CPF MediSave
CPF MediSave is a mandatory savings account within Singapore’s Central Provident Fund (CPF) that sets aside a portion of your monthly CPF contributions to pay for hospitalisation, approved outpatient treatments, and MediShield Life premiums.
If you’re a working Singapore resident, a portion of every CPF contribution automatically flows into your MediSave Account (MA). As at Q1 2026, the MediSave Account earns 4% per annum — the same floor interest as the Special Account — making it one of the highest risk-free rates available locally. This page explains how MediSave works, what you can use it for, and how to maximise it as part of your overall CPF strategy. This is not financial advice — consult a licensed financial adviser for personalised guidance.
What Is CPF MediSave?
MediSave is the third CPF account alongside the Ordinary Account (OA) and Special Account (SA). It is ring-fenced strictly for healthcare expenses and cannot be withdrawn as cash. Every employed Singaporean and PR contributes a percentage of their monthly wages to MediSave based on age. For employees aged 35 and below, 8% of wages goes to MediSave; for those aged 55–60, the rate rises to 10.5%. Employers do not contribute to MediSave directly — the full allocation comes from the employee’s share of CPF contributions.
MediSave Contribution Rates (2026)
CPF contribution rates are tiered by age. Below is a simplified breakdown of the MediSave allocation as at January 2026:
| Age | Employee’s MediSave % |
|---|---|
| 35 & below | 8% |
| 36–45 | 9% |
| 46–50 | 9.5% |
| 51–55 | 10% |
| 56–60 | 10.5% |
Source: CPF Board, as at Q1 2026.
What Can You Use MediSave For?
MediSave can be used for: hospitalisation at approved hospitals (Class A/B1 wards up to $550/day; Class B2/C up to $450/day); approved outpatient treatments such as chemotherapy, renal dialysis, and certain chronic disease management; MediShield Life premiums (auto-deducted annually); Integrated Shield Plan premiums for the rider component up to $300/year; and approved surgical procedures. Day surgery and selected vaccinations are also claimable. Cosmetic procedures, dental treatment (unless accident-related), and traditional Chinese medicine are not covered.
MediSave Basic Healthcare Sum (BHS)
There is a cap on how much MediSave you can accumulate — called the Basic Healthcare Sum (BHS). For 2026, the BHS is $75,500. Any MediSave contributions above this cap flow into your Retirement Account (if age 55+) or Special Account (before 55). This makes it important to track your MediSave balance, especially if you are approaching the BHS. The BHS is adjusted annually to keep pace with long-term healthcare cost inflation. See also our guide on the CPF Retirement Account and how MediSave interacts with it at age 55.
MediSave vs MediShield Life vs MediFund
Singapore’s healthcare financing involves three “M” schemes. MediSave is your personal savings pot. MediShield Life is a compulsory national health insurance scheme that covers large hospital bills and selected costly outpatient treatments — premiums are paid from MediSave automatically. MediFund is a safety-net endowment fund for Singapore citizens who are unable to pay their bills even after using MediSave and MediShield Life. Understanding the interaction between these three schemes helps you estimate your out-of-pocket exposure for major medical events.
Tips to Maximise Your MediSave
1. Voluntary top-ups earn tax relief — contributions up to $8,000/year qualify for income tax deduction under the Retirement Sum Top-Up Scheme. 2. Watch the BHS cap — if your MA is nearing $75,500, excess contributions flow to SA (before 55) which earns the same 4% rate but cannot be used for healthcare. 3. Use Integrated Shield Plans wisely — private IPs offer more comprehensive coverage but premiums beyond the MediShield Life component must be paid with cash from 2021 onwards, not MediSave riders. Check the retirement calculator to model how your CPF accounts grow over time.