Self-Employed Person (SEP) Medisave Contribution: Who Qualifies and What You Get
Learn how self-employed drivers in Singapore contribute to Medisave to fund their future healthcare needs.
This scheme requires self-employed drivers to set aside a portion of their income into a Medisave account to help fund their future healthcare needs.
Who it's for
This scheme is specifically for those working as self-employed drivers. If you drive for a living and operate as a self-employed person rather than a regular employee, you fall under this requirement.
What you get
The benefit of this scheme is the mandatory savings built up within your Medisave account. These funds are set aside specifically to help you manage and pay for your healthcare needs in the future, providing a financial cushion for medical expenses.
What it costs you
Contributing to Medisave is not a fixed flat fee; instead, it is calculated as a percentage of your net trade income. This means the amount you contribute will depend on how much income you have earned through your driving work.
The catch to know
The most important thing to watch out for is the annual Notice of Computation. This is a document issued by the CPF Board that outlines your required contributions. If you ignore this notice or fail to follow the instructions provided in it, you may face penalties.
How to apply
- Track your earnings to determine your net trade income for the year.
- Wait for the annual Notice of Computation issued by the CPF Board.
- Review the notice to understand your specific contribution requirements.
- Complete the necessary steps to ensure your Medisave contributions are up to date.