Singapore Expats

Guys, I need to fill documents for PR.
And they ask me to provide gross and base salary information.
What difference between those?

Good example is your basic salary is as stated in your contract. Let's say 2500/mo. This is your basic salary.

However, you are required to work 1.5 hr overtime daily (you have to come in let's say 1.5 hours earlier to set up something everyday on a 5 day week).

Then your gross salary is approximately 3008/mo (depending on the method your employer uses this could vary by a dollar or more)

Or, you may be subject to a regular Shift Allowance in addition to your basic salary.

Simple Answer:

Base salary would be the basic minimum amount promised in your contract.

Gross salary would include overtime, bonuses etc. Once you have become a PR, the Gross Salary would include the CPF deduction (aka Take Home Pay)

dazzlebabe wrote:Simple Answer:

Base salary would be the basic minimum amount promised in your contract.

Gross salary would include overtime, bonuses etc. Once you have become a PR, the Gross Salary would include the CPF deduction (aka Take Home Pay)

You said the same thing twice. Basic salary also includes the employee's CPF amount as well if you are a PR. Better go back and have another look at your employment contract.

Basic is before CPF deduction.

Read carefully.

dazzlebabe wrote:Basic is before CPF deduction.

Read carefully.

And so is Gross Salary. Reread your post.

Gross Salary would include (aka AFTER) the CPF deduction
Basic is before CPF deduction.


Read carefully.

dazzlebabe wrote:Gross salary would include overtime, bonuses etc. Once you have become a PR, the Gross Salary would include the CPF deduction (aka Take Home Pay)

I'm sorry... this doesn't make sense... gross salary and take home pay are two different things. Gross salary is what you are paid before ANY deductions are taken, including CPF.

I earn $8,000 per month. That is my gross pay. I have $900 deducted in CPF. My take home pay is $7,100.

You can easily verify this by looking at the IR8A you receive. Your gross pay is recorded on line 1; later you get a deduction for CPF paid.

Now I am confused. Looking at the MOM webpage:

"basic rate of pay" means the total amount of money (including wage adjustments and increments) to which an employee is entitled under his contract of service either for working for a period of time, that is, for one hour, one day, one week, one month or for such other period as may be stated or implied in his contract of service, or for each completed piece or task of work but does not include —

(a) additional payments by way of overtime payments;

(b) additional payments by way of bonus payments or annual wage supplements;

(c) any sum paid to the employee to reimburse him for special expenses incurred by him in the course of his employment;

(d) productivity incentive payments; and

(e) any allowance however described;



"gross rate of pay" means the total amount of money including allowances to which an employee is entitled under his contract of service either for working for a period of time, that is, for one hour, one day, one week, one month or for such other period as may be stated or implied in his contract of service, or for each completed piece or task of work but does not include —

(a) additional payments by way of overtime payments;

(b) additional payments by way of bonus payments or annual wage supplements;

(c) any sum paid to the employee to reimburse him for special expenses incurred by him in the course of his employment;

(d) productivity incentive payments; and

(e) travelling, food or housing allowances;

Can someone explain the difference. I always thought my definition was the right one.....

You are right... that is a confusing definition.

The way I see it is this.

Basic pay: I pay you $100 per day.

Now, if you work the second shift, I pay you an extra $20 per day. Your gross pay is $120 per day.

If you use your car as part of your work, I pay you an additional $30 per day.

So, if you work the second shift and use your own car, your gross pay is $150.

Note that 'special' allowances are excluded from both types of pay but that only 'allowances' are excluded from basic pay. The reasoning is as follows:

I pay you at the basic rate for a legal holiday... since you don't use your car and you may or may not work second shift.

I pay you at gross rate if I terminate you without notice.

Neither basic or gross has anything to do with overtime, bonuses, etc; it only has to do with a basic rate of pay plus normal allowances that you might get, and I think those allowances would include:

a) shift differentials
b) uniform allowance
c) transportation allowance
d) costs of meals allowed/eaten

*swoon* so clever.

Dazzlebabe, you are confusing "Basic" with "Take Home". Two entirely different things.

Basic Pay: Permanent amount you are to be paid (inclusive CPF)

Gross Pay: Variable amount (inclusive CPF)
Basic + OT + Shift + Allowance + etc

Net Pay: Final amount to take home (Gross - CPF)

what if my OT/other allowance varies every month.

Basic pay for Jan 10K
Variable for Jan 1K

Basic pay for Feb 10K
Variable for Feb 1.5K

Likewise for the rest of the year . So what would be my Gross pay then ??

I never heard of basic pay, is it the same thing as base pay?