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72-year old man who drives Grab because of insufficient CPF payouts ends up having to pay more for Medisave instead

As driving a private-hire vehicle constitutes being self-employed, Mr Clifford is required to make monthly top-ups of S$595 to his MediSave, which works out to more than his actual CPF payout of S$575. “To me this is gangsterism," he said

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A 72-year old man wrote about how he started working and driving a private-hire vehicle in order to earn more money. However, he adds that he now has to pay MediSave top-ups monthly, putting him in a more dire state than before he started working.

Clifford and his wife depend on the former’s monthly Central Provident Fund (CPF) payouts of S$575. Because this amount was insufficient, and they needed more to make ends meet. In a social media post, he wrote, “With a measly sum of $575// how could my wife and I survive”.

“I started to drive Grab, due to my age, I cannot drive too long and the income I was earning did not (require) for me to pay Income Tax”, he wrote.

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However, he added that because he was driving a private-hire vehicle, that constituted being self-employed, and required him to make monthly top-ups of S$595 to his MediSave, more than his actual CPF payout. The man also added that he has around S$60,000 in his MediSave account.

He wrote, “to me this is Gangsterism, if I don’t pay up, my licence will be revoked. Any one out there please help explain WHY?”

“I have $60,000// if I die before that $60,000// is used what happens to MY money, it’s my money why can’t I use it”, he added.

Clifford’s full post is as follows: “I’m 72 years old and I’m receiving $575// monthly of my OWN money from the CPF. My Medisave is around $60.000//.

With a measly sum of $575// how could my wife and I survive, so I started to drive Grab, due to my age, I cannot drive too long and the income I was earning did not for me to pay Income Tax. However, according the the Taxman I have to TOP UP Medisave.

Please see photo, to me this is Gangsterism, if I don’t pay up, my licence will be revoked. Any one out there please help explain WHY?

I have $60,000// if I die before that $60,000// is used what happens to MY money, it’s my money why can’t I use it.

If my Licence is revoked will I be entitled to welfare, oops, this is Singapore, no freebies”.

TISG has reached out to both Clifford and to CPF Board for comment and clarification. /TISG

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