What are the MediSave contribution requirements for self-employed persons in Singapore?

If you are self-employed in Singapore and earning a net trade income (NTI) of more than S$6,000 per year, you are required by law to contribute to your MediSave Account (MA). This is compulsory.

Compulsory MediSave contribution rates for self-employed persons:

Key details:

• Contributions are based on your Net Trade Income (NTI), which is your gross trade income minus allowable business expenses.
• There is an annual MediSave contribution cap based on the prevailing MediSave Contribution Ceiling. For 2024, the maximum MediSave balance is S$71,500 (Basic Healthcare Sum).
• If your NTI is S$6,000 or below, MediSave contributions are not required, but you may contribute voluntarily.

Consequences of non-contribution:

• IRAS will compute your MediSave liability when you file your income tax return.
• Failure to contribute can result in penalties and legal action by the CPF Board.
• Outstanding MediSave contributions accrue interest at 1.5% per month.

Voluntary CPF contributions: Beyond compulsory MediSave, self-employed persons can make voluntary contributions to all three CPF accounts (OA, SA, MA) to enjoy benefits like housing and retirement savings. These voluntary contributions also qualify for tax relief up to the CPF annual limit of S$37,740 (37% of the OW ceiling of S$6,800 x 12 months + additional wages).