Medisave: Earn $500 more – rate increased 100%?

I met an elderly self-employed person who complained that because he struggled to earn more in order to make ends meet from $12,000 to $18,000 a year – he was very unhappy that despite being a low-income person – his Medisave contribution rate doubled (increased by 100 per cent).

I was stumped by his remarks. So, I used the CPF Medisave contribution calculator to test what he said to try to figure out what is going on.

For age 50 and above – the self-employed Medisave contribution for $12,000 and $18,000 annual income is $630 (5.25 per cent) and $1,890 (10.5 per cent), respectively.

So, he was correct – the Medisave contribution rate increased gradually from 5.25 to 10.5 per cent, for annual income of $12,000 to $18,000.

From the perspective of this elderly low income self-employed person who was already earning very little – 21 per cent ($1,260) of the additional $6,000 (from $12,000 to $18,000) which he earned went to Medisave.


Leong Sze Hian



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6 Responses to “Medisave: Earn $500 more – rate increased 100%?”

  • Amos exposed PAP hypocrisy:

    This demonstrates (AGAIN) the greed of PAP. They want to spend as little as possible on Singaporeans for healthcare so they can spend more on foreigners and for “vote-buying” during elections.

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  • Sickies Deserve It:

    The whole PAP culture evolves around GREED, from selfish self-reward with obscene pay to creative amendments to retain your CPF for as long as possible, this is a self-serving rouge government disguised as angels in white.

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  • C'est la vie:

    Thomas Jefferson famously said,
    “I predict future happiness for Americans, if they can prevent the government from wasting the labors of the people under the pretense of taking care of them”,

    unless of course, as Edward R Murrow quipped,
    “A nation of sheep will beget a government of wolves”,

    which will ultimately take us to Gerald Ford whom believes,
    “A government big enough to give you everything you want is a Govt big enough to take from you everything you have”,

    which ultimately, must be a lesson learnt and remembered for always, as highlighted by Ronald Reagan,
    “As Govt expands, liberty contracts”.

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  • LIONS:

    we need to put in more effective oppo MPs than what we have now to reclaim our sgporean dignity,our jobs n CPF.

    oppo unity is lacking and must not be further compromised.
    i sincerely hope to see someone from the oppo comes out to take the lead to unite the oppo sgs so that they can apply synergy and win more votes n seats.

    procrastinating oppo unity is a sure way to oppo’s gradual demise.

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  • Dishonest Evil Greedy Wayang:

    Just like the CHAS, PAP is just an evil greedy wayang party. Everything from them is just listen and feel good only. One cheapskate ministar already said feels shiok whenever looking at his CPF statement. He had unwittingly disclosed what the PAP mantra is.

    You are stupid to believe in anything PAP.

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  • Harder Truths:

    The government expenditure is 120% of GDP.
    It is eating us out of home and savings.

    Governments with such a high level of expenditure have collapsed.
    This will happen to $G – we are not special or above the laws of economics.

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