The cap is on CPF amount, not on salary. So, this $4500 is the maximum CPF amount (cap) and not the salary cap figure.
You are wrong my friend.
At its full contribution rate of 20% (only applicabe after 2 years of being a PR) CPF is applicable to only the first $4500 dollars from your monthly salary and that comes to $900/month. Usually there is a $5-$10 dollar charity deduction along with it.
So if your gross monthly income is $17000 dollars, then your take home nett income should still be around $16090 dollars. Hope this helps.
Contribution Rates for PRs are generally as follows (it may be different for some age brackets):
Starting contribution after grant of PR: Employee 5%, Employer 3%
Contribution after 1 year of being PR: Employee 15%, Employer 8%
Contribution after 2 years of being PR: Employee 20%, Employer 14.5%
Once again, it is all applicable only to the first $4500 from your monthly salary.