Voluntary CPF Contribution: Who Qualifies and What You Get
Learn how self-employed persons in Singapore can increase their long-term savings and claim tax relief through voluntary contributions.
This scheme allows you to put extra money into your accounts beyond what is required by law to help grow your personal savings. It is a way to take control of your financial future by deciding how much you want to set aside for the long term.
Who it's for
This scheme is designed specifically for self-employed persons. If you work for yourself rather than being an employee, you have the opportunity to use this method to manage your own retirement and healthcare funds through voluntary payments.
What you get
By choosing to make these extra payments, you can benefit from tax relief, which helps reduce the amount of tax you may owe. Additionally, these contributions allow for long-term savings growth, as the money you set aside is managed within your accounts to build wealth over time.
What it costs you
Making these contributions requires a voluntary cash outlay. This means you are choosing to use your own available money to fund these extra payments into your accounts, rather than the money being deducted automatically from a monthly salary as it would be for an employee.
The catch to know
It is important to distinguish between voluntary and mandatory payments. While you can choose to add extra money to your accounts, there is a rule you cannot bypass: contributions to Medisave are mandatory for self-employed persons who earn over a certain amount. You must ensure your required Medisave obligations are met alongside any voluntary amounts you choose to add.
How to apply
- Review your current financial situation to decide on a comfortable amount for a voluntary cash outlay.
- Check your current savings status to see how much you have already accumulated.
- Log in to the official government portal to submit your voluntary payment and manage your contributions.