Govt studying roll-out of CAYE Medisave scheme to private sector: Tan See Leng
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THE government is studying if its Contribute-As-You-Earn (CAYE) scheme can be extended to the private sector.
This comes amid an "encouraging" take-up of CAYE in the public sector, said Minister for Manpower Tan See Leng in a speech at the PropNex Mid-Year Convention 2021.
Under the CAYE scheme, self-employed persons (SEPs) who provide services directly to the public sector are able to have their Medisave contributions transferred by the government, as and when they earn such income.
The government sets aside a portion of the SEP's service payment as Medisave contributions before paying out the rest of the amount. By doing so, SEPs are able to make small and regular contributions while working versus making lump-sum contributions when there is little or no income, a problem some may face during this period, Dr Tan said.
"We will continue to consult with all the key industry stakeholders, including industry and SEP associations, before doing so," he added.
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