Singaporeans Have To Pay Nearly 50% of Our Wages Into CPF Every Month!

How much of our wages are Singaporeans exactly paying into the CPF?

According to the government, the CPF contribution rates are now 37%. But is this all we are paying into the CPF from our own pockets?

Singaporeans Have to Pay an Extra Accrued Interest to the CPF

Do you know that, “If you have used your CPF money for the purchase of the flat, you need to make a full refund of the CPF savings withdrawn plus accrued interest to your CPF account.According to the CPF Board, the “Accrued interest refers to the interest that you would have earned on your CPF if you had not withdrawn your CPF for the flat. The accrued interest is currently computed monthly at an annual interest rate of 2.5%, and compounded annually.” This 2.5% is the interest that the government pays on your CPF Ordinary Account (OA).

According to the CPF Board, whether you sell your flat before or after you turn 55, or after you “pledged (your) property to withdraw (your) Retirement Account savings as cash”, “You will (still) need to refund the CPF principal amount withdrawn for the property and its accrued interest, as well as the pledged amount.”

Also, the CPF Board also says that, “From 1 January 2013, all members are required to refund the principal amount withdrawn for a property with accrued interest when they sell the property, regardless of age.” (When did this change happen and were Singaporeans informed or consulted?)

According to the government, “it is only right that if we were to sell our home, we should return what we have borrowed (i.e. the principal amount) plus the interest we would have earned had the money not been taken out from our CPF account (accrued interest).” But why is it “only right”? Did the government explain?

But as I had written before, why should you be paying for this “accrued interest”? If you had left your CPF inside the CPF and not withdrawn it, the government would have paid for the 2.5% interest on your CPF, right? Why is it that when you take out the CPF to use, the government would then want you to pay this 2.5% interest back, which was rightfully what they should have paid?

If they stop paying this interest because you have taken the money out, then no more interest is paid, end of story, right? Why did they turn around and ask you to pay? In fact, why did the government says that “it is only right” that you return “the interest (you) would have earned had the money not been taken out”? If, it is money that you “would have earned”, then you should have earned it from an external source, right? In this case, it is from the government. If they want you to pay this back, aren’t they making you pay for what they should have paid for in the first place?

And as I had written, if the government had intentionally increased the CPF Minimum Sum to trap our CPF inside, then by making us pay the “accrued interest”, aren’t they effectively “earning” from us by making us pay more from our on wages into the CPF, through the “accrued interest”?

So, from what should be rightfully us earning from the government, the government has used the “accrued interest” scheme to earn from us instead?

Singaporeans Actually Have to Pay More Than 40% of Their Wages into CPF

Now, the “accrued interest” is cash out of our own pockets that we have to pay into the CPF, so with this as a background,  if we look at the “accrued interest” as a proportion of our wages, how much exactly do Singaporeans have to pay into the CPF as “accrued interest”?

According to the Manpower Minister Tan Chuan-Jin, he admitted in Parliament last month for the first time ever that, “Among members who turned 55 years old over the past five years and had used CPF monies to purchase HDB flats, an average of 55% of their OA savings had been withdrawn to finance their flats at age 55.”

And if you look at the CPF contribution rates, of the 37%, 23% goes into the OA.

As such, the 55% of this 23% contribution of the OA which goes into paying for housing loans would amount to 12.65% of the OA.

Slide1

But how much is the accrued interest, as a proportion of the housing loan?

As I had written, if a person sells his/her flat after 30 years, the accrued interest can be as much as half, or 50%, of the housing mortgage.

Slide22

As such, of the 12.65% of the OA savings that goes into paying for the housing loan, the accrued interest would make up half of this, or 6.33% of the OA.

Slide2

What this means is that on top of the 37% CPF contribution rate that we officially have to pay from our wages into the CPF, if we sell our flat and spread out the accrued interest into equal installments as a proportion of our wages, there is actually another 6.33% that we have to pay from our wages into the CPF!

In total, if we spread the accrued interest across the years, this would mean is that Singaporeans would have to pay an average of 43.3% of our wages into the CPF every month!

Slide3

So, the government might tell us that we are officially paying only 37% (which is already the highest contribution rate in the world), but in reality if we sell our flat, Singaporeans actually have to part with an average of 43.3% of our wages to pay into the CPF!

Higher-Income Singaporeans Actually Have to Pay Nearly 50% of Their Wages into CPF

But this is not all. For higher-income Singaporeans, say for someone who earns $5,000, he or she is able to use the maximum of his/her OA to pay for the housing loans, as long as there is enough in the Special Account that can be set aside for the CPF Minimum Sum.

As such, since the CPF contribution into the OA is 23%, a person can maximally use this 23% to pay for his/her housing loan.

As the accrued interest would make up about half of the housing loan, the person would pay about 11.5% as accrued interest.

Thus in total, on top of the official 37% CPF contribution that the person would be paying, he/she would need to be paying an additional 11.5% of his/her wage into the CPF every month, or a total of 48.5%!

