Medisave for the Self-Employed - ACRA

Central Provident Fund Board

� Introduction 

Synopsis 

� About Self-Employed Scheme 

� Who is a Self-Employed Person (SEP)? 

� Who needs to contribute to Medisave and how 

much? 

� Modes of payment for Medisave contributions 

� What happens if a SEP fails to contribute? 

� Benefits of Medisave Contributions 

� Case studies 

� Contact Information

Introduction 

� Self-Employed scheme started in 1992 

� SEPs contribute part of income into 

Medisave account 

� own or immediate family’s medical 

expenses.

Who is a Self-Employed Person? 

� Generate income through trade and business 

�Sole-proprietor 

�Partnership 

� Under contract for service 

� Home Tutors 

� Taxi Drivers 

� Hawkers 

� Insurance / Housing Agent

Who needs to Contribute? 

� Singaporeans & Singapore Permanent 

Residents 

� SEP earning an annual net trade income of 

more than $6,000

What is Net Trade Income? 

� Gross trade income minus all allowable 

business expenses, capital allowances and 

trade losses as determined by IRAS. 

� Excludes income from share dividends, 

employment and interest from savings.

Registering to be a SEP 

� Auto-registration 

� IRAS 

� Licensing authorities 

� Register with the Board 

� Online at www.cpf.gov.sg 

� Hardcopy Form 

� Register at SingPost

When do You Pay Your Medisave? 

� Due Date for Payment: 

� 30 days from the date of IRAS’s Notice of 

Computation (NOC), or 

� 31 May of the following year for those who had 

not previously declared their income to IRAS.

How Much Medisave to Contribute? 

Net Trade Income 

Above 

$6,000 to $12,000 

Above 

$12,000 to $18,000 

Above $18,000 

Below 35 Years 

2.17% 

Phase in * from 

2.17% to 6.5% 

6.5% 

(Maximum $3,510) 

* Phase in rates are calculated using the following formulas: 

Net Trade Income 

Above 

$12,000 to $18,000 

Below 35 Years 

% of NTI 

{[260.4 + 0.1516 (NTI - 

12,000)] X 100} 

-------------- 

NTI 

Age as at 1 January 

35 to below 45 Years 

2.5% 

Phase in * from 2.5% 

to 7.5% 

7.5% 


Age as at 1 January 

35 to below 45 Years 

% of NTI 

{[300 + 0.175 

(NTI-12,000)] X 100} 

---------------- 

NTI 

45 Years and above 

2.83% 

Phase in * from 

2.83% to 8.5% 

8.5% 


45 Years and above 

% of NTI 

{[339.6 + 0.1984 (NTI - 

12,000)] X 100} 

------------------- 

There would be changes to Self-Employed Person’s Medisave Contribution Rate from 1 Sept 

2010. Please refer to www.cpf.gov.sg for more information 

NTI

SEP – Aged 33 years old 

Year Ended 31 December 2008 

Trade I: Sole 

Proprietorship 

Net profit from business 

Add: Sole-proprietor’s 

salary from business 

Net trade income I 

Example 

16,000 

Total net trade income (Trades I & II) 

Medisave contributions payable (6.5%) 

Net trade Income II 

Maximum Medisave contributions payable for 2008 ($3,510) 

Medisave contributions payable for 2008 

$ 

4,000 

12,000 

Trade II: Partnership 

Share of profit from 

business 

Less: Capital allowance 

$ 

70,000 

6,000 

64,000 

80,000 

5,200 

3,510 

3,510

Use our Online Calculator! 

http://www.cpf.gov.sg/cpf_info/calculator/sem/med_cal.asp?prof=sem

Modes of Payment for Medisave 

Contributions 

� E-Cashier www.cpf.gov.sg 

� SEPs with internet banking facilities with UOB/DBS/Citibank/ 

OCBC. 

� Payment is subject to bank’s daily transaction limit 

� GIRO 

� ATM Card – at any AXS Stations islandwide. 

� ATM Card / Cash – at any Singapore Post offices 

� Cheque made payable to CPF Board

E- Cashier

GIRO Payment 

� Facilitates regular Medisave contributions 

� Upfront payment and monthly payment 

� Deduction on 25 th of each month.

Use our Online Instalment Calculator! 

http://www.cpf.gov.sg/cpf_info/Calculator/sem/med_giro_cal.asp

Use our Online Instalment Calculator! 

http://www.cpf.gov.sg/cpf_info/Calculator/sem/med_giro_cal.asp

What happens if SEP fails to 

Contribute? 

� Insufficient Medisave for your 

healthcare needs! 

� May result in: 

� Issuance of Notices to Attend Court 

� Imposition of Compound Fine

Benefits of Medisave Contributions 

� Use your Medisave in 

� Restructured/ private/ community hospitals 

� Medical/ dental clinics 

� Pay hospitalisation bills of your spouse, 

children, parents or grandparents


� Outpatient treatment of Chronic Diseases 

� Diabetes 

� Hypertension (e.g. High Blood Pressure) 

� Lipid Disorders (e.g. High Cholesterol) 

� Stroke 

� Asthma 

� Kidney Dialysis 

� Schizophrenia & major depression 

� Chemotherapy & radiotherapy


� Overseas Treatment (Effective 1 March 10) 

� Necessary hospitalisations and surgical 

procedures 

� Surgery Expenses 

� Wisdom tooth extraction 

� Cataract 

� Pay premiums for MediShield or Medisaveapproved 

private integrated plans


� Enjoy tax deduction 

� 5% interest on Medisave account. 

� The first $60,000 of your combined CPF 

balances, with up to $20,000 from the 

Ordinary Account, will earn extra 1% interest. 

� This means the savings in Medisave Account, 

if it is part of the first $60,000 in your 

combined CPF account will earn 5%


� Workfare Income Supplement (WIS) 

� Low wage workers may receive payouts of up 

to $1,900 a year 

� Participate in Medisave Contribution Draws 

held every quarter – Cash prizes of up to 

$5,000 

� More details can be found at www.wis.gov.sg

Used with permission from MOH 

Case Studies 

“I’m healthy and 

don’t really foresee 

myself falling 

seriously ill, but in 

the event that I do, 

at least I know I 

have my Medisave 

to fall back on.” Mr 

Tay Kheng Huat, 

53, Taxi Driver

Case Studies 

“My husband 

and I are old, 

we don’t want 

to depend on 

our children. 

With Medisave, 

if we fall ill, it’s 

a backup.” Ms 

Teo Sok Lian, 

52, Canteen 

Operator 

Used with permission from MOH

Contact Information 

� Please refer to www.cpf.gov.sg. 

� Self-Employed Section 

�Email: self-employed@cpf.gov.sg 

�Tel: 1800 - 227 1188 (CPF Call Centre) 

�Fax: 6258 2778

Medisave for the Self-Employed - ACRA

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