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Organization : Central Provident Fund Board
Facility : Contribute-As-You-Earn (CAYE) Scheme
Country : Singapore
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CAYE helps Self-Employed Persons (SEPs) contribute to their MediSave as they earn. For your convenience, government agencies will deduct and transmit a portion of your payment into your MediSave account.

About Scheme

Under Contribute-As-You-Earn (CAYE), a MediSave contribution is required as and when a Self-Employed Person (SEP) earns a service payment.

Every time a payment is made to the SEP, the agency/company making the payment will first deduct and credit a portion of the service payment to the SEP’s MediSave Account, before paying the remainder of the service payment to the SEP.

CAYE does not change the amount of MediSave contributions SEPs have to make based on their Net Trade Income (NTI).

Who Needs to Participate?

** From 1 January 2020, the Government, as a service buyer, will pilot Contribute-As-You-Earn (CAYE) to help Self-Employed Persons (SEPs) build up their MediSave savings.

** SEPs who are individual freelancers or sole proprietors and were awarded jobs with Government agencies will automatically be enrolled into CAYE from 1 January 2020.

How Much I Need to Contribute?

Under Contribute-As-You-Earn (CAYE), the amount of MediSave contribution deducted from your service payment is based on your estimated annual revenue and expenses for the year.

Your CAYE contribution rate is determined by the following formula

CAYE contribution rate = (A x B) / C

A is the MediSave contribution rate for your estimated annual Net Trade Income (NTI)1 and age for the year;
B is your estimated annual NTI1 for the year2; and
C is 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 will be based on your actual revenue and expenses assessed by IRAS two years ago.

A floor CAYE contribution rate of 2% will apply if you earned an annual Net Trade Income (NTI) of more than $6,000 two years ago.

To ensure that your CAYE contribution rate reflects your business outlook for the year accurately, please estimate your revenue and expenses by logging in to My Self-Employed Home using your SingPass, then select My CAYE – Contribute-As-You earn > Update.


** Through making smaller and more regular MediSave contributions as and when you receive a payment, Contribute-As-You-Earn (CAYE) makes saving for your healthcare needs easier.

Your MediSave savings can be used to pay for you and your family’s out-of-pocket healthcare expenses and MediShield Life premiums.

** As a Self-Employed Person (SEP), there are many issues that require your attention. CAYE is an easy and hassle-free way to help free up more of your time.

For your convenience, the agency/company you provided a service to will transmit a portion of the payment to your MediSave Account as and when you get paid.

This will be helpful for SEPs whose incomes may be seasonal. CAYE can also help grow your money as you start to earn interest of up to 5% on your MediSave savings earlier.

** To address transitional issues faced by SEPs during the CAYE pilot, SEPs who make MediSave contributions under CAYE in 2020 and 2021 will receive a one-off matched MediSave contribution from the Government, up to $600 across both years.


1. As an self-employed person (SEP) who provides services to Government agencies, how will I be enrolled into Contribute-As-You-Earn (CAYE)?
You will be automatically enrolled into Contribute-As-You-Earn (CAYE) when you receive a service payment from a Government agency you have provided services to as a self-employed person (SEP).

You will receive a letter from CPFB when you receive your first payment via CAYE. You will also receive a notification each time you receive a payment via CAYE.

2. Will Self-Employed Persons (SEPs) who provide services to the private sector be mandated to participate in Contribute-As-You-Earn (CAYE)?
The Government, as a service buyer, has piloted Contribute-As-You-Earn (CAYE) from 1 January 2020. There are currently no plans to extend CAYE into the private sector. Nonetheless, companies in the private sector are encouraged to voluntarily adopt CAYE.

3. How do I estimate my annual revenue and expenses for the year?
You can estimate your annual revenue and expenses for the current year based on the actual revenue and expenses you earned last year.

You can adjust your estimated annual revenue and expenses whenever you foresee any changes in revenue (e.g. increase in number of jobs in the current year) or expenses (e.g. increase in business cost).

4. When should I adjust my Contribute-As-You-Earn (CAYE) contribution rate?
You can adjust your Contribute-As-You-Earn (CAYE) contribution rate by updating your estimated revenue or expense whenever you foresee any changes in revenue (e.g. increase in number of jobs in the current year) or expenses (e.g. increase in business cost).

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