Slide4

Highest-Income Singaporeans Pay Only 8.1% of Their Wages into CPF

And for a highest-income earner, he/she would only need to pay CPF on the first $5,000 of his/her wage. As such, a highest-income earner who earns $30,000 in a month would only need to pay 6.2% into CPF.

The OA would take up 3.8%, the housing loan can take up the full OA of 3.8% and the accrued interest would then amount to 1.9%.

As such, a highest-income earner would pay 6.2% in CPF contribution and an additional 1.9% of his/her wage will go into the CPF every month, or a total of 8.1%.

Slide5

And if you look at the average Singaporean and Singaporeans who earn less than $5,000 every month, we have to pay a much larger proportion of our wages into CPF – as high as 50% of our wages.

Slide6

If We Do Not Sell Our Flats, the Flat Becomes Worthless at the End of Its Lease

And what if we do not sell our flats? Thanks to a question by the Worker’s Party Gerald Giam, we now know that “the value of the flats will be zero at the end of their 99-year lease” and “Like all leasehold properties, HDB flats will revert to HDB, the landowner, upon expiry of their leases.” In short, if we do not sell our flats, they will become worthless at the end of their lease. All the money that we have spent and hope to invest with will go down the drain.

In fact, Professor Joseph Cherian had also shown how the value of a flat would peak at Year-66 and start decreasing in value thereafter, to zero by Year-99.

Screenshot (29)_edited

And then, if you decide to sell your flat before the value starts decreasing, say at Year-50, then the accrued interest would have grown to more than 150% that of the housing mortgage, or 200% at Year-60!

Slide25

A person would have to effectively use the whole of his/her CPF OA to pay for the housing, which means that he/she would have to pay 48.5% of his/her wage into CPF, and would still have to fork out more in cash to pay for the accrued interest which the CPF OA would not be able to cover.

Singaporeans Have to Lose As Much As More Than 10% of Our Wages to Pay for the CPF Accrued Interest

So, you see, the government might want to tell us that “it is only right” for Singaporeans to pay the “accrued interest” but let’s take away all the fanciful words. The “accrued interest” has to come out from our wages. We have to pay for it from our wages, just as we have to pay from our wages for the 37% CPF contribution rates.

So, if we calculate how much we have to pay in total from our wages into the CPF, spread across equal monthly installments, Singaporeans would have to pay nearly 50% into the CPF! And not the “official” 37%, even as this is already the highest contribution rate in the world!

Not only that, because not many Singaporeans might be aware of the accrued interest or how much this would be in the longer term, we might not take much notice of it. But when you do the calculations and realise that we might have to pay as much as 50% of our wages into the CPF, then the gravity of the situation hits you.

This means that we are losing as much as more than 10% of our wages and purchasing power into the CPF unknowingly! And because this 10% is not automatically deducted from our CPF, we only realise this amount by the time we sell our flats. By then, when reality hits, it might be too late.

There would also be some of us who are agreeable to paying the accrued interest. This might be acceptable, but there are however some questions to ask are:

  • If we have to pay more of our wages into the CPF for the accrued interest, this means less cash on hand and a lower purchasing power. For wages which have remained stagnant for the past many years, every spare cash in hand is very important.
  • Then, since the government has admitted that it controls the construction programmes and sets the prices for HDB flats, where flat prices have increased tremendously, and where we thus have to sacrifice a larger chunk of our retirement funds to pay for housing loans, and then a larger chunk of our wages as accrued interest into CPF, then are we unnecessarily parting with our wages and CPF for housing prices, which do not need to be so high in the first place?
  • If given a choice, would we rather pay a lower CPF contribution rate (to have just enough for retirement) and keep the cash in hand to pay for housing loans at our own discretion, or would we rather go with the current cumbersome process of having to use our retirement funds to pay for housing, not realise the existence of an accrued interest and its amount and be shocked to have to take from our own pockets to pay for this amount?

There are also some of us who might ask – how much exactly is the accrued interest as a proportion of the housing mortgage? How is the accrued interest calculated? Is there an online calculator which the government can create to help us calculate this? How much exactly of our CPF are we paying into the accrued interest, and into housing in totality? Very good questions! I would like to know as well. Would the government like to provide this information and be transparent about it? Would the government like to create an online tool that would allow Singaporeans to know outright how much the accrued interest is and how much exactly we have to use our CPF to pay for the housing loans, including for the accrued interest?

Are Singaporeans Using As Much as 82.5% of Our CPF Ordinary Account to Pay for Housing?

Finally, and most importantly, the government has admitted that we have to use 55% of our OA savings to pay for housing loans.

But the bigger question is – does this include the accrued interest? And if it does not, does that mean that Singaporeans are actually using as much as 82.5% of our OA savings to pay for housing loans, when including for the accrued interest (the accrued interest is half of the housing mortgage after 30 years: 55% + 27.5%)?

And if so, are we then actually using more than half of all our CPF to pay for housing?

