Compulsory and voluntary MediSave contributions
Self-employed persons must make MediSave contribution to the Central Provident Fund (CPF) Board upon receipt of the 'Notice of CPF Contributions for Self-employed Persons’. Voluntary MediSave contribution may be claimed as tax relief.
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Compulsory MediSave contributions
You must make compulsory contributions to your MediSave account after you receive the 'Notice of Computation for CPF MediSave Contributions' from IRAS if:
- You are a self-employed person;
- You are a Singapore citizen or permanent resident; and
- Your net trade income1 is more than $6,000.
1Net trade income is your gross trade income minus all allowable business expenses, capital allowances and trade losses.
From 1 Nov 2024, self-employed persons will receive their MediSave contribution statement (i.e. 'Notice of CPF Contributions for Self-employed Persons') directly from the CPF Board instead of IRAS.
Amount of compulsory MediSave contributions
The MediSave amount that you have to contribute yearly depends on your:
- age; and
- net trade income.
The MediSave contribution amount is generally a percentage of your total net trade income, subject to a maximum cap.
MediSave contribution rates for self-employed person (non-pensionable) - For year 2024
| Net trade income in 2024 (for Year of Assessment (YA) 2025) | Age as at 1 Jan 2024 | |||
|---|---|---|---|---|
| Below 35 years old | 35 to below 45 years old | 45 to below 50 years old | 50 years old and above | |
| Above $6,000 to $12,000 | 4% | 4.5% | 5% | 5.25% |
| Above $12,000 to $18,000 | 4% to 8% | 4.5% to 9% | 5% to 10% | 5.25% to 10.5% |
Above $18,000 | 8% | 9% | 10% | 10.5% |
Maximum | $6,528 | $7,344 | $8,160 | $8,568 |
For more MediSave contribution rates and self-employed MediSave contribution calculator, please refer to the CPF Board website.
Example: 37 year-old with net trade income of $65,000 in 2024
| Age as at 1 Jan 2024 | 37 years old |
| Net trade income in 2024 | $65,000 |
| MediSave contribution rate | 9% |
| Maximum cap for age group | $7,344 |
| Amount of MediSave contribution payable | $5,850 Lower of:
|
Making compulsory MediSave contributions
After you have filed your Income Tax Return and received your income tax bill (i.e. Notice of Assessment) from IRAS, you will receive the 'Notice of CPF Contributions for Self-employed Persons' from CPF Board if your net trade income is more than $6,000. The notice will state how much MediSave you will need to contribute.
The compulsory MediSave contributions must be paid in full to CPF Board within 30 days from the date of issuance of the 'Notice of CPF Contributions for Self-employed Persons' from CPF Board. Alternatively, you may also make your contributions through GIRO instalment plans. The payments will be according to the instalment plan issued by the CPF Board.
Please visit CPF Board's website on how you can arrange for the payment of your MediSave contributions.
Voluntary contributions to MediSave account (VC-MA)
You may also make voluntary contributions to your MediSave account and claim tax reliefs to lower your taxes.
Tax relief for voluntary contributions made on or after 1 Jan 2022 (From YA 2023 onwards)
To make it simpler for individuals to make top-ups to their MediSave accounts without having to determine whether they have reached the annual CPF contribution cap for the year and for parity with the Retirement Sum Topping-Up scheme, the following changes will apply to CPF cash top-ups made by all individuals on or after 1 Jan 2022:
- The tax relief for cash top-up to Retirement account and Special account is expanded to include cash top-ups made to an individual’s own MediSave account and to his/ her family members’ MediSave accounts (if the individual making a top-up is a self-employed person (SEP), he/ she must be up-to-date with their MediSave payable)
- The maximum CPF Cash Top-up Relief per YA is $16,000 (maximum $8,000 for self and maximum $8,000 for family members, subject to the limit on cash top-up amount for computing tax relief).
As a self-employed person, you can continue to make CPF contributions (including to your MediSave account) on or after 1 Jan 2022 under the CPF Board’s Self-Employed Scheme. CPF tax relief will be given on your compulsory MediSave contributions and top-ups to CPF accounts, subject to conditions.
