CPF MediSave contributions in 2026 form a mandatory part of Singapore’s Central Provident Fund system, ensuring working Singaporeans and PRs set aside funds for healthcare. MediSave contributions are a percentage of monthly wages, allocated alongside OA and SA/RA contributions based on age. Understanding your MediSave rate and the Basic Healthcare Sum (BHS) is essential for retirement healthcare planning. This is for educational purposes only — consult the CPF Board or a licensed planner for personalised advice.
CPF MediSave Contribution Rates 2026
CPF contributions are split across OA, SA/RA, and MediSave Account (MA). The MA allocation increases with age, reflecting rising healthcare needs in later life. As at 2026: younger workers (35 and below) allocate approximately 8% of monthly wages to MediSave from their total CPF contribution; older age groups (46–55, 55+) receive progressively larger MA allocations. Always verify exact rates with CPF Board (cpf.gov.sg) as rates are reviewed periodically and have been increasing for older workers under the progressive CPF changes.
Basic Healthcare Sum (BHS) 2026
The Basic Healthcare Sum (BHS) is the cap on MediSave Account savings. Once MA reaches the BHS, excess contributions are redirected to SA (before 55) or RA (from 55). For 2026, the BHS is S$75,500 (verify at cpf.gov.sg — adjusted annually on 1 January). Members turning 65 in 2026 have their BHS permanently fixed at this level. The BHS increases annually to account for long-term healthcare cost projections for retirees.
What MediSave Can Be Used For
MediSave funds cannot be freely withdrawn — they are restricted to approved healthcare expenses: Hospitalisation and surgery at approved hospitals; MediShield Life premiums (Singapore’s mandatory national health insurance); Integrated Shield Plan (IP) premiums up to annual withdrawal limits; Approved outpatient treatments including chronic disease management, certain vaccinations, psychiatric treatment; Day surgery at approved facilities; and selected Assisted Reproduction Technology (ART) treatments.
MediSave Top-Ups and Tax Relief
Voluntary MediSave top-ups earn tax relief of up to S$8,000 per year for self top-ups, plus up to S$8,000 more for family member top-ups — total potential S$16,000 tax relief from MediSave top-ups alone. This is separate from RSTU (Retirement Sum Topping-Up Scheme) relief. Voluntary top-ups earn 4% p.a. interest (same as SA rate). Use The Kopi Notes’ CPF MediSave Top-Up Calculator to model your tax savings.
MediSave and Retirement Healthcare Planning
MediSave plays a central role in Singapore’s retirement healthcare strategy. As healthcare costs rise with an ageing population, a well-funded MA provides a meaningful buffer. MediShield Life covers large hospitalisation bills; MediSave covers co-payments — meaning major medical events have manageable out-of-pocket costs for most retirees. For a broader CPF optimisation strategy, the CPF Investment Strategy guide on The Kopi Notes covers all three accounts holistically.
Frequently Asked Questions
What is the MediSave contribution rate in 2026?
MediSave contribution rates vary by age. Younger workers (35 and below) allocate a smaller share; older workers allocate more. Exact rates are published on cpf.gov.sg and reviewed periodically. The progressive CPF changes have been increasing contributions for older workers since 2022.
What is the Basic Healthcare Sum (BHS) in 2026?
The BHS for 2026 is S$75,500 (as set by CPF Board, adjusted annually). Once your MA balance reaches the BHS, excess contributions flow to SA (before 55) or RA (after 55). Members turning 65 in 2026 have their BHS fixed permanently at this level.
Can I withdraw money from my MediSave Account?
No — MediSave cannot be withdrawn as cash. Funds can only be used for approved healthcare expenses: hospitalisation, MediShield Life premiums, approved specialist treatments, and selected outpatient procedures. This ensures funds remain available for healthcare in retirement.
How much tax relief do MediSave top-ups give?
Voluntary top-ups to your own MediSave give tax relief up to S$8,000/year. Top-ups to a family member’s MediSave give up to another S$8,000. Total potential MediSave-related tax relief: up to S$16,000/year (subject to total taxable income).
Does MediSave earn interest?
Yes — MA earns a minimum 4% p.a., the same rate as the CPF Special Account. This is significantly higher than bank savings rates, making MediSave an effective healthcare savings vehicle even before considering the tax relief benefits.