the taxpayer's age. For example, from the third year of SPR status, employees aged 55 or younger with a monthly salary over $750, must pay 20% of their ordinary wages (capped at $6,000 per month) and 20% of any additional wages, like performance bonuses. At the same time, employers are required to contribute 17% of ordinary wages (capped at $6,000 per month) and 17% of additional wages.