If you have not seen any of these news about Singapore budget, then you must be living under a rock. Just kidding.. I was told not many are concerned as there will not be massive changes in the budget without prior hints.. So lets look at the budget and the key points captured my eyes were,
- CPF Enhancements: Increased the limit from current 5000/m to 6000/month. Which means I am expecting the limit to go 17 months including OW + AW ceiling. So instead of SGD 31,450 per annum, its going to be SGD 37,740. Or additional 6,290. Here 2,890 comes from Employer while the rest is from you. So you got a pay hike of ~250 from next year.
- Income tax: I hate this part to increase the rate and create complexity. Especially when the top bracket is paying 20%. If it goes higher then what exactly is the point of getting top talent here. Anyway to not to offend the 'mass sentiment' and to show robinhood policies I would go with it. If you are making 250,000 the MoF estimated that the difference is 400 (Source: Todayonline). Not sure how they ended up with 50,000 taken for deductions. The CPF is max 20,400, Earned Income - 1,000, Spouse Relief - 2,000 (if your spouse is not working), Kids - 8000 (2x 4000) and this makes it max 32,000. I don't think an average person can claim relief of 50,000 but more in to 30,000 unless max out on SRS, Insurance, Education, etc.. So if I take 30,000 then the difference is 950. Anyway I will wait to see the excel calculators from IRAS as I am not very good with manual calculators. Or I need to use excel to measure
- Maid Levy: not a fan as this is not applicable
- Others: No comments
Overall, this is a mixed one for me and I tend to feel that this is more towards negative side rather than exited one.