Workfare:Top-up $365 Medisave to get $214 cash?

October 3, 2014

Gavin (not his real name) is a self-employed 64 years old Singaporean.

Qualified for $2,140 Workfare

He was elated to receive a letter informing him that as he had worked in 2012 – he has qualified for Workfare of $2,140.

Pay $365 cash to Medisave to get $214 cash Workfare?

However, on further examination, he realised that he had to use cash of $365 to top up his Medisave account, in order to receive his Workfare payment.

90% of Workfare to CPF Medisave account?

According to the Workfare web site – 90% of his Workfare payout is to his CPF Medisave account, with only 10% in cash.

So, he has to pay $365 in cash, in order to get $214 Workfare in cash. His disposable cashflow would be a net decrease of $151.

Have free medical benefits – Medisave no use?

Moreover, since Gavin and his wife are both retired civil servants who get free medical benefits, and they don’t have  any children – Gavin feels that any Workfare to his Medisave account may be quite useless.

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S Y Lee and Leong Sze Hian

P.S. Come with your family and friends to the 5th Return Our CPF protest on 25 October 4 pm at Speakers’ Corner https://www.facebook.com/events/446619505476438/

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About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.