Compulsory and voluntary MediSave contributions
Self-employed persons who may also be employees are allowed relief on contributions made to their CPF accounts to reduce tax payable.
On this page:
Qualifying for CPF relief
To qualify, the self-employed person (who may also be an employee) must have contributed to any of the following in the year preceding the Year of Assessment (YA):
Amount of CPF relief
CPF annual limit for self-employed persons
| YA | 2013 to 2015 | 2016 | 2017 to 2026 |
|---|---|---|---|
Net trade income ceiling | $85,000 | $85,000 | $102,000 ($6,000^ x 17 mths) |
CPF contribution rate | 36% | 37% | 37% |
CPF annual limit | $30,600 | $31,450 | $37,740^ |
^ As announced in Budget 2023, the current CPF monthly salary ceiling of $6,000 will be increased to $8,000 in four phases starting from 1 Sep 2023.
| Period | CPF monthly salary ceiling |
| 1 Sep 2023 to 31 Dec 2023 | $6,300 |
| 1 Jan 2024 to 31 Dec 2024 | $6,800 |
| 1 Jan 2025 to 31 Dec 2025 | $7,400 |
| On or after 1 Jan 2026 | $8,000 |
Notwithstanding the increases to the CPF monthly salary ceiling starting from 1 Sep 2023, the CPF annual salary ceiling will remain at $102,000. The CPF annual limit will also remain at $37,740 (37% x $102,000).
CPF contributions by a self-employed person
You are a self-employed person who has made compulsory MediSave contributions and voluntary CPF contributions.
| Prior to YA 2026 | [NEW!] From YA 2026 onwards |
|---|---|
Your tax relief for your MediSave and voluntary CPF contributions will be capped at the lowest of:
No CPF relief will be allowed in respect of your compulsory MediSave or voluntary CPF contributions made in the preceding year if you have no assessable net trade income for the YA. | You will be allowed tax relief on the full amount of compulsory MediSave contributions made in the preceding year, without any capping restrictions. In other words, you will enjoy relief on the full amount of compulsory MediSave contributions made in the preceding year even if you have no assessable net trade income for the YA. (refer to Example 1 below) Your tax relief for your voluntary CPF contributions will be calculated as follows: (a) where the amount of compulsory Medisave contributions is more than 37% of NTI, no amount is allowed on voluntary contributions. (refer to Example 3 below). (b) where the amount of compulsory MediSave contributions is less than 37% of NTI, your tax relief for voluntary contributions for a YA would continue to be capped at the lowest of:
*Amount less tax relief allowed on compulsory contributions (excluding compulsory contributions as a platform worker who is mandated or opted in to increased CPF contributions) (refer to Example 2 below) |
Example 1: Self-employed person with net trade income of $40,000 in 2024 and $0 in 2025, making only compulsory CPF contributions.
Tax treatment from YA 2026
| YA 2026 | |
|---|---|
| Age as at 1 Jan 2025 | 65 years old |
| Compulsory MediSave contributions made in year 2025 based on net trade income in year 2024 | $4,200 ($40,000 X 10.5%) |
| Tax relief allowed on compulsory MediSave contributions made in year 2025 | $4,200 (Full amount of contribution allowed despite no net trade income in year 2025) |
| Total CPF relief allowable for YA 2026 | $4,200 |
For more information on CPF contribution rates, you may refer to CPF Board’s website.
Example 2: Self-employed person with net trade income of $40,000 in 2024 and $17,000 in 2025, making both compulsory and voluntary CPF contributions.
Tax treatment from YA 2026
| YA 2026 | |
|---|---|
| Age as at 1 Jan 2025 | 65 years old |
| Compulsory MediSave contributions made in year 2025 based on net trade income in year 2024 | $4,200 ($40,000 X 10.5%) |
| Tax relief allowed on compulsory MediSave contributions made in year 2025 | $4,200 |
| Voluntary MediSave contributions made in year 2025 | $2,440 |
| Tax relief allowed on voluntary MediSave contributions made in year 2025 | $2,090 Lowest of:
|
| Total CPF relief allowable for YA 2026 | $6,290 ($4,200 + $2,090) |
For more information on CPF contribution rates, you may refer to CPF Board’s website.
Example 3: Self-employed person with net trade income of $40,000 in 2024 and $10,000 in 2025, making both compulsory and voluntary CPF contributions.
Tax treatment from YA 2026
| YA 2026 | |
|---|---|
| Age as at 1 Jan 2025 | 65 years old |
| Compulsory MediSave contributions made in year 2025 based on net trade income in year 2024 | $4,200 ($40,000 X 10.5%) |
| Tax relief allowed on compulsory MediSave contributions made in year 2025 | $4,200 |
| Voluntary MediSave contributions made in year 2025 | $2,440 |
| Tax relief allowed on voluntary MediSave contributions made in year 2025 | $0 No amount of relief is allowed on voluntary contributions as the amount of compulsory contributions (i.e. $4,200) is more than 37% of net trade income (i.e. 37% x $10,000 = $3,700). |
| Total CPF relief allowable for YA 2026 | $4,200 |
For more information on CPF contribution rates, you may refer to CPF Board’s website.
