Salary Increment in Singapore: Your Questions Answered
These are the questions people ask most often about salary increment. Each answer is short; follow the links for the full detail.
What does a salary increment calculation tell me?
Shows the new salary after a percentage raise and how much more you earn per year.
What is the formula?
New salary = current salary × (1 + increment ÷ 100).
What do I need to enter?
Current monthly salary (S$), Increment (%).
Are these figures exact?
They follow the published CPF and MOM formulas, but your employer's payroll may round slightly differently or include allowances in a different way. Your payslip is the final reference.
Can you show an example?
For example, with these inputs:
- Current monthly salary (S$): 4,500
- Increment (%): 5
the calculator returns:
- New monthly salary: S$4,725.00
- Monthly increase: S$225.00
- Annual increase (12 months): S$2,700.00
Any tips?
- Use your basic salary plus fixed allowances as the ordinary wage; bonuses are additional wages with their own ceiling.
- First- and second-year PRs contribute at graduated rates unless they opt in to full rates, so their figures will be lower.
- If you change jobs mid-year, the Additional Wage ceiling is calculated across all employers for the calendar year.
Background
The Central Provident Fund is Singapore's mandatory savings scheme for citizens and permanent residents. Contributions are shared between employee and employer and flow into the Ordinary Account for housing, education and investment, the Special Account for retirement, and MediSave for healthcare. Because the money is locked up for specific purposes, many people underestimate how much of their total pay it represents.
Payslips must be itemised, showing basic pay, allowances, overtime, deductions and CPF. Comparing a payslip against an independent calculation is the easiest way to catch mistakes, especially in the first month of a new job, after a pay rise, or when you cross an age band.
The Employment Act sets out how hourly and daily rates are calculated for overtime, public holiday work and salary deductions. These formulas use the monthly basic rate of pay rather than gross salary, which is why the numbers can look lower than a simple division of your salary by hours worked.
Related calculations
- CPF Allocation Calculator (OA, SA, MA): Shows how each month's 37% CPF contribution is split between your Ordinary, Special and MediSave accounts by age group.
- Overtime Pay Calculator (MOM): Uses the Ministry of Manpower formula to work out the hourly basic rate and overtime pay for employees covered by Part IV of the Employment Act.
- Monthly to Hourly Rate Calculator: Converts a monthly salary into the hourly rate MOM uses for overtime and deductions.
- Daily Rate of Pay Calculator: Finds the daily rate of pay used for public holiday work, rest days and unpaid leave deductions.
Try it yourself with the Salary Increment Calculator.
Run your own numbers: Salary Increment Calculator