Slide7

If so, if 90% of Singaporeans are not able to meet the CPF Minimum Sum and the majority of us are unable to save and retire, is it because we have to pay too much (more than half!) out from our retirement funds to pay for housing?

Again, who sets the prices for the HDB flats? And why did they price the flats so high, and extract so much from our CPF that we do not have enough to retire on? Why did they let us earn so little on the CPF so that we are not able to save enough to retire on?

3rd Edition Of The #ReturnOurCPF Event: Why Singaporeans Cannot Retire Because Of The HDB

Over the past two to three months, the government is finally admitting to many more truths about the CPF. However, we still do not know what they are doing with our CPF. How is the CPF Minimum Sum calculated? How is the accrued interest calculated? How much do we have to pay as accrued interest, as a portion of the housing mortgage? Today, we still don’t have answers to these questions.

But do you think these questions are important to you, especially when putting money aside for a home is a very important decision? Can the government choose to ignore or conceal this information or calculations, when such information is very important to how we manage our finances?

Perhaps it is too convenient that the government has all the information at their disposal to make the financial decisions at the CPF Board, GIC and Temasek Holdings. But what about Singaporeans, who do not have access to this information at all?

This is no small matter. An extra 10% that we have to pay from our wages into the CPF is a lot of money. Will the government be transparent with Singaporeans on what exactly they are doing with our CPF? Today, when Singaporeans cannot retire because we simply cannot save enough in our CPF, then there is a lot that the government needs to answer to.

On 23 August, there will be the third edition of the #ReturnOurCPF event. In the first edition on June 7, we revealed to you the truths that the government has finally admitted to how they are using our CPF to invest in the GIC. In the second edition on 12 July, we exposed further truths about the exact number of Singaporeans who were not able to meet the CPF Minimum Sum.

Join us at the third edition as we reveal even more glaring facts about how our CPF is being used by the HDB and for housing, and find out why Singaporeans are not able to retire adequately, because of the HDB. We cannot let up on this fight for answers and for transparency. Our lives are being held at hostage by the government’s lack of transparency and truths. We must continue to fight for answers, in order to allow our lives to be protected.

You can join the Facebook event page here.

Also, my first court case will be held on 18 September 2014, at 10.00am. It will be a full-day hearing.

Return Our CPF 3 Poster Part 2

Return Our CPF 3 Poster Part 2 chinese

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78 comments

  1. adriano lim - ta

    Dear All , in my opinion is simple
    Does the gov care for us or our CPF ? it is obvious , they care for our CPF and not us no further question , no matter what we says ..they will still hold our hard earned , blood and sweat money and for many is their last pennies for their retirement after working for so many years just to see the money so call can see cannot touch …they dont care la
    with new policy and new rules ..all is to make us poorer .. this goes to say ..they dont care about us …
    I have lost my faith , trust and hope in them …

    Date: Mon, 11 Aug 2014 09:26:38 +0000
    To: adbeat@hotmail.com

  2. 谢谢你Roy

    所以啦 , 人民把钱借给他们,没有剩钱吃营养,早早生癌,没到65就死掉了的人很多。可是那个90岁的呢, 拿几百万用人民的钱用到爽,只有他一个人长命百岁喔。谢谢你Roy, 帮我们 aunt and uncle讲话。

  3. arti47

    Oh please. I bet that any one soul in Syria, Iraq, Palestine (just to name a few) will be more than willing to trade places with any of you fellows at this point of time. I’m sure you’d be more than glad to do so since you seem to be so unhappy about how Singapore is.

    • landragon123

      It was reported that Nepalese are on of the happiest and Singaporean one of the most unhappy. It is not how much money we have, it is the Sick PM imposing all sorts of new setup to rob our money and the best example is CEA (Compulsory Extortion Agencies) to cheat every cents we made to pay them first and sent it oversea and lost.

    • uncle lim

      @arti47
      Singaporean are not unhappy with Singapore. But are unhappy with our garment. For, they don’t do what they had preached. They failed to delivered what they had promised us (CPF TO BE RERURED TO US AT THE AGE OF 55). when Singaporean questioning them. They just don’t want answer. But, going round the bushes. When you have a dishornest garment, Can you put your trust in them?

  4. Linda

    My entire family TOTALLY DISLIKE the very GREEDY nature of the PAP PARTY !
    We do not vote PAP Party.
    We do not fly the National Flag in all our HDB flats ever since the PAP PARTY MINISTERS greedily increased their Ministerial salaries to an OBSCENE amount.
    So tomorrow like all other 9th August, there will be NO flag outside our flats.
    But when LKY goes up the lorry, we will most proudly fly Singapore’s flag to celebrate the FREEDOM from a tyrant.
    When LHL goes up the lorry, we will gladly fly the Nation’s flag to signify that finally the Nation is freed of THE MOST USELESS Prime Minister.
    For both these occasions, our families have brand-new flags kept ready !

