SINGAPORE – There are no plans for now to extend to the private sector a scheme where the Government helps self-employed people make small, regular contributions to their Medisave accounts instead of a yearly lump sum.

Instead, Manpower Minister Josephine Teo on Tuesday (Aug 20) encouraged 4,000 realtors to make voluntary contributions to their Central Provident Fund, if they can afford it.

Speaking at property firm PropNex’s annual convention, Mrs Teo was outlining various forms of government support for self-employed people.

These include the “contribute-as-you-earn” scheme that was first mentioned during the debate on the Manpower Ministry’s budget in March.

Under the pilot scheme, the Government – as service buyers – will start making regular contributions in the first quarter of next year to the Medisave accounts of self-employed people, some of whom have difficulty doing so on an annual basis.

The move would also provide more convenience to self-employed people, and help them get the 4 per cent Medisave account interest earlier.

Mrs Teo noted that the most recent labour force survey in 2018 showed that 8 per cent of the workforce did self-employed work as their main job. The proportion has remained stable at between 8 per cent to 10 per cent in the past decade.

In absolute numbers, there were fewer self-employed people in 2018 – 182,100 compared with 190,900 in 2017.

Mrs Teo also pointed to the challenges facing the self-employed, and listed recommendations made by a tripartite workgroup that looked at issues faced by self-employed workers.

These include setting a standard last March for businesses to make clear the working arrangements with self-employed people, including timely payments.

She encouraged PropNex to join about 570 businesses that have signed the standard.

Mrs Teo said self-employed people, including property agents, are part of the job fabric here.

“The Government sees self-employment as expanding the options for work. It is up to you to decide.

“If it works well for you, good. If it doesn’t, there are other career options and you can get help to move.”

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