News Release by:
Central Provident Fund Board
7 August 2008 --
The Board would like to remind self-employed persons and informal workers who have worked at least three months between January and June 2008 to make Medisave contributions by 31 August 2008, so that they can receive the first WIS payment for work year 2008 on 1 October 2008.
2. They can contribute to their Medisave using one of the following ways:
| |
i. |
Cash/NETs at any of the 62 Singapore Post branches island-wide; |
|
|
ii. |
NETs/Cashcard at AXS machines; |
| |
iii. |
Cheque made payable to CPF Board at any of the 5 CPF Board Service Centres; |
| |
iv. |
E-payment at www.cpf.gov.sg, using a DBS/UOB/Citibank Internet Banking
account. |
3. Self-employed persons and informal workers who contribute to their Medisave stand to receive up to $1,600 in WIS for work done in the whole of 2008, of which 50% (or up to $800) will be paid out during the 1 October 2008 payment. WIS will be credited to the Medisave Account of self-employed persons and informal workers. Please refer to Annex A for examples of Medisave contributions and corresponding WIS payment they can receive.
4. Employees who meet the WIS criteria will also receive the WIS payment on 1 October 2008. They do not need to do anything. The CPF Board will automatically verify the employment and income of eligible employees from their CPF contribution records, and pay the WIS accordingly. They will receive their WIS in both cash and CPF.
Medisave Contribution Draw (MCD) for Work Done in 2007
5. Separately, on 30 August 2008, the Board will be conducting its second Medisave Contribution Draw for work done in 2007. The draw will be held at Toa Payoh Hub, in conjunction with NTUC's National Day Observance Ceremony cum Roadshow for contract and casual workers.
6. Self-employed persons and informal workers are encouraged to make Medisave contributions for their 2007 income. They stand to win up to $3,000 in cash prizes in the MCD each quarter. The sooner they pay their Medisave, the more chances they have to win. Those who have fully paid up their Medisave contributions for work done in 2007, on or before 31 July 2008 would have the maximum chances of winning in the second Draw.
ANNEX A
BACKGROUND ON WIS
WIS is paid to older low wage workers to encourage them to work and to improve their retirement adequacy. WIS is conditional on regular work and is paid twice a year. To qualify for WIS for work done in 2008, workers must meet the following criteria:
| a. |
Be a Singapore Citizen; |
| b. |
Be above 35 years of age as at 1 January 2009; |
| c. |
Have worked at least three months in any six-month period in 2008; |
| d. |
Earned an average monthly income of below $1,500; and |
| e. |
Stayed in a property with an Annual Value of not more than $10,000 as at 31 December 2007 |
The WIS applicable to self-employed persons and informal workers are as shown in Table 1.
Table 1: Self-employed Medisave contributions for first WIS Payment for work done in 2008
|
If your estimated monthly income for
work in 2008 is : |
|
And your age in 2008 is : |
| 35 years |
36-44 years |
45 years |
46-54 years |
55-59 years |
≥60 years |
| Contribute by 31 Aug
2008: |
|
$200 |
Contribute |
$26 |
$30 |
$30 |
$34 |
$34 |
$34 |
| Receive |
$120 |
$120 |
$160 |
$160 |
$193 |
$193 |
| $400 |
Contribute |
$52 |
$60 |
$60 |
$68 |
$68 |
$68 |
|
Receive |
$240 |
$240 |
$320 |
$320 |
$398 |
$398 |
| $600 |
Contribute |
$78 |
$90 |
$90 |
$102 |
$102 |
$102 |
| Receive |
$300 |
$300 |
$400 |
$400 |
$520 |
$560 |
| $800 |
Contribute |
$104 |
$120 |
$120 |
$136 |
$136 |
$136 |
| Receive |
$300 |
$300 |
$400 |
$400 |
$560 |
$680 |
| $1,000 |
Contribute |
$131 |
$150 |
$150 |
$170 |
$170 |
$170 |
| Receive> |
$300 |
$300 |
$400 |
$400 |
$600 |
$800 |
| $1,200 |
Contribute |
$312 |
$360 |
$360 |
$408 |
$408 |
$408 |
| Receive |
$180 |
$180 |
$240 |
$240 |
$360 |
$480 |
| $1,400 |
Contribute |
$494 |
$570 |
$570 |
$646 |
$646 |
$646 |
| Receive |
$60 |
$60 |
$80 |
$80 |
$120 |
$160 |
Example
Mr Harun is a 40-year old self-employed person whose average monthly income in the first half of 2008 was $800. To receive his first WIS payment of $300 by 1 October 2008, he would need to contribute $120 into his Medisave by 31 August 2008 (please refer to table above).
He would receive his second WIS payment for work done in the whole of 2008 in May 2009 if he had met the WIS criteria, declared his net trade income for 2008 to IRAS or CPF Board, and paid up his Medisave contributions for his 2008 income. More information on the second WIS payment will be available from November 2008 onwards.