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How To Calculate Gross Monthly Income in Singapore

how to calculate gross monthly income singapore
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According to the Singapore Department of Statistics (SingStat), the median gross monthly household income from work among employed households rose to 3.6% last year. It rose to S$9,520 in 2021 from S$9,189 the previous year. Compare that with your gross monthly income, where do you stand?

Gross monthly income plays an important role in measuring the living conditions of workers in Singapore. It helps businesses and individuals to measure their income growth. That said, it is a key metric in making decisions about investments and expenses.

For instance, your gross monthly income can determine the type of HDB flat you can purchase or how much CPF Housing Grant you’ll receive. Here we’ll learn what constitutes your gross monthly income and how to calculate it. 

What Is Gross Monthly Income From Work

In a nutshell, gross monthly income refers to the income earned from employment or business for a particular month. But this may differ depending on your source of income. 

For Employees

The gross monthly income for employees refers to the total wages or salaries received in a month before deducting personal income tax and employee Central Provident Fund (CPF) contributions. This includes:

  • Basic wages
  • Overtime pay
  • Commissions
  • Tips
  • One-twelfth of annual bonuses
  • Other allowances

Read more on the impact of CPF contribution rate.

For Self-Employed

The gross monthly income refers to the average monthly profits you’ve earned in a month from your business, profession, or trade before deducting your income tax. It is your total receipts less your monthly business expenses. 

Note: Another associated metric would be the gross monthly household income. This is the total amount of income – from employment of business, earned by all household members. 

What To Include in Gross Monthly Income 

Want to calculate your gross monthly income?

You’ll need to take into account your salary and other sources of income, such as investments, for each month. For example, if you have a small side-hustle like freelance writing, you need to include this in your income sources. Learn more on how to start a side business.

Other income sources include:

  • Overtime pay
  • Bonuses and tips received at your workplace
  • Commissions
  • Income from your business or side-hustle
  • Rental property income (if any)
  • Any interest, dividends, and capital gains earned from investments

Why Gross Monthly Income Is Important

1. Budgeting Your Investment

When you’re budgeting your expenses, it’s important to know how much you earn for the month. Understanding what your gross monthly income is will help you plan your finances better.

2. Applying For Loans and Government Schemes

Your gross monthly income is used as a metric by the Singapore government, banks, and other financial institutions to determine the type of schemes or credit available for you. Banks and lenders will require proof of income to determine your creditworthiness and your ability to pay them back.

Let’s say you’re applying for a home loan. Some banks may set a criterion wherein your loan amount must not exceed a certain percentage of your gross monthly income. If you know your gross monthly income, you will be able to make smart investment decisions, such as buying a new home.

3. Saving For Retirement

Want to have a dedicated retirement account? If so, you need to determine how much you can put into it every month. Knowing your gross monthly income will also help you make an informed decision.

4. For Making Accounting and Financial Reports

This is applicable to larger corporations. Understanding the company’s gross monthly income will make accounting and financial reporting easier. It is also essential in showcasing the company’s long-term profitability and financial health. 

man calculating his personal income

How To Calculate Gross Monthly Income 

While your gross monthly income is also written on your payslip, you may need to calculate it yourself if you have other sources of income.  

For Annual Income Earners

If you are paid annually, you can determine your gross monthly income by simply dividing your yearly earnings by 12 (the number of months in a year). Here’s the general formula:

Gross monthly income = Annual Income / 12 months

So if you make S$45,000 per year, your gross monthly income is S$3,750 (S$45,000/12). 

For Hourly Pay Earners

Step 1: Calculate your weekly income

Hourly rate x hours per week = weekly pay

Step 2: Using the result from step 1, calculate your annual salary.

Weekly pay x 52 (the number of weeks in a year) = Annual salary

Step 3: Determine your gross monthly income

Annual salary / 12 (# of months in a year) = Gross monthly income 

For Businesses

When calculating a business’ gross monthly income, the most important factor to consider is the company’s revenue. This is the entity’s total amount of earnings for the month. To determine the monthly income, use this formula:

Gross monthly revenue – the cost of goods sold = gross monthly income 

Gross Monthly Income Examples

How To Calculate Gross Monthly Income if a Person Has Multiple Part-Time Jobs

Michael Chan has two different side hustles along with his 9-5 work to make ends meet. His first side hustle pays S$8 per hour for 10 hours a week. His second side hustle pays S$10 for 8 hours a week. On top of that, he earns S$3,800 per month from his primary job. What is his gross monthly income?

To get his gross monthly income, first, you need to calculate his weekly earnings:

  • First side hustle: S$8 x 10 hours = S$80
  • Second side hustle: S$10 x 8 hours = S$80
  • Total weekly earnings: S$80 + S$80 = S$160

Next, you’ll need to calculate his annual income:

S$160 x 52 = S$8,320

Michael’s annual earnings from these two part-time jobs are S$8,320.

Michael also earns S$3,800 per month from his primary job which gives him an annual income of:

S$3,800 x 12 = S$45,600 per year

Add all his income streams to get his gross yearly income:

S$45,600 + S$8,320 = S$53,920

To get Michael’s gross monthly income, divide his gross yearly income by the number of months in a year:

S$53,920 / 12 months = S$4,493.33

Michael’s gross monthly income is S$4,493.33.

How To Calculate Gross Monthly Income For Salaried Workers

Jane is a full-time worker at an insurance company. She earns an annual salary of S$56,400. Aside from her salary, she also works 3 hours every business day at her family’s café, earning S$15 per hour. How much is her gross monthly income?

First, calculate her weekly income from her family’s café.

S$15 x 15 hours = S$225

Next, calculate her yearly income from her family’s café.

S$225 x 52 = S$11,700

To work out Jane’s gross yearly income, add all her annual earnings – from her full-time job and her family’s café.

S$56,400 + S$11,700 = S$68,100

Lastly, she can calculate her gross monthly income:

S$68,100 / 12 months = S$5,675

Jane’s gross monthly income is around S$5,675.


Gross monthly income changes over time due to various circumstances. That said, it is not used as a sole metric in determining how much one can borrow, the type of HDB flat to qualify for, or how much social support one can receive. Still, it’s important to be aware of how much you’re earning to make smart financial decisions.

Key Takeaways 

  • Gross monthly income plays an important role in measuring the living conditions of workers in Singapore.
  • Gross monthly income refers to the income earned from employment or business for a particular month.
  • To calculate your gross monthly income, you’ll need to take into account your salary and other sources of income, such as investments, for each month.

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