If your salary is $10 per hour, how much do you actually take home?

@scheng1 (24801)
Singapore
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
3 responses
• 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.
1 person likes this
• United States
17 Jan 16
@scheng1 Oh yes we do have both the taxes as well, but that is the federal system of having a retirement Scheng.
@Mike197602 (13467)
• Worcester, England
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
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@scheng1 (24801)
• Singapore
16 Jan 16
Over here, we have the advantage of low tax and zero tax for investment income. The only investment income that we need to pay tax on is rental income. That is the plus side. The minus is that we do not have unemployment benefit or social security.
@JolietJake (51144)
• United States
15 Jan 16
It would depend upon total hours worked, not the 'per hour' rate you are paid. Different incomes have different tax rates according to total hours works, regardless of how much you earn per hour..
1 person likes this
@scheng1 (24801)
• Singapore
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.
1 person likes this