    • ramond

      Real estate agents earn millions…just like ministers…and most of them do not value-add to the transactions….this is what is obscene too

      • landragon123

        Are saying all Real Estates are Millionairs? Tell me how Lawyers are rich like Mrs. Lee of Lee & Lee? How many Doctors as rich as Susan Lim. Now the law of average is this, 20% top people made 80% of the pie. and the remaining share the other 20%, Understands NOW – Ramond the FOOL!

  5. Hahaha

    Wow …. Who are you trying to confuse? Have you consulted with any property guru and cpf prior making such calculation? Or you just want to make a story which see you fit to support your lies. I think property matter is not area young man.

    Now use your example of 30 years. 30 years ago flat cost 70k for 5 room in an area (I won’t tell you where check yourself in HDB site). And now cost 700k latest translation.

    Have you considered property appreciation?

    Also, you need to check the definition of accrued interest. It’s not what you think.

    Your title of this article is too bombastic !

    But it’s okay …. entertaining.

  6. Abolish CPF and National Service.

    These are PAP inventions.
    Do they improve our lives?
    If not, then vote Opposition to abolish NS and CPF.
    Your money belongs to you. Not PAP.
    Your 2 years in NS belong to you, Not PAP.

  7. blog writer

    My country, Singapore, will be 49 in 8 days time. Although we have come a long way materially, we have regressed in many ways. Our leaders have run out of ideas and have been using shortcuts to address every issue:
    – low TFR, import new citizens
    – sporting glory, import sporting talents.
    – enable businesses to be more profitable, import workers from third world countries
    – failed CPF pension system, force citizens to save and then lock up our forced savings
    – failed public transportation system, throw tax dollars at an imaginary solution
    – construct infrastructures, use citizens savings
    etc.

    After 5 decades of absolute power, our leaders have become totally disconnected from citizens. Systems which have repeatedly failed continue to be tweaked instead of revamped. And one more shortcut – cannot retire, our ‘union’ will train us to work till our last breath.

    The PAP has abused its power and has left vulnerable groups to fend for themselves, discriminates against citizens, is not accountable and not transparent, inculcates greed, uses fear as a weapon and politicised all government institutions to its benefit. Such a system is doomed to failure. The question is when.

    I do hope Singapore will be able to change before change is forced onto us. Here are my National Day wishes:

    – PAP ceases prioritising making profits above the welfare of citizens.
    – GRC system is scrapped to disable useless MPs from getting into Parliament via the back door.
    – Civil servants who are serving PAP first instead of citizens quit.
    – Grassroots members who ‘serve’ for personal gains cease all hypocrisy and quit.
    – Elected opposition MPs openly support issues which also affect their constituents ie CPF instead of just in Parliament.
    – All OUR hard earned CPF savings be returned to us.
    – Scrap all policies which discriminate against citizens.
    – Since Lee Kuan Yew is credited for Singapore’s success, he should shoulder an equal amount of blame for PAP’s failed policies/mistakes. He should personally apologise for past mistakes.
    – Open an inquiry on alleged Marxist Conspiracy. Issue an apology and provide compensation.
    – Government is transparent and accountable to the people.
    – Fear no longer used by politicians to intimidate citizens.
    – Greed not used as a carrot.
    – Mainstream media free from government meddling.

    Right minded citizens will never close ranks with an unjust government which has conveniently swept history under the carpet. Neither can we when it continues running a country with policies which are detrimental to ordinary Singaporeans.

  8. blog writer

    below are the good article i borrowed from one singaporean’s blog:

    PM Lee’s National Day message confirms the PAP is out of touch with our issues and prefers more wayangs and tweaks as ‘solutions’.

    PM Lee: “We are working together to improve our lives, build a better home, and hand to our children a better Singapore than what we inherited”.

    At the current rate of immigration, more locals will lose their jobs to foreigners and end up as taxi drivers and security guards despite having years of relevant experience. Will their lives be improved? Does PM Lee consider unaffordable public housing and healthcare as well as congested roads and regular train breakdowns a “better Singapore”? How is it better for our children when tertiary education is provided free for thousands of foreigners when an equal number of Singaporeans are forced to study overseas and pay for their own expenses?

    PM Lee: “We are improving our social safety nets, most recently with MediShield Life”.
    The PAP is actually improving its profit making nets because each time citizens are being helped, more money comes out from our own pockets. The opaque Medishield Life has been pre calculated for citizens to cross subsidise other citizens’ healthcare needs. Like the revenue generating COE, ERP, HDB, etc, Medishield Life is PAP’s latest pot of gold.

    The responsibility of the state then becomes a burden to citizens.

    Medishield Life is a national healthcare insurance plan with much higher insurance premiums. It is one of the ways of tapping into our Medisave accounts before we are six feet under. The insurance premiums are recycled within the government.

    Medishield premiums have been steadily increasing at a faster rate every year. (table below) In 2013, premiums surged to almost $400 million while claims rose by only $129 million.

