(updated 23 May 2020)

(Please note that the information contained in these pages are provided – “as is”, – with no guarantees of completeness, accuracy, – or timeliness. SAMPP assumes no responsibility or liability for any errors or omissions.)

Contribute-As-You-Earn Scheme

In March 2018, the Government accepted the Tripartite Workgroup on Self-Employed Persons’ (SEPs) recommendation to introduce a Contribute-As-You-Earn (CAYE) scheme to help SEPs better meet their MediSave obligations. This is aimed to encourage SEPs to save for their healthcare needs through making small and regular contributions as and when SEPs earn a service payment. Under this scheme, service buyers and intermediaries will have the duty to deduct the relevant MediSave contribution for direct transmission to the SEP’s MediSave Account. The service fee net of MediSave contribution is then paid out to the SEP.

From 1 January 2020, the Government will take the lead to pilot CAYE. Government agencies that directly buy services from SEPs will be required under the CPF Act to deduct the MediSave contribution from the service fee and transmit it to the SEP’s MediSave Account, whenever payments are made. This will affect all payments of service fee to SEPs dated on or after 1 January 2020. The amount of CAYE contribution to be deducted from the service fee would depend on the SEP’s CAYE contribution rate, age, and estimated Net Trade Income.