Let’s be realistic, we work to earn a living. Thus, the $$ (salary) becomes the first priority. There is a difference between gross salary and take-home salary.

The amount that your employer tells you is your gross salary. The gross salary deducts CPF and taxes (if any), then adds any overtime (OT) pay and any allowances, and the final amount is the take-home salary.

Take a simple example, the gross salary is $2000. With the assumption that you are 35 years old and below, you need to contribute 20% of your salary to CPF. Now you need your knowledge of percentage to calculate how much you need to contribute to CPF.

2000 x 20% = 400

With another assumption that there is no OT pay and other allowances, your take-home salary is

2000 – 400 = 1600

The good news is your employer contributes another 16% of your salary to CPF.

2000 x 16% = 320

400 + 320 = 720

Thus, your CPF account will have the total of $720 for the month.

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Now that you know your take-home salary, let’s go shopping. You want to buy a pair of shoes that costs $80. With GST of 7%, the cost of the shoes is

80 x 7% = 5.60

80 + 5.60 = 85.60

You need to pay $85.60 for the pair of shoes with GST included.

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All these calculations are the simplified versions that you will be using when you start working. The next time you are complaining about learning Mathematics, think about how Mathematics will help you in future and you won’t complain. Happy learning!

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