    Ten years ago, Medishield had reserves of $524 million and the PAP told Singaporeans this was “to meet future obligations”, as if we will live outlive the Japanese soon. If these reserves have been well managed and earning decent returns, why are premiums increasing? Again “to meet future obligations”?

    When implemented, total Medishield Life premiums will in the billions. It will again be another profitable business for Singapore Inc.

    PM Lee: “For most of you, your HDB flat and CPF savings are key ways to fund your retirement….. to grow a valuable nest egg for old age….an asset which appreciates as Singapore prospers…more convenient for retirees to get cash out of your flats”.
    There are dangerous and flawed assumptions. It is conditional upon Singapore’s prosperity which is an unknown. Our HDB flats, which we don’t even own them, will depreciate as they age and has ZERO value at the end of their 99-year lease.

    PM Lee: “ Let us dedicate ourselves to working together, and building a brighter future for us all.”
    Can all Singaporeans work together when innocent fellow citizens had been detained/imprisoned and the state prefers silence to an open inquiry? link link How can Singaporeans work together with a government that is opaque and unaccountable to citizens? How can Singaporeans work together when the PAP controls the mainstream media and pit it against citizens for its political agenda? How can right-minded citizens work together with a government that keeps recycling failures (ministers and civil servants) into a system which prioritises, and rewards, political affiliation above citizens’ needs? Can any country progress when citizens do not speak up due to the fear of lawsuits?

    Singapore urgently needs strong leadership, a leader who acknowledges and revamps systems which have failed. Instead, PM Lee tells citizens his team is studying more ways to squeeze more money from our HDB retirement egg. The outcome of all this talk about helping citizens is always the same – citizens cross subsidising each other eg Medishield Life, public transport concessions, etc. In short, PM Lee’s message is this – Singapore Inc will continue to be Singapore Inc.

    The PAP and civil servants have been out of touch with the reality of ordinary citizens. PM Lee’s National Day message confirms the disconnect.

  9. Diplomat

    Good points. We need more Singaporeans like you. The pap has lost its way and has neglected Singaporeans. Many of the pap policies are bad for Singaporeans. Unless we change the pap soon, Singapore will crumble under pap’s misrule

  10. return our CPF

    such kind of emperor system, and this kind of bad leader who only knows how to earn more money for their own families or his relatives, we can only wish them good luck, just return our CPF from now !

    • Get your cpf

      Do you have any proof? Show it.
      Btw, why hassle ? You can get your cpf soon, my friend just got it in full. Just exchange with your IC. No one force you to stay here.

      • Get your cpf

        If you’re not happy also. The door is wide open for you and your children as well. Go find a perfect country with perfect government. Isn’t it stupid continue wandering around here ?

      • Ah Siang

        @Get your cpf,
        before my mother pass away last year, She only just back 5000 from her cpf, even no allow to use her balance money that detained by PAP.

  11. Yam

    why many Singaporeans indeed despise PAP. because we do not like Prime Lee , all the time, nothing to do just turn up for sue sue sue. always standing on the opposite side of people, even broken promises. occupied our CPF with return plan, just prove he is a vampire , Shameless, this time, all singapore stand up together sue him : Step down ! return our CPF !

    • Ah Siang

      @Get your cpf
      This is where we live for generations, 因為這裡不是李家破, 而是新加坡,新加坡人不要继续给李光耀一家人做奴隶, 因为新加坡不是李家的殖民地, 你对我们每个心狠手辣,是要逼我们全部移民, 那么, 你先把我们的土地还给我们。我们的土地就是新加坡这块地 !

  12. Alan

    So no one went down to the rally in HLP on National Day! No one wanted to care what you and your stooges were farting about! They had seen thru your lies and you have only bigger lies to cover the old one! You no longer get the limelight you crave for as no media took notice of you anymore. Even your pal in TOC deserted you by not singing with you anymore. You only have a handful of clowns here and their response were pathetic!

    You are desperate Prata Roy! Your humongous ego are crushing on you! The verdict of your case is near and you can feel the crushing sensation of the law!

    You deserve it!

  13. Hello Alan

    Hello Alan, grandson of LEe,
    why you are so sure the judgement unless you are the same interest sharer, look, PAP’s corruption through each corner of system , and the same time, accordingly we make you crash completely !

    • Alan

      Is this the best you can counter? This show how pathetic Prata’s running dogs is.

      The sign is showing and this are the facts!

      Corruption? Only from your mouth! No evidence or proof! Maybe you should learn from your boss how to create graph and lies. Can help to pull 1 or 2 more brainless to join his gang to make your worth.

      Counting the days to his demise!

  14. jasmine

    I am glad they didn’t pick you to be NMP. Please come to AMK and take on the PM GE 2016 and be a full fledged MP. This LHL is a failure. Look at how they handle Ebola. Just issue phamplet. Other first world government screen people arriving from Africa. Even the TB cases have spiked due to PAP mass importation. Take LHL head on and kick him out!

