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					 Central Provident Fund Board




 CPFB’s Mission and Vision
Mission
 To enable Singaporeans to save for a
 secure retirement


Vision
 A world-class social security organisation
 providing the best national savings scheme
 for Singaporeans to enjoy a secure
 retirement




                                              1
                   Synopsis
  About Self-Employed Scheme
    Who is a Self-Employed Person (SEP)?
    Who needs to contribute to Medisave, and why
    pay Medisave?
  Benefits of Medisave Contributions
    Case studies
  When and how much to contribute?
    Modes of payment for Medisave contributions
    What happens if a SEP fails to contribute
  Publicity & Contact Information




             1. Introduction
Self-Employed scheme started in 1992

SEPs contribute part of income into
Medisave account
  own or immediate family’s medical
  expenses.




                                                   2
2.1 Who is a Self-Employed Person?
Generate income through trade and business
  Sole-proprietor
  Partnership

Under contract for service
  Home Tutors
  Taxi Drivers
  Hawkers
  Insurance / Housing Agent




       Registering to be a SEP
 Auto-registration
    IRAS
    Licensing authorities

 Register with the Board
   Online at www.cpf.gov.sg
   Hardcopy Form

 Register at SingPost




                                             3
 2.2 Who needs to Contribute?
Singaporeans & Singapore Permanent
Residents

SEP earning an annual net trade income of
more than $6,000




   What is Net Trade Income?

Gross trade income minus all allowable
business expenses, capital allowances and
trade losses as determined by IRAS.

Excludes income from share dividends,
employment and interest from savings.




                                            4
2.3 Why Contribute to Medisave?
 All working Singaporeans, including SEPs, are
 responsible for their retirement and healthcare
 needs.
 Important for SEPs to contribute to Medisave
   Meet medical expenses especially after retirement
   Unlike employees, SEPs do not enjoy company
   medical benefits
 For those who have met the Medisave contribution
 ceiling of $34,500, further contributions will go into
 the other CPF accounts to provide for retirement
 and housing needs




3. Benefits of Medisave Contributions
 Use your Medisave in
    Restructured/ private/ community hospitals
    Medical/ dental clinics
       Surgery Expenses
       Outpatient treatment of Chronic Diseases
       Pay premiums for MediShield or Medisave-
       approved private integrated plans


 Pay hospitalisation bills of your spouse,
 children, parents or grandparents




                                                          5
     Benefits of Medisave Contributions
           Enjoy tax deduction
           5% interest on Medisave account
                 First $60,000 of your combined CPF balances, with
                 up to $20,000 from the Ordinary Account, will earn
                 extra 1% interest.
                 Savings in Medisave Account, if it is part of the first
                 $60,000 in your combined CPF account will earn 5%

           Workfare Income Supplement & Workfare
           Special Payment
           Medisave Contribution Draw




               Case Studies

                                                          “I’m healthy and
                                                          don’t really foresee
                                                          myself falling
                                                          seriously ill, but in
                                                          the event that I do,
                                                          at least I know I
                                                          have my Medisave
                                                          to fall back on.” Mr
                                                          Tay Kheng Huat,
                                                          53, Taxi Driver




Used with permission from MOH




                                                                                  6
     Case Studies


“My husband
and I are old,
we don’t want
to depend on
our children.
With Medisave,
if we fall ill, it’s
a backup.” Ms
Teo Sok Lian,
52, Canteen
Operator



                          Used with permission from MOH




     Case Studies (MCD)

                          “With Medisave,
                           there's no need …
                           to come up with
                           the cash to pay
                           [for hospital
                           expenses]. The
                           Government also
                           tops up the
                           account.” Mr Ng
                           Soon Chwee, 74,
                           Canteen Helper




