National Taxi Association And Tripartite Partners Jointly Introduce "Drive And Save" Scheme

22 Jul 2010

NTA successfully garnered the support of the Ministry of Manpower NTA and the 7 taxi companies to sign Memorandum of Understanding

1. The formation of the National Taxi Association (NTA) on 26 June 2010 has given it more clout to "Do More, Do Good, Do Well and Do Together" and to garner greater benefits for taxi drivers at the industry level.  As a stronger and more unified voice, the NTA successfully inked an agreement with all seven taxi companies in Singapore to introduce the “Drive And Save” (DAS) scheme.  A Memorandum of Understanding (MOU) was signed at the Singapore Conference Hall today.  Please refer to Annex A for the MOU.
2. The DAS scheme is NTA’s first initiative to enhance the welfare of drivers since its inauguration.  Under the DAS scheme, principal hirers can enjoy contribution of $0.50 per day from their taxi companies if they contribute at least $0.50 a day to their Medisave Account.  This could add up to more than $360 in Medisave contributions for each principal hirer per year.
3. The Ministry of Manpower (MOM) has given its support to the scheme.  The Central Provident Fund (CPF) Board will be working closely with the NTA and the taxi companies to implement the scheme from January 2011.  Taxi drivers who meet the eligibility criteria will also receive their Workfare Income Supplement (WIS) from the Government if they have made the relevant Medisave contributions.  Please refer to Annex B for more information on WIS for self-employed persons.
4. Minister for Manpower Mr Gan Kim Yong who witnessed the MOU signing said, “NTA’s Drive and Save Scheme will go a long way in helping taxi drivers save for their future healthcare needs and bears testament to the importance that taxi companies place on the welfare of their drivers.  I commend the seven taxi companies who signed the MOU this morning for their generosity and encourage members to take advantage of the scheme.  This scheme is an example of what can be achieved when the tripartite partners work together to achieve a win-win outcome.”
5. “Taxi drivers and taxi companies share a symbiotic relationship in good times and bad times. The signing of the MOU marks an important milestone in this relationship as taxi companies have committed to building the social security net for taxi drivers. The CPF co-contribution by both taxi drivers and taxi companies under the DAS scheme demonstrates that building taxi drivers' social security net forms part of the cost of providing taxi services. With this scheme, we hope more taxi drivers, who are self-employed persons, will benefit from the Workfare Income Supplement, just like other Singaporeans," said NTUC Assistant Secretary-General, Seng Han Thong, who is also Advisor to the NTA.
6. All taxi companies in Singapore — Comfort, CityCab, TransCab, SMRT, Premier, Smart and Prime — have rendered their support to the scheme.  Said Mr Yang Ban Seng, CEO (Taxi), ComfortDelGro: “We want to encourage our drivers to save up for their future medical needs. We are putting aside $2.8 million a year to match their Medisave contributions.  This will be on top of the existing benefits that our drivers already enjoy."
7. Vice President of Taxis and Commercial Business, Teo Chew Hoon said, “At SMRT Taxis, we are happy to support the "Drive and Save Scheme". We are committed to taking good care of our drivers, and this includes their medical needs. We are looking forward to partnering the Central Provident Fund Board and Ministry of Manpower to encourage our drivers to participate in the programme.”
8. To drive home the important message of contributing regularly to their Medisave Account, the CPF Board also choreographed and put up a skit for over 300 taxi drivers who attended the MOU signing ceremony. In addition, they also visited the CPF Board’s booths to learn how they can save for their retirement and receive the Workfare Income Supplement. 

Annex A - MEMORANDUM OF UNDERSTANDING

This Memorandum is made on 22 July 2010 to express the commitments and roles of the undersigned parties who have come together to establish and implement the Drive & Save scheme (“the DAS scheme”) for the taxi industry.

OBJECTIVES

2.         The objectives of the DAS scheme are:

1. To inculcate a habit of regular Medisave contribution among taxi drivers in Singapore; and
2. To help taxi drivers build up their Central Provident Fund (CPF) Medisave savings.

THE DAS SCHEME

3.         Under the DAS scheme, taxi drivers who contribute to their Medisave Account will receive a co-contribution to their Medisave Account from their respective taxi companies.

SCOPE OF APPLICATION

4.         The DAS scheme is only applicable to the Principal driver or Hirer of the taxis leased from the taxi companies who are holding a valid Taxi Operators’ License issued by Land Transport Authority of Singapore.

IMPLEMENTATION

5.         The National Taxi Association (NTA) and the participating taxi companies will jointly work with the relevant government agencies to implement the scheme.  The DAS scheme will be supported by the Ministry of Manpower, Central Provident Fund Board, Ministry of Transport and the Land Transport Authority.  

