If your salary is $10 per hour, how much do you actually take home?
January 15, 2016 9:26am CST
In the context of Singapore, when the salary is $10 per hour, the breakdown in take-home varies according to age and salary range. We have a compulsory individual pension scheme, and the normal contribution is 20% from workers, and bosses have to contribute 17%. The contribution rate will reduce as a person gets older. For a normal person, that means the actual take-home pay is $8 per hour if the salary is $10 per hour. There is a very small amount contributed to self-help group monthly. We have an option to opt out. This self-help group will use the money to help the poor and provided subsidized training to those in need of skill upgrading. Our income tax is paid a year later, and since 67% of the working adults do not have to pay anything, that is not a big budgeting problem.
2 people like this
• United States
15 Jan 16
This is how it is here: Social Security and Medicare Withholding Rates. The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total.Dec 30, 2015. So it is much lower here.
• United Kingdom
15 Jan 16
Here we've various tax allowances. I don't get any so my tax is pretty easy to work out but i'll do the average UK wage as I don't have a job but pay tax on savings and some investments which is too hard to show. Average UK wage is £26,500 which is around $38,000. That's based on a 37.5 hour working week. Works out at £13.59 per hour. After tax and no allowances you would take home £21,107.20 which is £10.82 per hour. You'd pay a basic total of £5,392.80 in tax and national insurance. So your salary deductions for the year would be $7689.05
15 Jan 16
Wow, that is a lot of tax! At least for us, the deduction goes into our pension account, which is really a compulsory saving account for us. Most of us pay less than 2% income tax. If we make $40,000 in a year, we pay less than $250 in income tax for that year.