Efforts to Help Freelancers and Workers in Gig Economy with Medical and Retirement Adequacy

33 Mr Desmond Choo asked the Minister for Manpower whether the Ministry can provide an update on the efforts to help freelancers and workers in the gig economy with their medical and retirement adequacy.

Mr Lim Swee Say: Individuals working in the gig economy can be employees or self-employed persons, commonly known as freelancers.

For those who are employees, they and their employers are required to make Central Provident Fund (CPF) contributions for their healthcare and retirement needs. The Government also helps those who are in the lower-income group to build up their CPF savings through Workfare top-ups.

As for those who are self-employed, they are required to save for healthcare through mandatory MediSave Account contributions. They can also save for retirement by making cash top-ups to their Special and Retirement Accounts and enjoy tax relief for doing so. Lower-income self-employed persons may also be eligible for Workfare top-ups from the Government.

In view of the changing employment profile driven by technology and new business models, as announced at the Committee of Supply 2017, the Ministry of Manpower has formed a tripartite workgroup to study and holistically address the key issues that self-employed persons face, including saving for healthcare and retirement. The workgroup is currently studying the issues and consulting stakeholders and will provide an update on its findings in due course.