Singapore CPF Basic Healthcare Sum Guide 2026: What BHS Means for Your Medisave

Last updated: August 2026 | SeaMoneyTips

What is the CPF Basic Healthcare Sum (BHS)?

The Basic Healthcare Sum (BHS) is the minimum amount you need in your CPF MediSave account to ensure you have enough for basic hospitalisation and approved outpatient treatments during your retirement years. As of 2026, the BHS stands at S$70,500. Once your MediSave balance reaches this amount, any excess contributions from your employer or your own voluntary top-ups will be redirected to your Special Account (SA) or Retirement Account (RA).

The BHS is reviewed annually by the CPF Board and typically increases each year to keep pace with rising healthcare costs. Understanding how the BHS works is essential for every Singapore resident because it directly affects your healthcare coverage and retirement savings strategy.

How Does the Basic Healthcare Sum Work?

The CPF system divides your savings into four accounts: Ordinary Account (OA), Special Account (SA), MediSave Account (MA), and Retirement Account (RA). The BHS specifically governs how much can remain in your MediSave account before overflow rules kick in.

When your MediSave balance is below the BHS, all mandatory CPF contributions designated for MediSave go directly into that account. Once your MediSave balance hits the BHS ceiling, the excess MediSave contributions are redirected to your Special Account for members under 55, or to your Retirement Account for members aged 55 and above.

This means the BHS acts as a cap on your MediSave savings. For most working Singaporeans, this is not an immediate concern because the annual BHS increase generally outpaces the rate at which MediSave contributions accumulate. However, for high-income earners or those who make significant voluntary MediSave top-ups, understanding this mechanism is important for financial planning.

BHS Amount History and 2026 Update

The BHS has been increasing steadily over the years as the CPF Board adjusts for higher healthcare costs. Here is a summary of recent BHS figures:

The BHS increase in 2026 was higher than in the previous two years, reflecting the government anticipation of rising medical inflation and an ageing population. The CPF Board has indicated that the BHS will continue to be reviewed annually to ensure adequate healthcare coverage for all members.

Who Needs to Worry About the BHS?

For the majority of Singapore residents, the BHS is not something to worry about in practice. Here is why:

First, the monthly MediSave contribution for most employees is around S$300 to S$600 depending on age and income. At this rate, it takes many years of continuous employment to reach the BHS ceiling. The average working Singaporean will not hit the BHS until well into their 50s or later.

Second, MediSave withdrawals for approved medical expenses, hospitalisation, and health insurance premiums reduce your MediSave balance, making it even harder to reach the BHS ceiling.

However, the following groups should pay closer attention to the BHS:

• High-income earners whose MediSave contributions are substantial each month
• Self-employed individuals who make voluntary MediSave contributions for tax relief
• Early retirees who have accumulated significant MediSave balances over their career
• Those making voluntary Medisave top-ups for tax relief purposes

MediSave Contribution Allocation by Age

The percentage of your monthly CPF contribution that goes into MediSave depends on your age. Here is the breakdown for 2026:

For a member earning S$5,000 monthly, the MediSave contribution ranges from S$400 to S$650 per month depending on age. Over a 30-year career, this can accumulate to S$144,000 to S$234,000 before considering withdrawals, which would comfortably exceed the BHS ceiling.

What Happens When MediSave Exceeds the BHS?

When your MediSave balance reaches the BHS, any new MediSave contributions from your employer are redirected as follows:

For members below 55 years old: excess contributions go to your Special Account (SA), which earns a higher interest rate of 4% per annum and can be used for retirement or CPFIS investments.

For members aged 55 and above: excess contributions go to your Retirement Account (RA), which is used to form your Retirement Sum for CPF LIFE payouts.

This redirection is automatic. You do not need to apply for it or take any action. The CPF Board handles the overflow routing each month when contributions are credited.

Voluntary MediSave Top-Ups and the BHS

Many Singapore residents make voluntary MediSave top-ups for the dual benefit of growing their healthcare savings and enjoying tax relief. Under the CPF top-up scheme, you can contribute up to S$8,000 per year to your own MediSave and an additional S$8,000 to your family members MediSave accounts, for a total tax relief of up to S$16,000.

However, if your MediSave balance is already at or above the BHS, any voluntary top-up amount that would push your balance over the ceiling will be redirected to your SA or RA. This means you will not see your MediSave balance increase beyond the BHS, but the redirected amount still earns CPF interest and contributes to your retirement savings.

For tax planning purposes, this redirection does not affect your tax relief eligibility. You still receive the full tax relief for the voluntary top-up amount regardless of where the funds ultimately land in your CPF accounts.

BHS vs Enhanced Healthcare Sum (EHS)

In addition to the BHS, there is also the Enhanced Healthcare Sum (EHS). The key differences are:

The EHS is a voluntary target. Unlike the BHS, exceeding the EHS does not trigger automatic redirection of funds. Members who want a larger healthcare safety net can continue building their MediSave beyond the EHS without any overflow. Financial planners often recommend aiming for the EHS if you are concerned about future medical costs, especially for chronic conditions or long-term care needs.

How to Check Your MediSave Balance

You can check your MediSave balance and BHS progress through several channels:

1. CPF website - Log in at cpf.gov.sg and navigate to My Statement to see your MediSave balance, interest earned, and BHS progress.
2. CPF Mobile app - Download the app from the App Store or Google Play for quick access to your account balances on the go.
3. CPF contribution history - View your monthly contribution breakdown to see how much is flowing into MediSave each month.
4. Annual statement - The CPF Board mails an annual statement summarising your total CPF balances across all accounts.

Checking your balance regularly helps you plan your voluntary top-ups strategically and understand how close you are to the BHS ceiling.

Tax Relief for MediSave Top-Ups

Voluntary contributions to your own or family members MediSave accounts qualify for tax relief under Section 37H of the Income Tax Act. The relief is capped at S$8,000 for top-ups to your own account and S$8,000 for top-ups to family members, for a combined maximum of S$16,000 per year.

Eligible family members include your spouse, parents, grandparents, siblings, children, and parents-in-law. The top-up must be made in cash (not via CPF transfers from other accounts) to qualify for tax relief.

For a taxpayer in the 15% tax bracket, the maximum tax savings from MediSave top-ups is S$2,400 per year. For those in the 22% bracket, it rises to S$3,520. This makes voluntary MediSave top-ups one of the most tax-efficient ways to build your healthcare and retirement savings simultaneously.

Common Questions About the BHS

Key Takeaways

• The 2026 Basic Healthcare Sum is S$70,500, reviewed annually by the CPF Board
• When MediSave reaches the BHS, excess contributions are redirected to your SA or RA automatically
• Most Singaporeans will not hit the BHS until their 50s or later due to regular withdrawals for healthcare
• Voluntary MediSave top-ups still qualify for tax relief even when redirected from MediSave
• The Enhanced Healthcare Sum (EHS) of S$100,000 is a voluntary target for those wanting extra healthcare coverage
• Check your balance regularly on cpf.gov.sg or the CPF Mobile app to track your progress

Conclusion

The Basic Healthcare Sum is a key component of Singapore CPF healthcare planning. While most members will not face overflow issues for many years, understanding how the BHS works helps you make smarter decisions about voluntary top-ups, tax planning, and retirement preparation. If you are a high-income earner or making significant voluntary contributions, factor the BHS into your financial strategy to ensure your MediSave is optimised alongside your SA and RA balances.

For related topics, check out our guides on CPF top-up strategy for tax relief, CPF interest rates, and MediSave withdrawal rules.