Percentage of Self-employed Persons Not Meeting MediSave Contribution Obligations in Full

Mr Murali Pillai asked the Minister for Manpower (a) in each of the past five years, what percentage of self-employed persons (SEPs) did not meet their MediSave contribution obligations in full; (b) what is the corresponding dollar value of the shortfall in MediSave contributions by SEPs for each year in the same period; and (c) what steps are being taken to enhance the number of SEPs subscribing to the Contribute-As-You-Earn scheme to allow them to make MediSave contributions as they earn.

Over the last five years, the percentage of SEPs who did not keep up with MediSave contribution obligations based on declared incomes1 stayed at around 25%. Over the same period, slightly more than half of these SEPs had less than $3,000 in outstanding MediSave liabilities each year.

In 2020, the Government piloted the Contribute-As-You-Earn (CAYE) scheme with a small group of SEPs who contract with the Government, to help them meet their MediSave obligations by making small and regular contributions as they earn. Almost all the SEPs in this group participated and made CAYE contributions. Following the pilot, the Government is studying the feasibility of extending the CAYE scheme to SEPs in the private sector.