CPF contributions by a self-employed person who is also an employee
You are an employee as well as a self-employed person who has made the following contributions in the same year:
- Compulsory CPF contributions as an employee;
- Compulsory MediSave contributions as a self-employed person; and
- Voluntary CPF contributions.
CPF annual limit
If your total compulsory CPF contributions as an employee and your compulsory MediSave contributions as a self-employed person is less than the CPF annual limit for self-employed persons, your tax relief for the voluntary CPF contributions will be capped at the prevailing CPF contribution rate for the year.
If your total compulsory CPF contributions as an employee and compulsory MediSave contributions as a self-employed person is more than the CPF annual limit for self-employed persons, no tax relief will be allowed for your voluntary CPF contributions, as the total compulsory CPF contributions as an employee and compulsory MediSave contributions as a self-employed has exceeded the CPF annual limit.
Calculations of voluntary CPF contributions
Example 4: Self-employed person earning net trade income of $40,000 in year 2024. In year 2025, he is also an employee, earning a net trade income of $17,000 and employment income of $70,000.
Tax treatment from YA 2026
| YA 2026 | |
|---|---|
| Age as at 1 Jan 2025 | 53 years old |
| Net employment income in year 2025 | $70,000 |
| Tax relief allowed on employment CPF contributions | $14,000 ($70,000 x 20%)
|
| Compulsory MediSave contributions made in year 2025 based on net trade income in year 2024 | $4,200 ($40,000 x 10.5%) |
| Tax relief allowed on compulsory MediSave contributions made in year 2025 | $4,200 |
| Voluntary MediSave contributions made in year 2025 | $2,440 |
| Tax relief allowed on voluntary MediSave contributions made in year 2025 | $2,090 Lowest of:
|
| Total CPF relief allowable for YA 2026 | $20,290 ($14,000 + $4,200 + $2,090) |
For more information on CPF contribution rates, you may refer to CPF Board’s website.
Example 5: Self-employed person earning net trade income of $40,000 in year 2024. In year 2025, he is also an employee, earning a reduced net trade income of $10,000 and employment income of $70,000.
Tax treatment from YA 2026
| YA 2026 | |
|---|---|
| Age as at 1 Jan 2025 | 53 years old |
| Net employment income in year 2025 | $70,000 |
| Tax relief allowed on employment CPF contributions | $14,000 ($70,000 x 20%)
|
| Compulsory MediSave contributions made in year 2025 based on net trade income in year 2024 | $4,200 ($40,000 x 10.5%) |
| Tax relief allowed on compulsory MediSave contributions made in year 2025 | $4,200 |
| Voluntary MediSave contributions made in year 2025 | $2,440 |
| Tax relief allowed on voluntary MediSave contributions made in year 2025 | $0 No amount of relief is allowed on voluntary contributions as amount of compulsory contributions is more than 37% of net trade income (i.e. 37% x $10,000 = $3,700) |
| Total CPF relief allowable for YA 2026 | $18,200 ($14,000 + $4,200) |
For more information on CPF contribution rates, you may refer to CPF Board’s website.
Claiming relief
CPF relief is allowed based on the date of payment. For example, to claim for the CPF relief in YA 2026, you must have made the contribution by 31 Dec 2025.
If you have made MediSave contributions or voluntary CPF contributions during the year, the tax relief will be automatically included in your Income Tax Return in the following year based on the information transmitted from CPF Board, if you are eligible.
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. Please evaluate whether you would benefit from tax relief on your voluntary CPF contributions before you make an informed decision accordingly.
There will be no refund for accepted voluntary CPF contributions. Please evaluate whether you would benefit from tax relief on your voluntary CPF contributions before you make an informed decision accordingly.
FAQs
Can I obtain a refund of the voluntary CPF contributions I made if the total amount of tax relief which I can claim is more than $80,000, even without any tax relief on voluntary CPF contributions I made?
There will be no refund for accepted voluntary CPF contributions. As such, please note the overall personal income tax relief cap and evaluate whether you would benefit from the tax relief on your voluntary CPF contributions before you make an informed decision accordingly.
Can I limit my MediSave contributions as a self-employed person if I have already made CPF contributions as an employee?
If you have a yearly net trade income of more than $6,000, you have to make contributions to your MediSave account. However, if your total employment income (excluding additional wages1) exceeds 12 times the monthly salary ceiling for ordinary wages for that year, you can apply to CPF Board to limit your MediSave contributions as a self-employed person together with supporting documents.
For more information on the qualifying conditions to limit your MediSave contributions and the required supporting documents, please visit CPF Board's website.
1 Additional wages are wage supplements which are not granted wholly and exclusively for the month. Examples are the annual bonus, leave pay, incentive and other payments made at intervals of more than a month.