Deduction Checker
Checks salary deductions against the Employment Act: only the types MOM allows, the 25% limits per type, and the 50% limit on the total. Below, make an instalment plan for an advance or loan. Everything stays on your device.
Source: MOM Allowable salary deductions (updated 16 Dec 2024, verified Oct 2026)
Salary
Deductions
Only the deductions MOM allows are listed; each has conditions, shown under the choice.
No effect on CPFCounts in 50%The employee’s CPF share, deducted from the same month’s salary.
No effect on CPFCounts in 50%Hold an inquiry and let the employee explain first; only if directly at fault. At most 25% of one month’s salary, as one lump sum.
Result
Not counted: absence, NS training, loans, advances, overpaid salary, co-operative society. The final salary may exceed 50%.
Not allowed
- The damage or loss deduction is over 25% of one month’s salary (and must be one lump sum).
MOM advises that compensation owed by an employee should generally be recovered directly, rather than through salary deductions.
Instalment plan for an advance or loan
Spread the recovery of a salary advance or loan over several months within MOM’s limits, then download the plan for the employee to sign and for your payroll records. Damage or loss cannot be paid by instalments.
Details
Plan
| No. | Salary period | Instalment | Balance |
|---|---|---|---|
| 1 | Nov 2026 | $400.00 | $800.00 |
| 2 | Dec 2026 | $400.00 | $400.00 |
| 3 | Jan 2027 | $400.00 | $0.00 |
- If the salary for a month is lower (e.g. after no-pay leave), that month’s instalment must still be within 25% — reduce it and extend the plan.
- Agree in writing how any balance is settled if employment ends.