Contribute As You Earn

CAYE contribution rate = (A x B) / C

A: the MediSave contribution rate for your estimated annual Net Trade Income (NTI)¹ and age for the year;

B: your estimated annual NTI¹ for the year²; and

C: your estimated annual revenue for the year²

¹ Your estimated annual NTI is derived using your estimated annual revenue less estimated annual expenses for the year. 
 
² If you did not provide your estimated annual revenue and expenses for the year, it’ll be based on your actual revenue and expenses assessed by the Inland Revenue Authority of Singapore (IRAS) two years ago.

As CAYE contributions are only an estimate of your MediSave contributions, you will still need to declare your actual NTI to IRAS the following year to calculate how much MediSave you need to pay as an SEP. 

If your CAYE contributions are more than your outstanding MediSave payable, you will automatically receive a refund, after offsetting your outstanding MediSave payable from previous years*. However, you may inform the Board in writing if you do not wish to use your CAYE contributions to offset your outstanding MediSave payable from previous years.

If your CAYE contributions are less than your MediSave payable for the year, you’ll need to top up the shortfall. 

*For CAYE contributions made from 2023