Example 1: ordinary versus portable benefits
With employee remuneration of S$100,000 and medical spending of S$2,500, the company without portable medical benefits has a 1% cap of S$1,000: S$1,000 deductible and S$1,500 disallowed. With the portable arrangement, the source applies a 2% cap: S$2,000 deductible and S$500 disallowed. The spending itself has not changed; the qualifying arrangement changes the cap.
Example 2: ordinary expenses plus ad-hoc MediSave
The second example assumes remuneration of S$3 million, no portable-benefit arrangement, and ad-hoc employee MediSave contributions subject to the source’s S$2,730 per-employee annual limit. Ordinary medical spending remains capped at 1%, or S$30,000; the overall deduction is capped at 2%, or S$60,000. The additional deduction is the lower of the contributions and S$60,000 less the ordinary deduction. The source is undated; its per-employee figure belongs to this example and should be checked for the actual contribution period.
Scenarios 1 and 2
Scenario 1 has ordinary costs S$27,000, ordinary deduction S$27,000 and contributions S$15,000. Remaining combined-cap room is S$33,000, so the additional deduction is S$15,000 and total S$42,000. Scenario 2 has costs S$45,000, ordinary deduction limited to S$30,000 and contributions S$15,000. Room is S$30,000, so the additional deduction remains S$15,000 and total S$45,000.
Scenarios 3 and 4
Scenario 3 has costs S$82,000, ordinary deduction S$30,000 and contributions S$45,000. Only S$30,000 combined-cap room remains, producing total S$60,000. Scenario 4 has costs S$27,000, ordinary deduction S$27,000 and contributions S$45,000. Room is S$33,000, so the additional deduction is S$33,000 and total S$60,000. Do not add all contributions without first applying the remaining-room test.
Official source
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