    • lee xian loon

      I live in amk. The amk cc facilities and the staff management sucks, and is ignoring public emails to improve. xian loon and the pap members in charge are doing nothing

      Yes, Roy, if you join GE 2016 and compete against xian loon, you have my strong vote!

  15. Accrued Interest

    I also want the government to pay me my CPF accrued interest of 10%.
    If the CPF is not placed in the low lousy bond, but put in Temasek, it will have accrued interest of 10% more.
    So can the government please pay the accrued interest back to me? The government choose to put the money in the lousy GIC instead of the high performing Temasek. So they should pay us our accrued interest, right or not?

  16. The Oracle

    Great accounting Roy (yes, I’m being sarcastic)!

    The employee pays 20% and the employer pays an additional 17% (raised by 1% thanks to the government to ensure we have more in our Medisave accounts) and that makes 37% of total income? Even if you account for the employer contribution as part of employee income (forgetting the government makes employers almost double our CPF contributions), let me illustrate the actual percentage as follows:
    Monthly wage say $3,000
    Employee contribution of 20%: $600
    Employer contribution of 17%: $510
    Total Income = $3,000 + $510 = $3,510
    Total contribution ($1,110) as % of income: 31.62%

    This, as usual, is just the start of Roy’s half (not heart) truths.

    • Aw Heng

      my salary only 1450 per month before CPF deduction , I working for 25 years full time job, I am single need to take care my mum, if monthly income reach $3,000 , is daydream for most of Singaporean.

      • Aw Heng

        IF Monthly wage say $3,000, we totally live in heaven, why we are here, Sir ?
        $3,000 , is huge money, I can buy nice food for my mum, and bring her to Cinema, also buy new shoes for myself, I feel sad while you have superior life, and our prime minister had even more than $3,000 , We Live in the same land, but we are no power person

      • The Oracle

        Hi Aw Heng,

        I don’t know the rest of your circumstances but maybe you can find a better employer or you can convince your boss to give you a raise. The median income for full time working Singaporeans and PRs was $3,250 per month in 2013 (not including employer CPF). Median means 50% earn less than this and 50% earn more than this so my $3,000 example was reasonable as more than 50% of Singaporeans earn over this number.

        You can see the numbers here: http://stats.mom.gov.sg/Pages/Income-Summary-Table.aspx

      • Get your cpf

        Aw Heng – unsure your current skills, work area interest, etc. But don’t lose hope, believe that everyone including you can improve. Check out http://www.wda.gov.sg for some jobs and training course info which may increase your skills, employability and hopefully you can get better pay. Course fee subsidized. Good luck.

      • Deaf Frog's Toothpick

        @ Aw Heng

        these ppl just want to rub the statistics in your face and talk down to you.

        u go on course, pay money, work harder, then a CHINA FT shows up, and say, he’ll take your job at $1400, all your efforts and $$ invested to improve will be gobbled up by the system.

      • The Oracle

        @DFT
        Except employers are now subject to tightening quotas for “FT”s so Aw Heng is now in a much better position than before to improve his situation – and that’s one of the reasons median income in Singapore rose 8% last year.

      • Deaf Frog's Toothpick

        @ The Oracle

        Lee Kuan Yew said in his interview with the straits-times team: “Finally you can say to me, so the chaps at the bottom will become anti-government. so do we change because of that? or we say, right, then we’ll lose that number of votes each time. so we got to win from the median upwards.” “that is electoral politics.”

        no PAP minister has ever contradicted LKY’s position publicly, so it is fair for me to believe that this ideology is deeply entrenched in the party, they are prepared to discard anyone from median and below.

    • Xmen

      Please be kind to Roy. I don’t see you jumping up and down when PAP leaders claim that both GIC and Temasek do not manage CPF funds. Do you believe PAP tells the truth?

    • lea kwang you

      Hi Oracle,

      I thought my pap paid you thousands as an undercover in websites, to discredit Roy and his supporters, and deviate the public from the truth?

      But how pathetic you looked, by being shot down repeatedly by the thinking netizens, with your weak and lame strawman arguments!

      Go buy more of my lky memoir from popular bookstores, and brush up yourself. Don’t force me to rise up my arse from the sick bed when i still see things not righted, and terrify everyone! REPENT

  17. tan

    Don’t need to go far, just go Indonesia , Philippines or India and see if Singapore is really so bad. You people don’t appreciate what the government has provided for the nation, but only know how to complain about everything without looking at the bigger picture. It is because many of you are spoilt that’s why.

    • Xmen

      To be fair, pick countries with similar per capita income to see if Singapore is any good. So which countries do you want to compare Singapore with?

      • The Oracle

        Singapore did have much more similar per-capita income to these other countries 50 years ago so Tan’s point is valid. We have come a long way but many of our neighbor countries are still third world and have corrupt politicians with no vision. Singapore shines like a star compared to them.

