Glossary/Contribution base
Pay
Contribution base
A high earner in China, Vietnam, or Spain does not pay employer charges on every dollar of gross. The contribution base has a floor and a ceiling set by the city or the social-security administration. Singapore CPF uses an ordinary-wage ceiling (S$8,000 a month from 1 January 2026).
Offers that treat 'employer cost = 40% of unlimited gross' overstate senior packages and understate junior ones. Use the country hiring guide, then confirm the city cap.
FAQ
Questions we get
- Is the contribution base the same as monthly gross?
- Only when gross sits between the floor and the cap. Below the floor you may still contribute on the floor. Above the cap, charges stop rising.
Related
Other terms
Statutory employer cost
The mandatory amounts the employer pays on top of gross wages: social insurance, funds, levies, and extra-month rules — not a market salary.
Social insurance
Mandatory employer and employee contributions for pension, medical, unemployment, and work-injury cover, calculated on a contribution base in the country of work.
CPF (Singapore)
Central Provident Fund: mandatory contributions for Singapore citizens and permanent residents. The ordinary-wage ceiling is S$8,000 a month from 1 January 2026.
MPF (Hong Kong)
Mandatory Provident Fund: Hong Kong's 5% + 5% retirement saving on relevant income, with a monthly cap, for most employees.
Reviewed 11 September 2026. Statutory figures follow the country hiring guides. This is a briefing for multinational employers, not legal advice.
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