As a self-employed person, if you wish to make (a) contributions to your MediSave account under the CPF Board’s Self-Employed Scheme; and/or (b) cash top-ups to your MediSave account, you should check and comply with the CPF Board’s respective requirements and procedures for making (a) and/or (b). This is so that the specific payment to your MediSave account that is intended to be (a) or (b), is classified as such by the CPF Board.
Tax relief for voluntary contributions made on or before 31 Dec 2021 (Up to YA 2022)
You may claim tax relief for your voluntary MediSave contributions if:
- You are a Singapore citizen or Singapore permanent resident;
- You have made voluntary contributions to your MediSave account in the preceding calendar year; and
- You derived any source of income (e.g. from rental, director's fees, etc.) in the year you made the voluntary contributions.
The amount of tax relief is the lowest of the following:
- Voluntary cash contribution directed specifically to your MediSave account;
- CPF annual limit2 for the year, less mandatory contribution (refers to compulsory contribution by employee and his/her employer, and compulsory MediSave account for self-employed individuals); or
- Prevailing Basic Healthcare Sum (BHS), less the balance in MediSave account before you make the voluntary cash contribution.
2The CPF annual limit with effect from 1 Jan 2016 is $37,740.
For each YA, a personal income tax relief cap of $80,000 applies to the total amount of all tax reliefs claimed (including any tax relief on voluntary CPF contributions made).
There will be no refund for accepted voluntary CPF contributions. You should therefore evaluate whether you would benefit from tax relief on your voluntary CPF contributions and make an informed decision accordingly.
Basic healthcare sum (BHS)
Example
| Effective | Basic Healthcare Sum (BHS) |
|---|---|
| 1 Jan 2025 | $75,500 |
| 1 Jan 2024 | $71,500 |
| 1 Jan 2023 | $68,500 |
| 1 Jan 2022 | $66,000 |
| 1 Jan 2021 | $63,000 |
| 1 Jan 2020 | $60,000 |
| 1 Jan 2019 | $57,200 |
| 1 Jan 2018 | $54,500 |
| 1 Jan 2017 | $52,000 |
| 31 Dec 2016 and earlier | $49,800 |
BHS is the estimated savings you need in your MediSave account for your basic subsidised healthcare needs in old age.
For CPF members below age 65, the BHS will be adjusted annually to keep pace with the expected growth in MediSave use by the elderly.
Once CPF members reach age 65, their BHS will be fixed for the rest of their lives i.e. if you reached age 65 in 2024, your BHS will be fixed at $71,500.
The above information on BHS is found in CPF Board's website. Please contact CPF Board if you have any further clarifications.
Example 1: Andrew, 30 year-old employee
For YA 2022 and before
Andrew is an employee who is 30 years old and makes CPF contributions in 2021. | YA 2022 | |
|---|---|---|
Total wages (ordinary wage (“OW”) + additional wage (“AW”)) | $80,000 | |
Compulsory CPF contribution made by Andrew's employer | $13,600 (17% x $80,000) | |
Compulsory CPF contribution by Andrew as an employee | $16,000 (20% x $80,000) | |
Total contribution by Andrew and his employer | $29,600 ($13,600 + $16,000) | |
$37,740 | ||
Voluntary cash contribution directed by Andrew to his MediSave account in 2021 | $9,000 | |
| Maximum tax relief that can be allowed on his voluntary cash contribution made to his MediSave account | $8,140 ($37,740 - $29,600) | |
| Total CPF relief allowable to Andrew | $24,140 ($16,000 + $8,140) | |
Example 2: Bernard, 30 year-old who is a self-employed person
For YA 2023 onwards
Bernard is a self-employed person (SEP) who is 30 years old and makes CPF contributions in 2024. | YA 2025 |
|---|---|
| Net trade income assessed by IRAS | $65,000 |
MediSave contribution rate | 8% |
| Maximum MediSave cap based on his age and net trade income | $6,528 As per 2024 MediSave contribution rates for self-employed person (non-pensionable) |
Compulsory MediSave contribution by Bernard as a self-employed person based on his age and net trade income in 2024 | $5,200 Lower of:
|
| CPF annual limit | $37,740 |