      • Xmen

        @Oracle,

        So people at the 20th percentile should be happy because they are better off than those at 10th percentile? Look, people are unhappy that they are nowhere near 50th percentile and you are telling the 20th percentile to be grateful that they are not at 10th percentile. What kind of logic is that?

        Tokyo and Berlin were in ruins after WWII. I don’t see them comparing themselves to African nations.

  18. tan

    If not for cpf, you have money to buy house, medical insurance, and receive monthly income for retirement ? I say the majority of people will not be able to. That’s how the cpf scheme works. If you say cpf is your money so government should just give all of it to you and not manage it, then by the same logic every month the cpf contribution also give to you , right ? Then how many can have money left to buy house and save for retirement ? Simple reasoning many whiners also cannot understand , and yet keep whining about the government for their own failure to keep up with the high standard of living which they can only aspire to.

    • Xmen

      I don’t believe people are whining here. They are aware that Singapore has one of the highest per capita income and saving rates in the world. Yet their personal experience indicates otherwise. The statistics on CPF minimum sum shows that many are totally unprepared for retirement.

      No other country has CPF yet people still able to buy houses. Wasn’t CPF started as a retirement fund? Now it is primarily used to pay for housing and medical.

  19. tan

    A governments job is to create an environment that attracts investment which in turn provide jobs, and this is achieved very well by our government , as evident by out first world economic stature. There are people who are successful , and some are not. If you are not, pls don’t blame the government , no government can give out good life to the people just like that. One has to earn it oneself, and if you dont, it is your failure. Not the governments. Wake up stupid !

  20. Deaf Frog's Toothpick

    salary have to be measured against performance.

    when performance does not measure up, pay is revised downwards.
    ;

    weighing pros and cons are about making tradeoffs.

    tradeoffs would have to be measured against their outcomes.

    ;

    when the outcomes are bad, that means the wrong tradeoffs were made.

    and if the sum of the outcomes were good, why is the salary revised downwards?

    lets examine the outcomes,

    1. WORST floods in recent sg history.

    2. WORST unauthorised strike in recent sg history by bus drivers

    3. WORST riot in recent sg history by Foreign TALENTS in little india

    4. WORST mrt breakdown record in recent sg history.

    well, I think the government has been misled or mistaken in some of its measures and i would like to point out inadequacies with a view of remedying such inadequacies.

    I have given them a lot of time, but the government has not been able to convince me that they are able to address these inadequacies, i think it is fair for me to attempt to procure change and improvement by lawful means by voting for more opposition in the next election to help the government.

    • landragon123

      I AM sure I did more than you did. SMRT is Singapore Most Retarded Teams headed by 3 stars General who gets their training at SAFTI fighting wars on computer Games. There try to change the TRACK and Cracked. Now the most stupid there are doing, changing the Sleepers. Both items are permanent and it is the Wheels that is causing the noise and the rocking of the train, as it is the only wearing part of the train.
      When there repairs elevators, it takes them 2 to 3 weeks and I told them to give me the jobs and each will take 1 to 2 days. I know for sure there read about it, but if the job is done fast, there will have no chances to mark up prices and cost and therefore the chances for lapse will be lesser and less chance to made extra monies for personal USE???

  21. landragon123

    Taxis is a money making machines for Comfort, while, it is losing at SMART. Now this is why, Comfort use only one brand whereas SMRT by taxis at cheap sales and many times it was 50 units per contract. It is penny wise pound fool deals.

  22. 切根之痛

    自从人山居,颇欲绝情愫。
    奈何此山中,遍植相思树。
    郁郁久成林,十年滋雨露。
    大者五六围,拱把不知数。
    上则蔽白日,下亦荫蹊路。
    黄鹂深树鸣,似为相思诉。
    树岂解相思,由人自作故。
    不见相思人,愁对夕阳暮。
    http://www.nandazhan.com/lishi/chunqiu6.htm

  23. Does NS Benefit the PAP Government?

    @ August 11, 2014 – 10:08 pm @ The Oracle
    ” NS is for Singapore, not PAP. If you don’t want to do NS then I don’t consider you true Singaporean. Shame on you.”

    How does NS benefit Singaporeans?
    Does NS pay the market rates for NS men?
    Why is PAP government paying a subsistence wage to NS men and yet pay top dollar for the latest American jet fighter the F-35?
    Are we paying low salaries to NS men in order to afford the F-35 jet?

    • The Oracle

      All Singaporeans benefit from NS:
      – NS helps ensure we have a credible deterrent against potential aggressor nations. Look at our history with Indonesia for examples. Just because things seem OK today, this is no guarantee for the future.
      – NS brings together different races, different religions, some rich, some poor, some educated, and some not so much – who learn to live and work closely with each other. This is a very important part of maintaining a more harmonious society.

