Recently, I met up with a friend who is a taxi driver who has just switched over from a taxi driver wtih ComfortDelgro to Uber and GrabTaxi and he said the government has made it tougher for GrabTaxi drivers because of Medisave.

How has Medisave affected the drivers?

According to onemotoring.sg on LTA guidelines for Application of Taxi Vocational License:

“To apply for a Vocational Licence, you must meet the following requirements:
a. Payment of Medisave Contributions by Self-Employed Persons”

The Grabtaxi taxi driver said that his taxi license was revoked and not being able to renew as he is not able to pay the medisave “debt” which he accumulated over S$10,000.

Photo by Chris
Photo by Chris

However, despite “owing” his CPF Medisave money, it is not an arrestable offense. The only down side is that ComfortDelgro did not renew his license and forced him to be jobless unless he pay up.

Photo by Chris
Photo by Chris

There is however no room for negotiation on license renewal, except to pay for an expensive installment fee like $200 a month, which is a lot to a taxi driver who earns about S$2,400 a month.

A taxi driver pay a daily rent of $120 and petrol cost of $50 a day.

On average a taxi driver earns about $200-$250 per day that make it $80 a day of profit left for him. However, according to the CPF, the taxi driver earns about $2400 per month, which gives them an annual income of $28,800, legislated by law to pay medisave.

As taxi drivers grow old, they have to pay more Medisave contributions. have to pay a min of 8% into your medisave when you are at age 35 and below , 9% for age 35 to 45 , 10% for age 45 to 50 and lastly 10.5% for age above 50.

Do you think the Government even care about the taxi drivers if at all?

Chris

Co-edited by Alex Tan

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