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Average Income Option

Claimable Income

Your Make-Up Pay claim will be based on the average net self-employment income earned in the 6 months immediately preceding your Operationally Ready National Service (ORNS) activity.

The eligible types of income include:

  • Net profit (based on the average total of your past 6 month’s net income. Average operating expenses must be discounted)
  • Salary (applicable for salaried partners such as lawyers)
  • Net Commission for sales agents (average operating expenses must be discounted)
  • Fixed expenses (e.g. rental, staff salary, CPF contributions) Please note that fixed expenses are claimable only if your company is closed during your ORNS activity, and if your Make-Up Pay claim is submitted at least 2 weeks before the commencement of your ORNS activity

If you are an insurance agent, MINDEF will process your Make-Up Pay claim based on the eligible components listed below (average operating expenses must be discounted):

  • 1st Year commission
  • Single Premium commission
  • Production commission (based on personal sales effort)
  • Renewal commission (at 42% of 1st year commission)
  • Personal Accident commission
  • General Insurance commission


 Non-claimable Income

  • Interest Income earned from Fixed Deposits
  • Rental Income
  • Profit from Sale of Fixed Assets
  • Overriding Commission
  • Bonus derived from multi-level marketing
  • Ex-gratia Income
  • Hire-purchase instalment payments
  • Capital repayment on assets
  • Capital gain
  • Personal expenses, e.g. mobile phone bill, utility bill, parking fees, etc.


 Supporting Documents

You will need to submit the following documents to support your claim:

  • Profit & Loss (P&L) statement for the 6 months immediately preceding your ORNS activity
  • Latest Available Year-end P&L statement declared for taxation
  • Latest Income Tax Return (Form B)
  • Notice of Assessment (NOA)
  • Partnership Income Tax Return (Form P)

You will also need to provide a copy of your Contract Agreement or Letter of Appointment if you are claiming under this option for the first time, or when there are changes to your previous claims.

But if you are an insurance agent or manager, you will need a commission statement (certified by your company) showing the breakdown of your commissions paid for the year preceding your ORNS activity.