First pay breakdown
Your first pay, your CPF and a few habits that last.
Curated by the MAS-licensed financial planners on the Sum team.
Your CPF, every month
Up to 55, you put in 20% of your pay and your employer adds 17%, on wages up to S$8,000 a month. Up to 35, that 37% goes about 23% to your Ordinary Account, 6% to Special and 8% to MediSave.
Your take-home pay
What lands in your bank is your pay less your 20% CPF. Your employer's 17% goes on top, straight to CPF.
A cushion first
3 to 6 months of spending
Three to six months of spending in cash you can reach within a day, built up before investing.
Basic cover
A hospital plan on top of MediShield Life is the usual first step. Life cover matters most once someone depends on your income.
Your first tax return
18 Apr filing deadline, each year
Income tax is filed once a year for the year before, by 18 April. The first S$20,000 of chargeable income isn't taxed.
IRAS myTax Portal, with Singpass.
Small and steady
A fixed amount each month into broad, low-cost funds, started early, gives time the most room to work. Card balances are cleared first: they cost about 27% a year.