COMMITMENTS

6.         To successfully implement the DAS scheme, the parties to this Memorandum must fulfill their respective commitments as follows:

• The National Taxi Association shall encourage and facilitate all applicable taxi drivers to participate in the DAS scheme;
• All participating Taxi Companies shall co-contribute the amount of $0.50 per day to the respective CPF Medisave accounts of their Principal drivers or Hirers, if the Principal driver or Hirer contributes at least $0.50 per day to their own Medisave Accounts.
• All participating Taxi Companies will make the DAS scheme available and encourage all their registered Principal drivers or Hirers to participate in it.  

DURATION OF SCHEME

7.         This Memorandum shall continue unless parties make changes to it by mutual agreement. 

8.         This Memorandum will be up for renewal and review three calendar years from the date of this agreement.
 

AMONG THE NATIONAL TAXI ASSOCIATION AND THE PARTICIPATING TAXI COMPANIES

Comfort Transportation Pte Ltd

CityCab Pte Ltd

Premier Taxis Pte Ltd

Prime Car Rental & Taxi Services Pte Ltd

Smart Automobile Pte Ltd

SMRT Corporation Ltd

Trans-Cab Services Pte Ltd

Annex B - WORKFARE INCOME SUPPLEMENT (WIS) SCHEME

1. What is WIS?

WIS is targeted at older low wage workers to encourage regular work and to build retirement savings. Workers get up to $2,800 a year if they work regularly and contribute CPF.

2. Who will qualify for WIS?

• Singapore citizens
• 35 years old and above in the work year
• Worked at least three months in any six-month period
• Average monthly income up to $1,700
• Housing Annual Value not exceeding $11,000. This covers most HDB flat owners.

3.  How to qualify?

• Taxi drivers are self-employed persons (SEPs). In order to get WIS for work done in the year, SEPs need to do the following:

1. Declare full-year income to IRAS if you receive the Income Tax Return form; for others, declare income to CPF Board (via any SingPost branch) by end May; and
2. Contribute to Medisave at any SingPost branch, AXS or by GIRO. SEPs who contribute their Medisave by 31 March of the following year will receive WIS in May that same year.

• SEPs who wish to receive an early WIS payment for work done in the first half of the year may do so by:

1. Declaring income earned in the first half of the year at any SingPost branch; and
2. Contributing to Medisave at any SingPost branch, AXS or by GIRO, from 1-31 July of the year.

SEPs who do the above will receive their half-year WIS payments two months later in September.

4. Drive and Save Scheme.  Taxi drivers who earn an annual income of $12,000 or less, and contribute at least $0.50 a day to their Medisave will get co-contribution of $0.50 a day from their taxi companies and also receive WIS.  Taxi drivers who earn an annual income of more than $12,000 will need to make additional Medisave payments to receive WIS. Refer to Table 1a of Annex for additional Medisave contribution amounts required.  

5. Benefits: Payout amounts depend on income and employment status. SEPs will receive WIS in their Medisave. Refer to Tables 1b and 1c of Annex for amount of WIS benefits. 

For more information on WIS: 

• Website: www.wis.sg
• Hotline 1800 222 6622 (Mon-Fri, 8am-6pm)
• Visit any CPF Service Centre

Table 1a: Additional Medisave Payments required from Taxi Drivers on DAS to Receive Full WIS Payment for Work Year 2010

Notes

1. The table assumes that the driver is under DAS i.e. makes $180 Medisave contributions and receives the co-contribution of $180 from his taxi company

2 The contribution amounts shown are additional Medisave payments required to be paid by the taxi driver to receive full WIS payments for the year. 

Table 1b: Self-Employed Medisave Contributions to Receive Full-Year WIS Payment for Work Year 2010

(Based on weighted average contribution rates for SEPs)

The amounts shown are inclusive of the Half-Year WIS payment in Sep 2010 for work done in the first half of 2010, as well as Medisave contributions made to qualify for the Half-Year WIS payment. You will receive the Full-Year WIS for work year 2010 only after you have paid up your Medisave contributions for your income earned in 2010.

WIS will be credited to your Medisave account.

Table 1c: Self-Employed Medisave Contributions to Receive Full-Year WIS Payment for the Whole Work Year

(Based on new contribution rates for SEPs. Contribution amounts are effective from work year 2011)

The amounts shown are inclusive of the Half-Year WIS payment, as well as Medisave contributions made to qualify for the Half-Year WIS payment in Sep of the work year. You will receive the Full-Year WIS for the work year only after you have paid up your Medisave contributions for your income earned in the work year. WIS will be credited to your Medisave account.