Pay-As-You-Earn Medisave Only For Govt Freelancers
According to Manpower Minister Josephine Teo, the Contribute As You Earn (CAYE) scheme will not be extended to the private sector for now.
Starting 2020, freelancers working for the Government will have a portion of their fees automatically channelled towards their Medisave account.
About the CAYE scheme:
- A form of government support for those who are self-employed and working for the government
- Aims to help self-employed workers save for their healthcare needs, retirement adequacy, paying for housing and manage their cash flow.
- Helps workers to accrue the 4% interest earlier as money is put into a worker’s Medisave account as and when fees and commissions are paid.
- The Medisave contribution rate ranges from 4% to 10.5%, depending on the worker’s age and net trade income. Maximum limits range from S$5,760 to S$7,560 a year.
- Overcome the difficulty some self-employed people face in making an annual contribution to their Medisave accounts.
The pilot programme is being conducted to prevent glitches, prevent miscalculations of Medisave contributions and to ensure it is useful.