If you trade in Singapore as a sole proprietor, freelancer, partner in an LLP, or any other self-employed capacity, you are legally required to contribute to your Medisave Account each year. Unlike employees — whose CPF deductions happen automatically every month — self-employed persons (SEPs) carry the personal responsibility for declaring income and paying Medisave themselves.
This 2026 guide explains who counts as an SEP, the Medisave contribution rates, how IRAS and CPF Board calculate what you owe, the new digital declaration process, and the penalty regime for late or missed contributions.
Who Is a Self-Employed Person (SEP)?
You are an SEP if you derive income from buying and selling of goods, providing services, or carrying on any vocation, trade, business or profession — and you are not employed under a contract of service. Common SEP examples:
- Sole proprietors and partners (general or LLP).
- Freelance professionals: lawyers, doctors, consultants, IT contractors, designers.
- Insurance agents, financial advisers and real-estate agents.
- Hawkers, taxi and private-hire vehicle drivers.
- Online content creators earning beyond hobby thresholds.
You may be both an SEP and an employee in the same year. If so, you pay regular CPF on your salary and additional Medisave on your self-employed income.
What Triggers Medisave Liability?
You must contribute to Medisave if you:
- Are a Singapore Citizen or PR; and
- Earned an annual Net Trade Income (NTI) of more than $6,000 in the relevant year.
NTI is your gross trade income less allowable business expenses. It is the same figure declared to IRAS in your annual income tax return — there is no separate computation for CPF.
Medisave Contribution Rates 2026
Rates depend on your age and NTI band. The rates below apply to NTI between $6,000 and the prevailing CPF salary ceiling.
Rates for NTI between $6,000 and $18,000
| Age (as at end of year) | Contribution rate |
|---|---|
| Below 35 | 4.00% |
| 35 to 44 | 4.50% |
| 45 to 49 | 5.00% |
| 50 to 64 | 5.25% |
| 65 to 69 | 4.00% |
| 70 and above | 3.50% |
Rates for NTI above $18,000
| Age (as at end of year) | Contribution rate |
|---|---|
| Below 35 | 8.00% |
| 35 to 44 | 9.00% |
| 45 to 49 | 10.00% |
| 50 to 64 | 10.50% |
| 65 to 69 | 8.00% |
| 70 and above | 7.00% |
Contributions are capped at the Basic Healthcare Sum applicable to your age. Refer to the CPF Board for the prevailing cap.
Worked Example
A 38-year-old freelance consultant declares NTI of $80,000 for YA2026. Her Medisave contribution is computed by applying the rate progressively:
- First $18,000 at 4.5% = $810
- Next $62,000 at 9% = $5,580
- Total Medisave contribution: $6,390
She can pay this in a lump sum or by GIRO instalments. The full amount is tax-deductible as a personal relief, subject to the overall reliefs cap of $80,000.
How Medisave Liability Is Notified
The process is now fully digital:
- You file your annual tax return with IRAS by 18 April (e-filing) or 15 April (paper).
- IRAS issues your Notice of Assessment (NOA) with your assessed NTI.
- CPF Board automatically computes Medisave payable and issues a Notice of Computation (NOC) on your CPF account.
- You have until 31 December of the year following the year of income to pay (or longer under GIRO).
You no longer need to make a separate declaration — IRAS data flows automatically to the CPF Board.
Payment Methods
- One-time payment: Via PayNow QR, eNETS, AXS or internet banking — quoting your reference number from the NOC.
- GIRO instalments: Up to 12 monthly instalments. Apply via the CPF mobile app.
- Voluntary top-ups: Additional amounts beyond the compulsory contribution attract tax relief (subject to the Annual CPF Contribution Limit).
Tax Relief and Annual Cap
Compulsory Medisave contributions made as an SEP qualify for personal tax relief. They are subject to the Annual CPF Contribution Limit (currently $37,740 across employee + employer + voluntary contributions). Voluntary CPF Cash Top-Up Relief is capped at $8,000 per year for self-contributions and $8,000 for family-member top-ups.
For more on personal tax reliefs, see our Singapore Personal Income Tax 2026 guide.
What Happens If You Don’t Pay?
- Late-payment interest: Currently set by the CPF Board (around 1.5% per month, compounded).
- Loss of access to government schemes: Self-Employed Person Income Relief Scheme, Workfare Income Supplement, and similar programmes generally require Medisave to be up-to-date.
- Trade licence renewal: Certain self-employed trade licences (e.g. taxi vocational licence, hawker licence) cannot be renewed unless Medisave is current.
- Compounded fine: CPF Board may compound the offence or initiate prosecution under the CPF Act.
Special Situations
Loss-making years
If your NTI is $6,000 or less, you have no Medisave obligation. You can still make voluntary contributions to grow your Medisave for healthcare or tax relief.
SEPs over 70 or who reach the Basic Healthcare Sum
Once your Medisave Account reaches the prevailing Basic Healthcare Sum, further compulsory contributions overflow into your Special Account (or, if you are over 55, into your Retirement Account up to the Full Retirement Sum).
Foreign-domiciled freelancers
Foreigners working as freelancers in Singapore who are not Citizens or PRs do not contribute to Medisave. Income tax still applies to Singapore-sourced freelance earnings.
Mid-year change in employment status
Switching from employment to self-employment (or vice versa) in the same year is common. CPF and Medisave are computed separately on the employee-period salary and on the SEP-period NTI; they do not net against each other.
Should Self-Employed Persons Incorporate?
Once NTI consistently exceeds $80,000, many SEPs benefit from converting to a private limited company. Advantages include:
- Access to the 17% corporate tax rate plus partial tax exemption and Start-Up Tax Exemption.
- Separate legal personality and limited liability protection.
- Greater credibility with corporate clients.
- Ability to draw a mix of salary and dividends.
The trade-off is the additional compliance load — see our guide on how to convert a sole proprietorship to a Pte Ltd.
How Raffles Corporate Services Helps
For SEPs and freelancers, we offer:
- Personal and business income tax filings (Form B/B1) including expense optimisation.
- Annual CPF Medisave declaration coordination with IRAS data flow.
- GIRO instalment setup for Medisave.
- Conversion advice and incorporation services when scaling up from SEP to Pte Ltd.
Useful Resources
— The Editorial Team, Raffles Corporate Services