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Singapore Budget - Overview of Tax Changes

To simplify the illustrations, the scenarios are based on the following assumptions:

  • Employees are aged 50 years old or below
  • CPF contribution rate is 34.5%

Scenario 1 – Employer A

a) Employer A has 3 Singaporean employees. Table 1.1 shows the record of Employer A’s CPF contributions for his employees.


11 
Table 1.1: Monthly CPF Contributions by Employer A

b) Based on the CPF contribution rate of 34.5%, the employees’ monthly wages are re-grossed as follows:

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Table 1.2: Monthly Wages of Employees

c) As the figures in Table 1.2 show that the employees’ monthly wages are below the $2,500 wage limit, the total Jobs Credit Employer A will receive is $1,408.68

.
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Table 1.3: Applying 12% on Employees’ Monthly Wage (capped at $2,500 wage limit)

Scenario 2 – Employer B

a) Profile of Employer B’s employees:

Assumptions:

Employee 1 – On No Pay Leave from Dec 08 onwards
Employee 2 – Permanent Resident
Employee 3 – Joined company on 1 Dec 08
Employee 4 – Resigned from company on 31 Dec 08

CPF contribution rate is 34.5%

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Table 2.1: Monthly CPF Contributions by Employer B
*Employer B should include Employee 1 in the Jan 09 CPF returns as employees on No Pay Leave are eligible.

b) Using the CPF contribution rate of 34.5%, the employees’ monthly wages are re-grossed as follows:

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Table 2.2: Monthly Wages of Employees

c) The Jobs Credit that Employer B can receive is $1,121.76, as calculated below.

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Table 2.3: Applying 12% on Employees’ Monthly Wage (capped at $2,500 wage limit)

 

Last Updated on 30 September 2011


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