Contribute-As-You-Earn Scheme (CAYE) Pilot for Self-Employed Persons (SEPs)


In March 2018, the Government accepted the Tripartite Workgroup on Self-Employed Persons’ (SEPs) recommendation to introduce a Contribute-As-You-Earn (CAYE) scheme to help SEPs better meet their MediSave obligations. This is aimed to encourage SEPs to save for their healthcare needs through making small and regular contributions as and when SEPs earn a service payment. Under this scheme, service buyers and intermediaries will have the duty to deduct the relevant MediSave contribution for direct transmission to the SEP’s MediSave Account. The service fee net of MediSave contribution is then paid out to the SEP. 


From 1 January 2020, the Government will take the lead to pilot CAYE. Government agencies that directly buy services from SEPs will be required under the CPF Act to deduct the MediSave contribution from the service fee and transmit it to the SEP’s MediSave Account, whenever payments are made. This will affect all payments of service fee to SEPs dated on or after 1 January 2020. The amount of CAYE contribution to be deducted from the service fee would depend on the SEP’s CAYE contribution rate, age, and estimated Net Trade Income.


For further information, please visit the Central Provident Fund Board website. For queries on CAYE, you may write to the CPF Board or call 1800-227-1188.


If you have an existing project with NAC and require clarification on whether your payment will be under CAYE, please email the NAC officer you are in contact with.


Thank you.