Enter your performance bonus, variable bonus, or other lump sum.
Total Bonus
$7,500.00
Bonus Take-Home
$5,580.00
Total Deductions on Bonus
$1,920.00
Tax on Bonus
5.6%
Marginal Rate
7.0%
Employer CPF contributions are not deducted from your pay. They are paid on top of your salary and bonus by your employer.
Singapore does not have a separate bonus tax rate. All employment income -- including bonuses, AWS (13th month), variable bonuses, and sign-on payments -- is aggregated and taxed at progressive rates by IRAS.
Because a bonus pushes your total income higher, part of it may be taxed at a higher marginal bracket than your regular salary. This calculator isolates the incremental tax caused by the bonus.
CPF on Additional Wages (AW): CPF contributions apply to bonuses classified as Additional Wages. The AW ceiling is $102,000 minus total Ordinary Wages subject to CPF for the year. Once you exceed the ceiling, no further CPF is deducted.
Year of Assessment (YA): Bonus received in calendar year 2024 is assessed in YA 2025. Tax is filed by 15 April 2025 (paper) or 18 April 2025 (e-filing).
How is my bonus taxed in Singapore?
In Singapore, bonuses (including the Annual Wage Supplement / 13th month pay) are taxed as part of your total annual income at the applicable progressive tax rate. IRAS treats all employment income together when computing your Year of Assessment.
Is the 13th month / AWS mandatory in Singapore?
The Annual Wage Supplement (AWS) is not mandatory in Singapore. It depends on your employment contract. However, many employers include a 13th month bonus as part of total compensation.
Are CPF contributions payable on bonuses?
Yes. Bonuses are classified as Additional Wages (AW) under CPF. CPF is payable on AW up to the AW ceiling, which is $102,000 minus total Ordinary Wages subject to CPF for the year.
Can I reduce the tax on my bonus?
You can make voluntary contributions to your CPF Special/MediSave accounts (up to the annual CPF limit) or contribute to the Supplementary Retirement Scheme (SRS) to reduce your chargeable income. Tax reliefs such as earned income relief and CPF relief also help lower your tax bill.
How your bonus, AWS, and 13th month pay are taxed by IRAS
Is your bonus taxed separately from your salary in Singapore?
No. IRAS (Inland Revenue Authority of Singapore) adds your bonus to your total yearly income and taxes the whole amount together using progressive rates. There is no special bonus tax rate. If your salary is S$60,000 and you get a S$10,000 bonus, IRAS taxes you on S$70,000 total.
What is the 13th month pay or Annual Wage Supplement (AWS)?
The AWS is a year-end payment that many Singapore employers give, usually equal to one month of salary. It is not required by law — it depends on your employment contract. For tax purposes, IRAS treats the AWS the same as any other bonus. It gets added to your total income for the Year of Assessment.
Do you pay CPF contributions on your bonus?
Yes. Bonuses count as Additional Wages (AW) under CPF rules. Both you and your employer contribute CPF on the bonus amount. However, CPF only applies up to the AW ceiling, which is S$102,000 minus your total Ordinary Wages subject to CPF for the year. If your salary already hits this ceiling, no CPF is taken from the bonus.
How much tax will you pay on a S$5,000 bonus?
It depends on your salary. If you earn S$60,000 a year, adding a S$5,000 bonus pushes your chargeable income higher. The extra tax is roughly S$350 to S$550, depending on your CPF deductions and reliefs. The bonus is taxed at your marginal rate — the rate that applies to the top slice of your income.
Can you reduce the tax on your bonus?
Yes. You can make voluntary top-ups to your CPF Special Account or MediSave (up to the Basic Retirement Sum) to get tax relief. You can also contribute up to S$15,300 per year to the Supplementary Retirement Scheme (SRS). Both reduce your chargeable income. Earned Income Relief and other personal reliefs also help lower your overall tax bill.
When do you pay tax on a bonus received this year?
If you receive a bonus in calendar year 2024, it is assessed in Year of Assessment (YA) 2025. You file your tax return by 15 April 2025 (paper) or 18 April 2025 (e-filing). IRAS will send you a Notice of Assessment showing how much tax you owe, and you can pay in monthly instalments via GIRO.
What are the Singapore income tax rates that apply to bonuses?
Singapore uses progressive rates from 0% to 24%. The first S$20,000 of chargeable income is taxed at 0%. Then rates climb: 2% up to S$30,000, 3.5% up to S$40,000, 7% up to S$80,000, and so on. Most employees with a salary of S$50,000 to S$80,000 will see their bonus taxed at 7% to 11.5%.
IRAS-Aligned: Based on 2025 IRAS rates and thresholds. For personal advice, speak to a qualified tax professional.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms