Provident Fund Calculator - PDF

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					 Central Provident Fund Board

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

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

  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

2.1 Who is a Self-Employed Person?
Generate income through trade and business

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

       Registering to be a SEP
    Licensing authorities

 Register with the Board
   Online at
   Hardcopy Form

 Register at SingPost

 2.2 Who needs to Contribute?
Singaporeans & Singapore Permanent

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.

2.3 Why Contribute to Medisave?
 All working Singaporeans, including SEPs, are
 responsible for their retirement and healthcare
 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

     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

     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

                          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

  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.

        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
                                     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

               Calculate Your Own Medisave!
     SEP – Aged 33 years old
     Year Ended 31 December 2008
     Trade I: Sole
                                                $          Trade II: Partnership            $
     Net profit from business                 4,000 Share of profit from                 70,000
     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

         Use our Online Calculator!

2.4 Modes of Payment for Medisave

 CPF Board
       SEPs with internet banking facilities with
       Payment is subject to bank’s daily transaction limit
 Singapore Post Offices

            i. E- Cashier

        ii. GIRO Payment
Facilitates regular Medisave contributions

Upfront payment and monthly payment

Deductions on 25th of each month

Use our Online Instalment Calculator!

Use our Online Instalment Calculator!

           iii. AXS Station

 What happens if SEP fails to
Insufficient Medisave for your healthcare

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

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

           4. Publicity

    Contact Information
Please refer to

Self-Employed Section
  Tel: 1800 - 227 1188 (CPF Call Centre)
  Fax: 6258 2778


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