From gross to take-home
Your gross salary is never what you take home. First, your employee CPF (20% for those aged 55 and below, on wages up to $8,000 a month) comes out — but it qualifies for CPF relief, so it also lowers your chargeable income.
Then income tax applies on the IRAS scale, where the first $20,000 is tax-free. Your employer's CPF is paid on top and doesn't reduce your take-home.
Common questions
Your employee CPF contribution and income tax. CPF contributions qualify for relief, so they also lower your chargeable income and tax.
Your employer's CPF (17% for those 55 and below) is paid on top of your salary into your CPF — it doesn't reduce your take-home.
Yes. Employee CPF is calculated on wages up to the Ordinary Wage ceiling of $8,000 a month (from 2026).