Who need to Contribute Compulsory Medisave Contributions
If you are:
- a self-employed person; and
- a Singapore citizen or Singapore permanent resident; and
- you earn a yearly net trade income# of more than $6,000,
it is compulsory for you to make Medisave contributions.
# Net Trade Income is your gross trade income minus all allowable business expenses, capital allowances and trade losses as determined by IRAS.
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How Much Medisave to Contribute
Below are the Medisave contribution rates for self-employed persons:
| Yearly Net Trade Income |
Above $6,000 to $12,000 |
Above $12,000 to $18,000 |
Above $18,000 |
Year
|
2007 to 2009
|
2010
|
From 2011 onwards
|
2007 to 2009
|
2010
|
From 2011 onwards
|
2007 to 2009
|
2010
|
2011
|
From 2012New!onwards |
Age as at 1 Jan
|
Below 35 years
|
2.17%
|
2.22%
|
2.33%
|
Between 2.17% and 6.5%
|
Between 2.22% and 6.67%
|
Between 2.33% and 7.00%
|
6.5% (up to a max of $3,510)
|
6.67% (up to a max of $3,601)
|
7.00% (up to a max of $3,920)
|
7.00% (up to a max of $4,200)
|
35 years to below 45 years
|
2.5%
|
2.56%
|
2.67%
|
Between 2.5% and 7.5%
|
Between 2.56% and 7.67%
|
Between 2.67% and 8.00%
|
7.5% (up to a max of $4,050)
|
7.67% (up to a max of $4,141)
|
8.00% (up to a max of $4,480)
|
8.00% (up to a max of $4,800)
|
45 years and above
|
2.83%
|
2.89%
|
3.00%
|
Between 2.83% and 8.5%
|
Between 2.89% and 8.67%
|
Between 3.00% and 9.00%
|
8.5% (up to a max of $4,590)
|
8.67% (up to a max of $4,681)
|
9.00% (up to a max of $5,040)
|
9.00% (up to a max of $5,400)
|
For more details on the Medisave contribution rates, please refer to the CPF Board website.
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When to Contribute
You have to make contributions to your Medisave account 30 days from the date you receive a "Notice of Computation of CPF Contributions (Medisave)" (NOC) from IRAS if you are not on the GIRO payment scheme. If you already have an arrangement with the CPF Board to pay your Medisave contributions by GIRO, the payment will be according to the instalment plan issued by CPF Board.
Generally, we will send you the NOC after assessing your total income for the relevant Year of Assessment (YA).
You may also contribute to your Medisave account at any time during the year.
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How to Contribute
You may contact the CPF Board to arrange for the payment of your Medisave.
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Voluntary Contribution to Medisave Account (VC-MA) by companies
As announced in Budget 2011, companies (e.g. taxi companies) may make voluntary cash contributions to the Medisave Account of self-employed persons (e.g. taxi drivers). If the self-employed person received such contributions on or after 1 Jan 2011 (YA2012)New!, he will not be taxed on that amount capped at $1,500 per calendar year. Any such contribution exceeding $1,500 will not qualify for tax exemption and may be taxable depending on the specific terms and conditions of the qualifying contract. The contributions made by companies will be used to offset the self-employed person's Medisave liability.
For more information on VC-MA made by companies, read the FAQ.