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The CPF Board is taking additional measures to remind self-employed persons to contribute to their Medisave account. Legal action will be taken if they continue to ignore reminders.
Under the CPF Act, all self-employed persons who earn a yearly net trade income of more than $6,000 must contribute to their Medisave. Failure to do so is an offence. First time offenders are liable for a fine of up to $2,500 and up to $10,000 for subsequent offences.
As some self-employed persons may have difficulty paying the backlog of Medisave contributions in one lump sum, the Board is prepared to allow a small upfront payment followed by instalment payments. To prevent paying large sums, self-employed persons should use easily accessible channels to make regular monthly contributions.
Medisave is a national healthcare savings scheme to help Singaporeans and Singapore Permanent Residents meet their healthcare needs.
As at 31 May 2004, only about 144,000 or 50 per cent of the self-employed who are liable to pay Medisave have paid their Medisave contributions in full. About 96,000 (or 33%) made partial payments, and 49,000 (or 17 per cent) have not contributed at all.
Self-employed persons are only required to contribute to their Medisave account. They already contribute less than employees who have to contribute to three CPF accounts - Special, Ordinary and Medisave accounts. Therefore, it is especially important for self-employed persons to have sufficient Medisave savings. Unlike most employees, self-employed persons do not enjoy company medical benefits. As illness may strike any time, it is important for self-employed persons to have savings in their Medisave account.
Self-employed persons can also use their Medisave savings to pay for their immediate family’s healthcare needs, or pay the premiums for MediShield or one of the Medisave approved medical insurance schemes for himself and his immediate family members.
We will also work closely with the relevant associations and affiliated professional bodies for the self-employed, to help them understand the importance of contributing to their Medisave.
Members of the public with enquiries can email the Board at Self-Employed@cpf.gov.sg or call the CPF Call Centre at 1800-227-1188 (press 2).
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