Voluntary CPF Medisave Contributions: Who Qualifies and What You Get
Learn how self-employed individuals can use Medisave contributions to manage health costs and receive tax relief in Singapore.
This scheme allows self-employed individuals to put extra money into their Medisave account to help cover future medical expenses and reduce tax burdens.
Who it's for
This is for self-employed persons who earn more than $6,000 in net trade income annually.
What you get
By making these contributions, you can benefit from tax relief to lower your taxable income. Additionally, the funds go toward your Medisave account, which provides coverage for various health-related costs.
What it costs you
The cost is a percentage of your net trade income. If your earnings are above the specified threshold, these contributions may be mandatory rather than optional.
The catch to know
Many people mistakenly believe that these contributions are always voluntary. However, if your annual net trade income meets the required threshold, these contributions are actually mandatory for self-employed individuals.
How to apply
- Calculate your net trade income for the year.
- Determine your required contribution based on your income level.
- Use the official portal to manage your Medisave contributions.
- Visit https://www.cpf.gov.sg for more details.