• Medisave Self-Employed Scheme

    Who is called a Self-Employed Person?

    You are classified as a self-employed person if:

    • You own a business of your own.
    • You work for yourself.
    • You can recognize if your business is running a profit/loss.
    • You get your income from buying/selling goods or providing personal/professional services.

    Should you contribute to Medisave as a Self-Employed Person?

    As a self-employed person, if your NTI or Net Trade Income is above S$6,000, then you must make contributions to your Medisave Account (MA).

    What is NTI?

    Your gross income excluding capital allowances, business expenses (only allowable expenses) and trade losses constitutes your NTI.

    How much do I need to contribute to my Medisave Account?

    The contribution that the IRAS expects you to make to your Medisave Account will depend on 2 factors:

    • Your NTI.
    • Your age.

    Note – If you want to know the estimate of your contribution amount for Medisave, you can use the “Self-Employed Medisave Contribution Calculator”.

    When to make the contribution to my Medisave Account?

    The IRAS will notify you with an NOC or “Notice of Computation of CPF Contributions (Medisave) and you will have to make the payment within 30 days from the issue date of the NOC.

    If your payable amount is more than the contribution you have made, you need to top-up the shortfall within your payment date of 30 days. However, if you have made a contribution over what is required of you, the excess amount will be used for your future Medisave payable amount.

    What happens if you do not receive an NOA or Income Tax Advice by the IRAS?

    If the IRAS has not issued you an NOA (Notice of Assessment) or an income tax advice, you can declare your income yourself at any of the CPF Service Centres, online through your SingPass or at any of the SingPost branches by submitting the “Form IRAS 144”.

    You must make the Medisave contribution payment by May 31 of the next year.

    Medisave Contributions – Why make it?

    The primary reason to make Medisave contributions is that you will not receive Medisave contributions made from employers as you are self-employed. Making Medisave contributions will take care of your healthcare needs in the future, especially after retirement when you will not receive stable income from other sources.

    Contributing to your Medisave Account can be useful in the following ways:

    • You can pay for health care needs for yourself as well as your family.
    • Making premium payments for private integrated insurance plans that are approved by Medisave as well as MediShield Life.
    • You can earn an interest of up to 6% p.a. on your savings in your Medisave Account:
      • Your Medisave Account will earn an interest of 4% p.a.
      • When the combined balance in your CPF Account reaches its first S$60,000, you will receive an additional interest of 1% p.a.
      • Upon reaching 55 years of age, you will receive an extra 1% interest p.a. on accumulating your first S$30,000 worth CPF balances.
      • You can receive tax relief on your annual Net Trade Income up to 37% OR S$37,740, depending on whichever of the two is lower.
      • You can renew your license and application without any hassle or inconvenience.
      • You may be eligible for payouts under WIS or Workfare Income Supplement for up to S$2,333 per annum.

    Making contributions to other CPF Accounts in addition to Medisave

    You are eligible to make CPF or cash contributions to other accounts in your CPF:

    • Voluntary Contributions – You can make cash contributions to all CPF Accounts including OA or Ordinary Account, SA or Special Account and MA or Medisave Account. The part of your contribution that goes into your Medisave Account will be the payment due as a self-employed.
    • Transfer savings from your OA to SA or RA or Retirement Account – If your OA has excess savings, you can transfer the same to your SA or RA depending on your age. (transfer to SA: below 55 years/ transfer to RA: 55 years+)
    • Top-up CPF Accounts through RSTU or Retirement Sum Topping-Up Scheme – You can contribute to your own or your loved ones’ SA and RA.

    Making payments for Medisave

    You can make payments to your Medisave Account in the following ways:

    • GIRO – for automatic deduction of payment from your authorized bank account:
      • Download the GIRO application form available on the official CPF website.
      • Complete the form and mail it to the CPF Board.
      • Through using the GIRO facility you will be able to enjoy license renewal process completely hassle free.
    • Cheque – mandatory Medisave contributions:
      • Download the form – “FORM CPF SE 3: Medisave Payment Form for Self-Employed”.
      • Complete the form, cross your cheque and make it payable to the CPF Board. On the back of the cheque put down your NRIC number.
      • Mail the form along with the cheque to the CPF Board.
    • Cheque – voluntary Medisave contributions:
      • Download the form – “FORM CPF SE 2: CPF/Medisave Contribution Form for Self-Employed”.
      • Complete the form, cross your cheque and make it payable to the CPF Board. On the back of the cheque put down your NRIC number.
      • Mail the form along with the cheque to the CPF Board.

    Note – If your mail does not include the payment form along with your cheque, then your payment can be rejected OR will be credited to your CPF Medisave Account only if your SEP has any Medisave liability that is outstanding.

    • NETS/CashCard – make payments in the following ways:
      • NETS payment at any SAM (Self-Automated Machine) or AXS Machines.
      • NETS/CashCard at any of the SingPost branches – for this payment, you must complete the form, “FORM CPF SE 3: Medisave Payment Form for Self-Employed” if you are making a mandatory contribution and FORM CPF SE 2: CPF/Medisave Contribution Form for Self-Employed” if you are making a voluntary contribution.
    • E-Cashier – through eNETS Debit:
      • You can make the payment through Internet Banking for the following banks – DBS/POSB, Citibank, UOB and Standard Chartered banks.
    • Cash Payment at Singapore Post Offices – mandatory contributions:
      • Download the form – “FORM CPF SE 3: Medisave Payment Form for Self-Employed”.
      • Complete the form and submit it along with the payment in cash at the Singapore Post Office.
    • Cash Payment at Singapore Post Offices – voluntary contributions:
      • Download the form – “FORM CPF SE 2: CPF/Medisave Contribution Form for Self-Employed”.
      • Complete the form and submit it along with the payment in cash at the Singapore Post Office.

    Checking the status of your Medisave contribution transaction

    • If you have made the payment via e-Cashier:
      • Login to the CPF website using your SingPass.
      • Navigate to “My Activities” to check the status of your transaction.
    • If you have made the payment via other payment modes:
      • Login to the CPF website using your SingPass.
      • Navigate to “My Statement” to check if your Medisave contribution is reflected on your account.

    As a self-employed person, employers will not make contributions to your Medisave Account and not making the contribution yourself can leave you high and dry especially after you retire and are in need of medical assistance. Maintaining savings in your Medisave Account can go a long way to take care of your healthcare needs especially in your old age. Even if it is not mandatory for you to make this contribution, making it voluntarily can financially secure your healthcare requirements for the rest of your life.

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