MediSave as you earn (§2.11.1 proposal 1)

Self-employed hawkers are billed for MediSave once a year, after the tax assessment of the year before. They may pay by monthly GIRO, and the stall licence already enforces payment: SFA will not renew it with MediSave arrears unless the hawker is on a GIRO plan. What nothing does is collect as they earn, so the bill can land on a lean month. CPF already deducts MediSave as payments arrive for self-employed people serving government agencies, and the 2018 Tripartite Workgroup asked for contribute-as-you-earn as well as licensing controls; the proposal finishes the second half. Its value is a smoother cash flow, not fewer arrears. The change is administrative, carried out by CPF Board with payment acquirers.

Who pays

The library gives this mechanism no who-pays tag of its own.

What it costs

Administrative

Administrative · CPF Board with payment acquirers

What it builds on

Contribute-as-you-earn for the self-employed on government contracts; monthly platform deductions; the 2018 Tripartite Workgroup, which asked for contribute-as-you-earn as well as licensing controls (§2.11.1).

The ask of Government

Decision

Stallholder retirement match and MediSave as you earn

Instrument

Administrative · CPF Board with payment acquirers

Fiscal cost

Administrative

Gap closed

A bill that arrives a year late and lands on whatever month it lands on; the licence already makes hawkers pay, but cannot spread the payment

From §2.11.1, §2.11.2.

Who gains

Hawkers

The bill is paid a little at a time as the takings come in, rather than out of a lean month a year later (§2.11.2).