Recently, I went for a consultation at a government hospital through the subsidy route and discovered that the government subsidy rate varies depending on household income. Driven by curiosity, I wanted to figure out how exactly this is calculated.
The key value is PCHI: Per Capita Household Income. PCHI is calculated by dividing the household’s total monthly income by the number of household members.
❝ Monthly household income per capita (PCHI) is calculated by taking the total gross household income divided by the total number of household members. “Gross income” refers to the gross wages or salaries before deduction of CPF contributions and personal income tax
To determine the household size, the government provides a website called HOMES, where you can log in to check your household information. If there are discrepancies, you can also apply to correct them.
The government uses a means-testing process to determine the subsidy rate that residents are entitled to. This involves calculating the household’s total income over the past 12 months (data sourced from IRAS and CPF). The specific calculation details or how to view the results aren’t publicly available online—it’s likely that the government uses internal data to determine the rate. However, if an individual experiences significant financial changes and feels that the subsidy rate determined by the means-test is inaccurate, they can submit an application to request a recalculation.
In Q4 2024, the Ministry of Finance adjusted the subsidy rates, increasing the PCHI thresholds for each bracket. After the adjustment, over a million Singapore residents are now eligible for higher healthcare subsidies.
For example, if a household’s gross monthly income is $20,000:
- In a small household of two people, the PCHI would be $10,000, placing them in the highest bracket with minimal subsidies.
- However, if they live with their parents and have two children, the PCHI drops to $3,300, significantly increasing their subsidy rate.
This change highlights how household size and income distribution can greatly impact subsidy eligibility in Singapore. You might as well log in to HOMES to check whether your household information is accurate, so you don’t miss out on the benefits you are entitled to.
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