SRS in Singapore 2026: what a contribution really costs

Paying into a private or workplace pension in Singapore usually lowers your tax and sometimes your social-security contributions, so each unit you put in costs you less than it adds to the plan. The calculator above works this out for your salary. Below you will find this year’s effect on your pay, the tax rules and how the plan compares with saving the money yourself.

This year: salary without and with the plan

	Without plan (SGD)	With plan (SGD)
Gross / year (incl. bonus)	72,000	72,000
Social security	−14,400	−14,400
Your contribution	–	−3,600
Income tax	−1,712	−1,460
Take-home / year	55,888	52,540
Employer contribution	–	+0
Into the plan (you + employer)	–	3,600
Total received / year (take-home + plan)	55,888	56,140

In the example, your net pay is SGD 4,378.33 a month with the plan: SGD 279.00 less than without it (SGD 4,657.33) · tax & contributions saved cover 7.0%. You save SGD 252 a year (tax + social security), so each unit you pay in costs you SGD 0.93. The balance could reach SGD 109,345 (you SGD 72,000 · employer SGD 0 · return SGD 37,345); at payout that is about SGD 103,878 net (after 5.0% tax & charges).

Tax treatment

Supplementary Retirement Scheme (SRS): contributions are tax-deductible and only half of each withdrawal from the statutory retirement age is taxed (about 5% used here). Interest from Singapore banks is tax-free for individuals. Supplementary Retirement Scheme (SRS) contributions are deductible up to $15,300 a year for citizens and permanent residents ($35,700 for foreigners). Withdrawals from the statutory retirement age are 50% taxable; topping up your own CPF Retirement Account also gives up to $8,000 of tax relief.

The plan or saving it yourself?

Total that left your take-home pay: SGD 66,960
Plan balance: SGD 109,345
Plan, net to you: SGD 103,878
Saving yourself, net: SGD 101,691
Advantage of the plan: +SGD 2,187

Contributions of SGD 3,600 exceed the limit by SGD 0; the excess gets no relief.

Frequently asked questions

Is it worth paying into SRS in Singapore?

In the example, the plan leaves you +SGD 2,187 better off than saving the same money yourself, mainly because of the tax relief and any employer contribution. Returns are not guaranteed.

How much tax do I save?

In the example, SGD 252 this year (tax + social security). Each unit you pay in costs you SGD 0.93 out of your take-home pay.

What happens at payout?

In the example you would receive about SGD 103,878 (after 5.0% tax & charges). Payout rules and taxes are listed in the tax section above.

Which return does the calculator assume?

The return is your own assumption in the calculator, not a forecast. Investments can lose value; try more than one value.

Rules and official sources: see “Rules applied (2026)” above. Last checked: October 2026. The amounts are estimates for information, not financial or legal advice.

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