MediSave is a key component of Singapore’s CPF system, ensuring that individuals save for their future medical needs. Whether you are an employee, self-employed, or voluntarily topping up your account, understanding the MediSave contribution rules and tax relief limits can help you maximise your healthcare savings and tax benefits.
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📌 1. What is MediSave?
MediSave is a national savings scheme under the Central Provident Fund (CPF) that helps Singaporeans and Permanent Residents set aside part of their income for future medical expenses. These funds can be used for hospitalisation, day surgeries, certain outpatient treatments, and approved health insurance premiums such as MediShield Life and Integrated Shield Plans.
💼 2. Who Needs to Contribute?
- Employees: Contributions are automatically deducted by employers as part of the CPF process.
- Self-Employed Individuals: Compulsory MediSave contributions apply if your annual net trade income exceeds S$6,000.
- Voluntary Contributors: Anyone can top up their MediSave account to build a stronger healthcare savings buffer.
📊 3. Contribution Rates for 2025
MediSave contribution rates vary depending on age group and income level. As of 2025, the rates are:
| Age Group | MediSave Rate (% of Wages) | Applies To |
|---|---|---|
| 35 & Below | 8% | Employee & Employer CPF split |
| Above 35 to 45 | 9% | Employee & Employer CPF split |
| Above 45 to 50 | 10% | Employee & Employer CPF split |
| Above 50 | 10.5% to 12% | Depending on exact age bracket |
💰 4. Tax Relief for MediSave Contributions
Contributions to MediSave, whether compulsory or voluntary, may qualify for tax relief. Here’s what you need to know:
- Relief is capped at the maximum allowable MediSave contribution for the year.
- For self-employed individuals, relief applies up to the amount required by CPF Board based on your net trade income.
- Voluntary top-ups beyond compulsory requirements can also attract relief, but only up to the annual CPF contribution limit of S$37,740.
📅 5. Basic Healthcare Sum (BHS) Limit
As of 2025, the BHS is set at S$71,500. Once your MediSave balance reaches the BHS, any excess contributions will flow into your Special Account (if below age 55) or Retirement Account (if age 55 and above).
📝 6. How to Contribute Voluntarily
- Log in to the CPF e-Services portal using Singpass.
- Select the “Contribute to My MediSave” option.
- Make payment via PayNow QR, eNETS, or GIRO.
- Keep proof of contribution for tax filing with IRAS.
💡 7. Common Mistakes to Avoid
- Not checking the BHS before making voluntary contributions.
- Exceeding the CPF Annual Limit and having excess refunded without interest.
- Assuming all voluntary top-ups are tax-deductible without confirming IRAS guidelines.
✅ Final Takeaway
Understanding MediSave contribution rules and tax relief limits is crucial for optimising both your healthcare savings and tax efficiency. By contributing wisely—whether as an employee, self-employed person, or voluntary saver—you can ensure your medical needs are covered while reducing your taxable income in Singapore.
