Cost of an employee in Singapore (2026)
What an employee really costs an employer in Singapore: gross salary plus mandatory employer social contributions.
On a gross salary of SGD 5,775 per month in Singapore, an employer pays about SGD 6,757 in total once mandatory employer social contributions of 17% on top of the gross are included.
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How salary is taxed in Singapore
Income tax in Singapore is progressive: marginal rates rise from 2% to 24% as income grows.
Employees also pay social contributions of around 20% of gross salary.
The standard VAT rate is 9%.
| Annual taxable income | Tax rate |
|---|---|
| Up to SGD 20,000 | 0% |
| Up to SGD 30,000 | 2% |
| Up to SGD 40,000 | 3.5% |
| Up to SGD 80,000 | 7% |
| Up to SGD 120,000 | 11.5% |
| Up to SGD 160,000 | 15% |
| Up to SGD 200,000 | 18% |
| Up to SGD 320,000 | 20% |
| Up to SGD 500,000 | 22% |
| Up to SGD 1,000,000 | 23% |
| SGD 1,000,000 and above | 24% |
Frequently asked questions
What does it cost to employ someone in Singapore?
On top of the gross salary, an employer in Singapore pays mandatory social contributions. The total cost of employment is the gross salary plus those employer contributions.
Are employer contributions the same as salary deductions?
No. Employer contributions are paid by the company in addition to the gross salary, while employee deductions (income tax and social contributions) are taken out of the gross to leave the net take-home pay.
Employer-contribution rates are approximate and may be capped or vary by region and sector.
Approximate 2026 estimate. Simplified model, verify before relying on it. Not tax advice.
Rates updated June 2026