Take a Singapore citizen earning S$90,000 a year, aged 55 or below. The employee CPF rate is 20 percent. Because the annual salary of S$90,000 is below the Ordinary Wage ceiling of S$96,000 (that is S$8,000 a month for twelve months), the full salary attracts CPF, so the employee contribution is S$18,000. Compulsory CPF is tax exempt, so it is removed before tax. That leaves chargeable income of S$72,000.
Resident tax on S$72,000 is S$2,790: nothing on the first S$20,000, S$200 on the next S$10,000 at 2 percent, S$350 at 3.5 percent, then S$32,000 at 7 percent which is S$2,240. Take-home pay is S$90,000 minus S$18,000 CPF minus S$2,790 tax, which is S$69,210 a year, or about S$5,768 a month. On top of this the employer adds 17 percent CPF, around S$15,300, which never appears in your salary and is not taxed.
Item
Amount
Gross salary
S$90,000
Less employee CPF (20%)
S$18,000
Less income tax
S$2,790
Net take-home pay
S$69,210
How it is calculated
Take-home pay starts from gross salary and removes two things. First, the compulsory employee CPF contribution: 20 percent for workers aged 55 and below, charged only on Ordinary Wages up to the S$8,000 monthly ceiling, so very high earners contribute on a capped base. Second, resident income tax, which is assessed on income after CPF because compulsory CPF is exempt. Tax itself is progressive, so the first S$20,000 is free and rates rise band by band. The employer also pays 17 percent CPF on top of your salary, but that is the employer’s cost, not part of your pay, and it is not taxed in your hands.
Frequently asked questions
Is CPF taxed in Singapore?
No. Compulsory employee CPF contributions are exempt from income tax, so they are excluded from your chargeable income. Your employer also contributes 17% on top, which is not part of your salary and not taxed. Only the income remaining after compulsory CPF is assessed for tax.
What is the CPF Ordinary Wage ceiling for 2025 and 2026?
The Ordinary Wage (OW) ceiling sets the maximum monthly wage on which CPF contributions are calculated. For 2025 it is S$7,400 per month and it rises to S$8,000 per month from 1 January 2026. This ceiling increase was announced by the CPF Board as part of a phased schedule running from 2023 to 2026. Wages above the ceiling in any month do not attract CPF on the excess.
What are the employee and employer CPF contribution rates for workers aged 55 and below?
For workers aged 55 and below, the employee contributes 20% of ordinary wages and the employer contributes 17%, giving a combined rate of 37%. These rates are set by the CPF Act and reviewed periodically. Workers aged 55 to 60 face a lower combined rate of 26%, and rates step down further for older age bands. The calculator applies the 20% employee rate and lets you toggle CPF on or off for non-residents or foreigners who do not contribute.
How does Singapore income tax work for residents?
Singapore resident individuals pay tax on a progressive scale set by IRAS. For Year of Assessment 2026, the first S$20,000 is taxed at 0%, the next S$10,000 at 2%, the next S$10,000 at 3.5%, the next S$40,000 at 7%, and higher bands continue rising up to 24% above S$1,000,000. Non-residents pay a flat rate of 15% or the resident rate, whichever is higher. Tax is assessed on chargeable income, which excludes compulsory CPF contributions and any eligible reliefs such as earned income relief or spouse relief claimed in the annual tax return.