What happens if the MediSave contributions I made via Contribute As You Earn (CAYE) are lower than my MediSave payable for the year?
If your total CAYE contributions are lower than your MediSave payable for the latest year, you will be required to top up the remaining amount. You’ll be notified accordingly, and you can choose to make payment via a lump-sum payment(s) or sign up for monthly GIRO instalments.
Example:
Based on his estimated income of $21,000 for 2023, Sam contributed $2,100 via CAYE. In the following year, he declared that he earned a higher NTI of $30,000 for 2023. As such, Sam’s MediSave payable for his work done in 2023 is $3,000. Sam will have to top up the shortfall of $900.
This example is illustrated within the table below:
|
Estimated 2023 NTI |
$21,000 |
|
CAYE contributions in 2023 |
$2,100 |
|
(After 2023 NTI declaration) | |
|
Declared 2023 NTI |
$30,000 |
|
MediSave payable for work done in 2023 |
$3,000 |
|
Shortfall Sam has to top up |
$900 (i.e. $3,000 - $2,100) |
This information is sourced from CPF
Related questions
What happens if the MediSave contributions I made via Contribute As You Earn (CAYE) are higher than my MediSave payable for the year?
How will participating in Contribute As You Earn (CAYE) affect my MediSave contributions payable?
What happens if the amount of MediSave contributions the self-employed person has made via Contribute As You Earn (CAYE) is lower than his MediSave payable for the year?
Under Contribute As You Earn (CAYE), how much MediSave contribution would I have to make from my service fee?
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