CPF for the self-employed works differently from an employee’s. The only compulsory contribution is to MediSave, once your net trade income is more than S$6,000 a year, and everything else is a decision.
An employee’s CPF builds up without effort. For those aged 55 and below, 37% of pay up to the wage ceiling arrives each month from two sources. A self-employed person gets none of that.
That freedom is useful when income is uneven. It also means retirement and housing savings do not build unless you build them. Here is how the system works for 2026.
CPF for the Self-Employed: MediSave Is Compulsory
You must contribute to MediSave if your net trade income is more than $6,000 a year. Net trade income is your gross trade income less allowable business expenses, capital allowances and trade losses, as assessed by IRAS.
There is nothing to declare to CPF Board separately. After IRAS assesses your tax return, CPF Board issues a notice of contribution, which appears in your self-employment dashboard. Payment is due 30 days from the date of the notice, in full or by instalments.
The amount depends on your age and income. These are the 2026 rates for self-employed persons who are not pensioners.
| Net trade income | Below 35 | 35 to below 45 | 45 to below 50 | 50 and above |
|---|---|---|---|---|
| Above $6,000 to $12,000 | 4% | 4.5% | 5% | 5.25% |
| Above $12,000 to $18,000 | Phased in, 4% to 8% | Phased in, 4.5% to 9% | Phased in, 5% to 10% | Phased in, 5.25% to 10.5% |
| Above $18,000 | 8% | 9% | 10% | 10.5% |
| Maximum for the year | $7,680 | $8,640 | $9,600 | $10,080 |
Age is taken as at 1 January.
Two worked examples, using the 2026 table:
- An illustrative freelance designer aged 40 with net trade income of $60,000 pays 9%, which is $5,400.
- An illustrative tutor aged 30 with net trade income of $15,000 falls in the phased-in band. The formula gives $960, or 6.4% of income.
Net earnings from platform work, such as ride-hailing and delivery, are handled separately. From work year 2025 they are excluded from the net trade income used for this calculation.
Why Keeping Up Matters
MediSave pays for MediShield Life premiums, hospital bills and other approved healthcare costs. The contributions also earn the 4% floor rate.
There are practical consequences for falling behind. Certain licences can be applied for or renewed only if your MediSave payable is settled or you have an active GIRO instalment plan. Lower-income self-employed persons need their MediSave contributions in order to receive Workfare. And voluntary MediSave top-ups are not accepted while compulsory amounts are outstanding without an instalment plan.
If your income arrives in lumps, two options smooth things out. Contribute-As-You-Earn deducts MediSave as certain service buyers pay you. And once nothing is outstanding, you can contribute in advance for future years, which starts the interest earlier.
What Is Optional: Contributions to Three Accounts
You can make voluntary contributions to all three CPF accounts at any time and in any amount, up to a ceiling.
The ceiling is the CPF Annual Limit, $37,740 a year. It covers compulsory and voluntary contributions together. Your room is $37,740 less the compulsory contributions for the year. Anything over is refunded without interest the following year.
The money is split the way an employee’s would be. At 40, CPF Board’s 2026 allocation ratios put about 57% in the Ordinary Account, 19% in the Special Account and 24% in MediSave. The MediSave portion goes towards any MediSave you owe.
It is irreversible. CPF Board states that cash top-ups to the three accounts cannot be taken back.
The Ordinary Account share is the notable part. It can be used for a home, which is something a self-employed person otherwise has no CPF savings for. You can see the split at your age with our CPF contribution calculator.
The Tax Relief Rules
Tax relief is where the self-employed are treated differently from employees. An employee gets no relief for voluntary contributions to three accounts. A self-employed person can.
From Year of Assessment 2026, IRAS applies two layers.
Compulsory MediSave: relief on the full amount contributed in the preceding year.
Voluntary contributions: relief on the lowest of three figures.
- 37% of your assessed net trade income, less the compulsory MediSave relief.
- The Annual Limit of $37,740, less your compulsory contributions.
- The amount you actually contributed.
Back to the designer with $60,000 of net trade income:
- 37% of $60,000 is $22,200.
- Less her compulsory MediSave of $5,400, that leaves $16,800.
- If she contributes $10,000 voluntarily, all $10,000 qualifies, because it is the lowest of the three figures.
- Her total CPF relief is $15,400.
If her chargeable income falls in the 7% band, $10,000 of extra relief saves about $700 of tax. This is an illustration. Your saving depends on your own income and reliefs, and all personal reliefs together are capped at $80,000 a year. Try your figures in our income tax calculator.
Relief follows the date of payment. A contribution must reach CPF Board by 31 December to count for the next Year of Assessment. It is granted automatically from CPF Board’s records.
If you are also an employee, your employment CPF counts towards the same Annual Limit. IRAS states that if your compulsory employee CPF and compulsory MediSave together exceed the limit, no relief is given for voluntary contributions.
The short version: If you are self-employed, MediSave is compulsory above $6,000 of net trade income and fully tax-relieved. Voluntary contributions to all three accounts are allowed up to the $37,740 Annual Limit, with relief capped by a 37% of income test.
Three Accounts or a Special Account Top-Up?
A self-employed person has a second voluntary route: a cash top-up to the Special Account alone, under the Retirement Sum Topping-Up Scheme. It has its own relief of up to $8,000 a year, separate from the relief above.
The difference is in where the money goes.
- Three-account contribution: spread across Ordinary, Special and MediSave. At 40, more than half stays usable for housing.
- Special Account top-up: all of it earns the 4% floor, and all of it is locked for retirement.
We compare the top-up routes in topping up before 55 and the MediSave top-up.
The Trade-Offs for Uneven Incomes
Cash flow comes first. A business needs working capital, and a bad quarter cannot be covered from CPF. Money contributed in a good year is not available in a lean one.
Relief is tied to income. In a year with little or no assessable net trade income, the 37% test leaves little or no room for relief on voluntary contributions.
Nothing is automatic. Without an employer, long gaps in contributions are easy. Small, regular amounts may be more sustainable than one large sum in December.
Rules change. The treatment of compulsory MediSave relief changed from Year of Assessment 2026. Check the current IRAS page each year.
What To Do Next
- Log in to your self-employment dashboard and check for any MediSave payable.
- Estimate this year’s net trade income, then apply the rate table to see what you will owe.
- Work out your voluntary relief ceiling: 37% of net trade income, less compulsory MediSave.
- Decide how much cash your business needs on hand before committing anything to CPF.
- See every CPF strategy by age for the moves that apply once your contributions are in.
