Personal Finance
Yes, CPF takes 20% of your Monthly Salary, BUT….
By Investment Stab  •  May 14, 2017
A lot of people have the misconception that the Central Provident Fund (CPF) takes away 20% of your salary every month. While that is true, there is more to that than just what it seems like. There are a few things you should know about this 20% "pay cut". Recommended Post: Singapore Retirement, Re-Employment, CPF Withdrawal Age 1) The amount that you give actually decreases as you age At the start, your contribution rate is 20% of your monthly salary As you grow older, the percentage of your salary CPF takes decreases. Source: CPF Board 2) There is a cap to your salary contribution! Yes, there is a limit to how much you can INVOLUNTARILY contribute to your CPF. Currently, the limit is set at $6,000. If you earn $6,000 or less, your contribution rate is 20%. Meaning you only contribute $1,200 to your CPF. However, if you earn more ......
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By Investment Stab
We are a group of Singaporean students who are curious and interested in Finance. As we dive deeper into this area in search of more knowledge, the more debates and differences we have. We also realised that financial literacy is not strongly inculcated in the younger generations, leading to numerous costly mistakes. Some of such includes believing in "high profiting" scams such as land banking and buying unnecessary investment schemes which are often motivated by the salesperson's personal interest ...
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