Voluntary Medisave Top Up for Workfare Income Supplement Scheme Results in Huge Liability

In order to qualify for the Workfare Income Supplement Scheme (WIS) for $320, my babysitter mother making $400 per month made a voluntary Medisave account contribution of $67 last year. To her horror, CPF board enrolled her into the Medisave For Self-Employed Scheme backdating from 2003 to present, meaning she has to make a further cash top-up of $2813 for the premiums due.

It gives little incentive for the most needy group to top-up their Medisave because the cash liability clearly outweighs the supplement received mostly in CPF accounts. In fact they are penalized financially in terms of their cash flow and I shudder to think of compounded late payment fees that will eventually reduce the WIS amount received to nought.

I hope the CPF board and the relevant authorities will comment on this substantial consequent Medisave cash liability, the benefits to the needy, and how the backdating was determined to start from 2003.

Jerald Lim