                          Used with permission from MOH




                                                          7
  Case Studies (MCD)



                                         “We will fall sick one
                                          day. Nowadays,
                                          hospital expenses
                                          are high. Don’t wait
                                          until you are sick
                                          and have no
                                          Medisave, it will be
                                          too late!” Mr Lim
                                          Yat San, 51, Driver



                                            Used with permission from MOH




2.3 When do You Pay Your Medisave?

  Due Date for Payment:
    30 days from the date of IRAS’s Notice of
    Computation (NOC), or

    31 May of the following year for those who had
    not previously declared their income to IRAS.




                                                                            8
        How Much Medisave to Contribute?
                                                          Age as at 1 January
   Net Trade Income            Below 35 Years           35 to below 45 Years    45 Years and above
       Above
                                     2.17%                       2.5%                 2.83%
  $6,000 to $12,000
       Above                   Phase in * from         Phase in * from 2.5%      Phase in * from
 $12,000 to $18,000            2.17% to 6.5%                 to 7.5%             2.83% to 8.5%
                                     6.5%                        7.5%                  8.5%
    Above $18,000
                              (Maximum $3,510)            (Maximum $4,050)      (Maximum $4,590)

* Phase in rates are calculated using the following formulas:

                                                          Age as at 1 January
   Net Trade Income            Below 35 Years           35 to below 45 Years    45 Years and above
                                    % of NTI                    % of NTI              % of NTI
                                [260.4 + 0.1516                                 [339.6 + 0.1984 (NTI
                                                             [300 + 0.175
                                 (NTI -12,000)]                                        -12,000)]
        Above                                             (NTI-12,000)] X 100
                                       X 100                                             X 100
  $12,000 to $18,000                                         ----------------
                                   --------------                                  -------------------
                                                                   NTI
                                        NTI                                               NTI




               Calculate Your Own Medisave!
     SEP – Aged 33 years old
     Year Ended 31 December 2008
     Trade I: Sole
                                                $          Trade II: Partnership            $
     Proprietorship
     Net profit from business                 4,000 Share of profit from                 70,000
                                                    business
     Add: Sole-proprietor’s                 12,000 Less: Capital allowance                6,000
     salary from business
     Net trade income I                     16,000 Net trade Income II                   64,000
     Total net trade income (Trades I & II)                                              80,000
     Medisave contributions payable (6.5%)                                                5,200
     Maximum Medisave contributions payable for 2008 ($3,510)                             3,510

     Medisave contributions payable for 2008                                              3,510




                                                                                                         9
         Use our Online Calculator!
 http://www.cpf.gov.sg/cpf_info/calculator/sem/med_cal.asp?prof=sem




2.4 Modes of Payment for Medisave
          Contributions

 CPF Board
     E-Cashier www.cpf.gov.sg
       SEPs with internet banking facilities with
       UOB/DBS/Citibank.
       Payment is subject to bank’s daily transaction limit
     GIRO
 AXS
 Singapore Post Offices
 Cheque




                                                                      10
            i. E- Cashier




        ii. GIRO Payment
Facilitates regular Medisave contributions

Upfront payment and monthly payment

Deductions on 25th of each month




                                             11
Use our Online Instalment Calculator!
  http://www.cpf.gov.sg/cpf_info/Calculator/sem/med_giro_cal.asp




Use our Online Instalment Calculator!
  http://www.cpf.gov.sg/cpf_info/Calculator/sem/med_giro_cal.asp




                                                                   12
           iii. AXS Station




 What happens if SEP fails to
        Contribute?
Insufficient Medisave for your healthcare
needs!

Under CPF laws, compulsory for SEPs with
annual income >$6,000 to make Medisave
contributions.

May result in:
  Issuance of Notices to Attend Court
  Imposition of Compound Fine




                                            13
           4. Publicity




    Contact Information
Please refer to www.cpf.gov.sg.

Self-Employed Section
  Email: self-employed@cpf.gov.sg
  Tel: 1800 - 227 1188 (CPF Call Centre)
  Fax: 6258 2778




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