      For the individual NS man:
      – All eligible operationally ready NS men are entitled to NSmen tax relief of between $1,500 and $5,000 per year.
      – Let’s remember most NS men are coming straight from school before university, have no skills as such, will receive significant training, possibly including overseas trips, their benefits also include accommodation and food in camp, etc.. NS pay is not so low when you consider these factors.
      – NS men are fitter (and probably better looking) as a result!
      – I understand the government is already looking at ways to provide additional benefits to NS men (but don’t expect huge pay rises – NS is about still about serving our country).

      And military hardware costs have next to nothing to do with NS salaries.

      • Oracle's NS Is Good - A Wet Dream

        “All Singaporeans benefit from NS” – Typical PAP propaganda.

        “NS helps ensure we have a credible deterrent … ”
        – How?
        – PAP has already destroyed any Singaporean identity we had with the mass importation of aliens.

        “NS brings together different races, different religions, some rich, some poor, some educated, and some not so much …”
        – that particular rich man’s son does his NS in a laboratory
        – our population is now 40% aliens, so why no aliens in NS to build a Singaporean identity?

        “And military hardware costs have next to nothing to do with NS salaries.”
        – Really?
        – in that case pay NS men more money.

        “Let’s remember most NS men are coming straight from school before university, have no skills as such, will receive significant training, possibly including overseas trips, their benefits also include accommodation and food in camp, etc.. NS pay is not so low when you consider these factors.”
        – Really ah?
        – so good meh?
        – then why not limit NS to just sons of PAP Millionaires?

  24. Jim

    Roy, it is to the opposition loss if you are accepted as NMP. So don’t get discouraged. You should join SDP, WP etc and fight to expose PAP’s wrong-doings as a MP. You have many supporters here. -Ya Fighting

      • The Oracle

        In your dreams. I don’t see the main opposition parties working with Roy as he is a liability:
        – He consistently posts incorrect information and that is also why he has legal troubles now
        – He is clearly a “hot head” who hates the PAP and that clouds his judgment
        – He is a complainer without any real solutions
        – The solutions he does propose (other than “kick out PAP”) are mostly borrowed from near-bankrupt Western countries.
        – He is getting boring as he repeats everything 100s of times.

      • Oracle's Wife Wants a BIG Dog

        Hey Oracle.
        I must commend your wife’s efforts in promoting inter-species harmony.
        She certainly backs up her beliefs with her orifices.
        Can you please advise when you will NOT be home?
        I need to deliver a BIG dog to your wife (wink, wink).

  25. Pingback: Daily SG: 12 Aug 2014 | The Singapore Daily
  26. landragon123

    NS is good and cutting time will be better, 1 years for recruits and 18 months for officers. This NS have nothing to do mow going to petrol the MRT to catch Terrorist . Today’s terrorist are only suicide bombers and our few young BOYS at the MRT will be able to recognize them and catch them?
    Now security are extend to Bus Interchange. HOW many terrorist have we caught General Teo Chee Hian? There was never anyone trying to cross the causeway without checking, BUT the reports are 5 have done it because of your tight securities.

    • landragon123

      How stupid to do deterrence, The west where all the suicide bombing and in China, are you saying they are not doing a good job? Please read and watch the TV and all terrorists are Muslims suicide BOMBERS, and you can stop them, STUPID!!! Have Singapore caught any terrorist in our 49 years of countryhood, There let go one to Malaysia for a holiday and it was Malaysia who brought him back. A11 the ‘terrorists’ in our prisons are bought in by Malaysia and Indonesia and we took them in to feed them. The are all Muslims, why not let Malaysia and Indonesia to FEED them???

  27. teoenming

    Singapore Minister Mentor Lee Kuan Yew and Prime Minister Lee Hsien Loong Want Teo En Ming Dead

    Singapore Minister Mentor Lee Kuan Yew and Prime Minister Lee Hsien Loong want Teo En Ming dead. Lee Kuan Yew and Lee Hsien Loong want Teo En Ming to die young. I am only 36 years old. I do not want to die young. I want to live to a hundred years old and beyond!!! I want to live to a hundred years old and beyond!!! I want to live to a hundred years old and beyond!!! I want to live to a hundred years old and beyond!!! I want to live to a hundred years old and beyond!!!

    In fact, I want to live forever!!!
    In fact, I want to live forever!!!
    In fact, I want to live forever!!!
    In fact, I want to live forever!!!
    In fact, I want to live forever!!!

    Teo En Ming has filed an official complaint against the Singapore Government at the United Nations Human Rights Council Branch and the International Criminal Court. Read the letter here:

    ***********************************************************************************
    ***********************************************************************************
    ***********************************************************************************
    ***********************************************************************************
    ***********************************************************************************
    ***********************************************************************************

    Teo En Ming’s Open Letter (Plea for Medical Help/Assistance) to World Leaders dated 27 Aug 2010. Read the letter here:

    http://lists.mcs.anl.gov/pipermail/mpich-discuss/2010-August/007811.html

    Mr. Teo En Ming (Zhang Enming)
    Singapore Citizen
    Republic of Singapore
    14 Jan 2015 Wednesday SGT

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