Voluntary CPF contribution by Bernard under the CPF Board's Self-Employed Scheme in 2024 | $32,540 ($37,740 - $5,200) |
| CPF relief allowable for Bernard as a self-employed person | $24,050 Lower of:
|
For YA 2022 and before
|
Bernard is a self-employed person who is 30 years old and makes CPF contributions in 2021. |
YA 2022 |
|---|---|
| Net trade income assessed by IRAS | $65,000 |
|
MediSave contribution rate |
8% |
| Maximum MediSave cap based on his age and net trade income |
$5,760 As per 2021 MediSave contribution rates for self-employed person (non-pensionable) |
|
Compulsory MediSave contribution by Bernard as a self-employed person based on his age and net trade income in 2021 |
$5,200 Lower of:
|
| CPF annual limit | $37,740 |
|
Voluntary CPF contribution by Bernard as a self-employed person in 2021:
|
$32,540 ($37,740 - $5,200) |
| Maximum amount of CPF relief that Bernard can enjoy as a self-employed person |
$24,050 Lower of:
|
|
Total CPF relief allowable to Bernard: |
$37,740 |
|
$24,050 |
|
$13,690 Lower of:
|
Example 3: Charlie, 30 year-old who is both an employee and a self-employed person
For YA 2023 onwards
Charlie is an employee and also a self-employed person who is 30 years old. He makes CPF contributions in 2024. | YA 2025 |
|---|---|
Total wages (ordinary wage ("OW") + additional wage ("AW")) | $40,000 |
| Net trade income assessed by IRAS | $20,000 |
| Compulsory CPF contribution made by Charlie's employer | $6,800 (17% x $40,000) |
| Compulsory CPF contribution by Charlie as an employee | $8,000 (20% x $40,000) |
| Maximum MediSave cap based on his age and net trade income | $6,528 As per 2024 MediSave contribution rates for self-employed person (non-pensionable) |
| Compulsory MediSave contribution by Charlie as a self-employed person based on his age and net trade income in 2024 | $1,600 Lower of:
|
| CPF annual limit | $37,740 |
Voluntary CPF contribution by Charlie under the CPF Board's Self-Employed Scheme in 2024 | $21,340 ($37,740 - $6,800 - $8,000 - $1,600) |
| Maximum amount of CPF relief that Charlie can enjoy as a self-employed person | $7,400 Lower of:
|
| Total CPF relief allowable to Charlie: | $15,400 |
| $8,000 |
| $1,600 |
| Capped at $5,800 ($7,400 - $1,600) |
For YA 2022 and before
Charlie is an employee and also a self-employed person who is 30 years old. He makes CPF contributions in 2021. | YA 2022 |
|---|---|
Total wages (ordinary wage ("OW") + additional wage ("AW")) | $40,000 |
| Net trade income assessed by IRAS | $20,000 |
| Compulsory CPF contribution made by Charlie's employer | $6,800 (17% x $40,000) |
| Compulsory CPF contribution by Charlie as an employee | $8,000 (20% x $40,000) |
| Maximum MediSave cap based on his age and net trade income | $5,760 As per 2021 MediSave contribution rates for self-employed person (non-pensionable) |
| Compulsory MediSave contribution by Charlie as a self-employed person based on his age and net trade income in 2021 | $1,600 Lower of:
|
| CPF annual limit | $37,740 |
| Voluntary CPF contribution by Charlie in 2021:
| $21,340 ($37,740 - $6,800 - $8,000 - $1,600) |
| Maximum amount of CPF relief that Charlie can enjoy as a self-employed person | $7,400 Lower of:
|
| Total CPF relief allowable to Charlie: | $20,400 |
| $8,000 |
| $1,600 |
| Capped at $5,800 ($7,400 - $1,600) |
| $5,000 Lower of:
|
Voluntary contributions to MediSave account (VC-MA) by companies
Companies (e.g. taxi companies) which have qualifying contracts with self-employed persons (e.g. taxi drivers) may make voluntary cash contribution to the MediSave accounts (VC-MA) of the self-employed persons and claim tax deductions on such contributions, subject to conditions.
For more information, please refer to the FAQs on voluntary MediSave contributions by companies to SEPs (PDF, 107KB).
FAQs
Can I obtain a refund of the voluntary CPF contributions made if the total amount of tax relief (excluding any tax relief for my voluntary CPF contributions) that I can claim has already exceeded $80,000?
Where can I find out more on MediSave top-ups?
You may refer to CPF Board's website to find out more on MediSave top-ups eligibility, benefits and payment method.