Mandatory Insurance Coverage for Contract Workers
- Ms Chia Yong Yong asked if there are plans to mandate insurance coverage for contract workers, including health, personal accident, and life insurance, to be purchased by companies hiring them.
- Lim Swee Say explained that contract workers are classified under contracts of service (employees) or contracts for service (self-employed), with different statutory benefits applying to each.
- Employees under contracts of service are entitled to medical benefits via MediSave contributions and work injury compensation, but there is no mandatory insurance requirement for self-employed individuals under contracts for service.
- Self-employed persons are required to contribute to their CPF MediSave accounts if their annual net trade income exceeds $6,000, which can be used for health insurance premiums.
- Contract workers under contracts of service can contact the Ministry of Manpower if they are not receiving statutory benefits they are entitled to.