The Taxberg
S$1,289
Net pay
S$235
Tax the employer pays
S$349
Tax you pay
Total tax paid
S$584
Did you know your employer also pays tax on your salary? It costs the employer S$235 to pay you S$1,638. In other words, every time you spend S$10 of your hard-earned money, S$3.57 goes to the government.
Real tax rate
31.2%
So, with you and the employer both paying tax, what used to be a 21.3% tax rate now rises to 31.2%, meaning your real tax rate is actually 9.9% higher than what it seemed at first.