Based on a salary of $2500, what is the employee's contribution for a Singapore employee to his or her CPF accounts?$600$500$700$300
Question
Based on a salary of $2500, what is the employee's contribution for a Singapore employee to his or her CPF accounts?
500
300
Solution
In Singapore, the Central Provident Fund (CPF) contribution rates vary depending on the wage band and the age of the employee. However, as the age is not specified in the question, we will assume the employee is under 55 years old, which has the highest contribution rate.
For an employee under 55 years old, the total CPF contribution rate is 37% (20% by the employee and 17% by the employer). However, the question asks for the employee's contribution.
So, here are the steps to calculate the employee's CPF contribution:
- Identify the employee's wage, which is $2500 in this case.
- Identify the employee's CPF contribution rate, which is 20% for employees under 55 years old.
- Multiply the wage by the contribution rate: 500.
So, the employee's contribution to his or her CPF accounts would be $500.
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