Know exactly where your money goes
Ever wondered why your bank deposit is different from your stated salary? The answer lies in the breakdown of earnings and deductions on your payslip. Understanding these components helps you see exactly how your pay is calculated and where each portion goes.
The Basic Formula
Every payslip follows this simple calculation:
Gross Pay − Deductions = Net Pay
- Gross Pay is everything you earned before any deductions.
- Deductions are amounts taken out of your pay.
- Net Pay is what you actually receive in your bank account.
Earnings Explained
Earnings are the amounts that make up your gross pay:
- Basic Salary is the fixed amount in your employment contract. This is the foundation of your pay.
- Allowances are additional payments for specific purposes, such as transport, meals, phone, or housing.
- Overtime is extra pay for hours worked beyond your regular schedule (if applicable).
- Bonuses are one-time payments for performance, holidays, or other reasons.
- Commissions are earnings based on sales or targets achieved.
Add all these together and you get your Gross Pay.
Deductions Explained
Deductions reduce your gross pay to arrive at net pay. These are amounts taken from your salary:
- Statutory Contributions are mandatory payments required by law, such as pension or provident fund contributions (your share).
- Tax Withholdings are income tax amounts deducted at source (in some regions).
- Insurance Premiums for health, life, or other coverage you have opted into.
- Loan Repayments for any salary advances or company loans being recovered.
- Other Deductions for items like union dues, voluntary contributions, or salary adjustments.
Employer Contributions
In addition to your salary, your employer makes contributions on your behalf. These do not reduce your pay but are shown on your payslip for transparency:
- Statutory Employer Contributions are the company's share of mandatory contributions (e.g., provident fund, social security).
- Levies are payments to government funds based on your employment.
- Insurance that your employer pays for your coverage.
These amounts are paid by the company on top of your salary. They appear on your payslip so you can see the full cost of your employment.
Reading Your Payslip in Officaid
When you view a payslip in Officaid, you will see:
- Earnings section listing basic salary and any allowances, totaling to Gross Pay.
- Deductions section listing each deduction, totaling to Total Deductions.
- Net Pay showing your final take-home amount.
- Employer Contributions section showing what your company pays on your behalf.
Example Breakdown
Here is how a payslip might break down:
- Basic Salary: SGD 12,000.00
- Gross Pay: SGD 12,000.00 (basic + any allowances)
- CPF Employee Contribution: SGD 1,480.00
- CDAC Contribution: SGD 3.00
- Total Deductions: SGD 1,483.00
- Net Pay: SGD 10,517.00 (gross pay minus deductions)
The employer also contributes CPF Employer Contribution (SGD 1,258.00) and Skills Development Levy (SGD 11.00), paid separately by the company.
Frequently Asked Questions
Deductions are subtracted from your gross pay before you receive it. These include statutory contributions, insurance, and any other withholdings. View your payslip in Me → My Desk → Payslips to see the full breakdown.
Employer contributions are amounts your company pays on your behalf, separate from your salary. They include things like the employer's share of provident fund contributions and levies. These do not reduce your pay.
Yes. Click any payslip in the Payslips section of My Desk to view the Pay Slip Details page. This shows all earnings, deductions, and employer contributions itemized.
What's Next?
Explore your pay information:
- What is a Payslip explains the purpose and importance of payslips.
- Viewing Your Payslips shows how to access your pay history in Officaid.
- Understanding My Desk introduces your personal dashboard.