What is Contribute-As-You-Earn (CAYE)?

Under the Contribute-As-You-Earn (CAYE) scheme, a MediSave contribution is required as and when a self-employed person (SEP) earns a service payment. Every time a service fee is paid to the SEP, the corporate service buyers (CSBs) or intermediaries making the payment will first deduct and credit a portion of the service fee to the SEP’s MediSave Account, before paying the remainder of the service fee to the SEP.

CAYE does not change the amount of MediSave contributions SEP have to make based on their net trade income. 

SEPs who provide services to government agencies are automatically enrolled into CAYE.

This information provided here is sourced from the CPF website.