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Lucky draw to encourage Medisave contributions from self-employed
It is Singapore Sweep meets Medisave.
To encourage more low-income, self-employed Singaporeans to contribute to their Central Provident Fund (CPF) accounts, the Government is offering a typically Singaporean lure — a lucky draw.
By contributing at least 10 per cent of their Medisave liability, such workers could end up $5,000 richer. The Medisave Contribution Draw also aims to get informal workers to add to their account.
There will be three quarterly draws in June, September and December next year, where workers could win up to $3,000, and a grand draw in March 2009 with a top prize of $5,000.
Chances for each draw will be awarded in proportion to the amount of Medisave liability paid. But participants who pay up the liability in full before the deadline for the first draw, will have the maximum number of chances — 40 — in all four draws.
To be eligible, one has to be an informal worker with a monthly income of no more than $1,500, and living in a property with an annual value not exceeding $10,000.
Last year, informal workers formed 12 per cent of the Singapore workforce, or almost 300,000 people.
Some of those in the low-income group are more interested in a higher take-home pay, said Minister of State for Manpower Gan Kim Yong.
"Sometimes, by mutual agreement with their employers, they'd rather receive cash than contribute to the CPF, and this will undermine their financial security in the long term, when they grow old," he said.
While Germaine Low, 27, an independent job referrer, thought the odds of winning seemed "slim", she said: "I'll consider contributing as I need some assurance that my retirement period will be paid for."
The draw scheme will run for three years, to be followed by a review.
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