**S$80,000** employment income often nets **~S$62k–S$64k** after resident progressive tax in this toy model. **S$80,000** sole-prop profit with **S$9k** expenses lands nearer **S$58k–S$60k** once tax hits the full profit—add Medisave/CPF if you are PR/citizen.
Three SGD checkpoints
- S$60k salary: ~S$48k net here. - S$60k profit: ~S$46k net before voluntary savings. - S$120k salary: ~S$91k net vs S$120k freelance profit ~S$87k unless expenses spike.
GST registration
Not modeled—if you exceed S$1M turnover, GST affects quotes and cash flow.
Worked example: S$80,000 employment — what you keep
S$80,000 employment income for a tax resident often nets ~S$63,000 after progressive tax in simplified models. Citizens/PRs also pay CPF: employee 20% on ordinary wages (subject to ceilings) plus employer 17%—~S$13k–15k employee and ~S$11k–13k employer on typical bands, money you cannot spend today but which is wealth. A self-employed person with S$80,000 profit and S$8,000 expenses—after tax on S$72,000 and without full employee CPF—may keep ~S$58,000–60,000 cash but must fund Medisave and retirement explicitly if applicable.
| Item | Employee (S$80k) | Self-employed (S$80k revenue) |
|---|---|---|
| Income / revenue | S$80,000 | S$80,000 |
| Business expenses | — | −S$8,000 |
| Taxable income | S$80,000 | S$72,000 |
| Income tax (resident model) | −S$3,350 | −S$2,650 |
| CPF employee / Medisave (illustrative) | −S$12,800 | −S$3,000 |
| Employer CPF (benefit) | S$10,800 | S$0 |
| ≈ Cash + forced savings | ≈ S$63,850 | ≈ S$66,350 |
EP holders often have **0% CPF**—toggle assumptions to your status. **GST** registration near **S$1M** turnover changes quoting.
Common mistakes when comparing pay in Singapore
Ignoring CPF as part of compensation
Employer CPF is real money locked for housing/medical/retirement—freelancers must replicate it voluntarily.
Comparing revenue to salary without expenses
S$80k invoices minus 10–15% costs are not S$80k salary.
Forgetting progressive tax residency
Non-residents can face different treatment—this model assumes resident bands.
Missing Medisave/top-ups
Self-employed Medisave obligations can bite cash flow even when income tax looks low.
Who benefits most from freelancing in Singapore?
When self-employment wins
Freelancing works when:
- Your **day rate** clears **S$800–1,200+** in corporate demand (fintech, infra, PMO).
- You are **EP-style** with no CPF drag but price risk into the contract.
- You serve **export clients** where GST may be out of scope (verify).
- You keep **utilisation high** and admin low.
When employment is safer
Stay employed when:
- You need **CPF-backed housing** servicing and predictable payslips.
- Your freelance rate implies **<S$600/day** after bench.
- You want **employer medical and dental** without shopping plans.
- You rely on **bonuses and stock** tied to headcount.
FAQ
Not modeled—foreign-sourced rules need bespoke advice.
Illustrative—ceilings and age bands change yearly.
No—SRS deductions are optional planning.
Not in net tax here—register if turnover crosses thresholds.
Often **S$95k–115k+** profit depending on expenses and Medisave.
Adjust CPF rates manually—this is a simplified resident view.
No—specific rules may apply.
Prorate income; year of arrival/departure needs IRAS filing care.