All You Need Know About A Self-Employed Individual’s CPF Contributions

All You Need Know About A Self-Employed Individual’s CPF Contributions

Last Updated on by Tree of Wealth

Singaporeans would be familiar with having to make monthly Central Provident Fund (CPF) contributions, and seeing a significant sum being deducted from their salaries each month.

Many think that self-employed individuals do not have to make CPF contributions. However, this is in fact a misconception, and you do have to make CPF contributions even if you are self-employed.

What constitutes a self-employed person? If you receive a full-time or part-time income from a business, or run your own business, you’re considered a self-employed individual.

Here’s all you need to know about CPF contributions as a self-employed individual in Singapore.

Do all self-employed individuals have to make CPF contributions?

The Net Trade Income (NTI) refers to whatever you have earned from your part-time or freelance jobs. If you are a business owner, the NTI is the gross trade income less allowable business expenses.

Self-employed individuals who earn a yearly NTI of more than S$6,000 have to make compulsory contributions to MediSave, while contributions to your Ordinary Account or Special Account are voluntary.

The table below shows how much you have to contribute to MediSave based on your age and income level.


NTI: S$6,000 to S$12,000 NTI: S$12,000 to S$18,000 NTI: Above S$18,000

Below 35 years old

4% 4-8% 8% (Max: S$5,760)
35 to 45 years old 4.5% 4.5-9%

9% (Max: S$6,480)

45 to 50 years old

5% 5-10%

10% (Max: S$7,200)

Above 50 years old 5.25% 5.25-10.5%

10% (Max: S$7,200)

You can also make use of the MediSave calculator to calculate the amount you have to contribute to MediSave based on your demographics.

How to pay for your MediSave contributions

To begin, you will need to delare your income and file your income tax. You will then receive a Notice Of Assessment from IRAS, and a Notice of Computation which will state your actual MediSave payable.

You can make your MediSave contribution at any CPF service center or online via SingPass within 30 days of the date stated in the Notice of Computation.

Tax relief eligibility

A self-employed individual is also eligible for tax reliefs under the CPF Relief for Self-Employed scheme.

To qualify, you would have had to make 1) employee CPF contributions 2) Medisave contributions in the year preceding the Year of Assessment.

For self-employed individuals to qualify, you have to be self-employed and make a compulsory Medisave contribution and voluntary CPF contribution in 2020.

For the Year of Assessment 2021, the tax relief for Medisave and voluntary CPF contributions for self-employed individuals will be capped at:

  • 37% of net trade income assessed, or
  • CPF relief cap of S$37,740, or
  • Actual income contributed

There will be no CPF relief for these individuals if their compulsory Medisave or voluntary CPF contributions if they do not have an assessable net trade income for the Year of Assessment 2021.


Besides making compulsory MediSave contributions as a self-employed individual, you can also consider making voluntary CPF contributions to your Ordinary Account and Special Account as well.

This will ensure that you have a pool of savings or safety net that can be used for financial support during your retirement years.

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