National Taxi Association Implements "Drive and Save" Scheme for Taxi Drivers

The National Taxi Association (NTA) announced today that the tripartite initiative known as the “Drive And Save” (DAS) scheme was successfully implemented from 1 January 2011.

On 22 July 2010, NTA and seven taxi companies— CityCab, Comfort, Premier, Prime, Smart, SMRT and Trans-Cab—had signed a Memorandum of Understanding (MOU) to establish the DAS scheme for the taxi industry. This marked a significant milestone for the industry as taxi companies recognise that contribution to drivers‟ social safety net is a corporate responsibility and forms part of their operating costs. The DAS scheme represents a breakthrough for the industry as taxi companies play their part in helping drivers save for their medical needs.

The DAS scheme was the first initiative mooted by NTA since its inauguration on 26 June 2010 to garner greater benefits for taxi drivers and to enhance their social safety net. This is the first time such scheme has been implemented for the self-employed at the industry level. All taxi companies have shown their strong support since the signing of the MOU and have worked together with NTA to launch the scheme as scheduled.

The DAS Scheme aims to raise the healthcare savings of taxi drivers. For as little as $0.50 per day, a principal hirer can enjoy a co-contribution of another $0.50 a day from the taxi company into his or her Medisave Account (MA). This is equivalent to contributing $15 a month to receive $15 in co-contributions from the taxi company. This could add up to around $360 in Medisave contributions for each principal hirer per year. Eligible members can even receive up to around $1,800 of Workfare Income Supplement (WIS). The Medisave co-contributions made by the taxi companies, as well as WIS, will incentivise drivers to contribute regularly to their MA and save for their future healthcare needs. The scheme will go a long way in strengthening the social safety net of taxi drivers, a significant group of self-employed persons in Singapore.

Principal hirers who make the necessary Medisave contributions to the CPF Board regularly will benefit from the DAS Scheme and receive their companies‟ Medisave co-contributions. About 70% of registered principal hirers made Medisave contributions in 2010 that would have been sufficient to attract co-contributions. Going forward, we hope that the DAS Scheme will encourage many more to do so to enjoy the co-contribution. Saving for one‟s healthcare needs is a personal responsibility. The DAS Scheme will help taxi drivers inculcate a habit of regular Medisave contribution. NTA and its tripartite partners urge all drivers to contribute regularly to their Medisave so as to benefit from the scheme.

A DAS Working Committee, comprising NTA, the seven taxi companies and representatives from the Ministry of Manpower (MOM), Central Provident Fund (CPF) Board and Land Transport Authority (LTA), was set up in July to implement the DAS scheme on 1 January 2011. The committee has been reaching out to the drivers through roadshows and brochures to educate them on the benefits of the scheme.

NTUC Assistant Secretary-General Seng Han Thong, Chairman for the DAS Working Committee said: “The DAS scheme is a tripartite effort that enhances the social safety net of principal hirer taxi drivers, who are an important group of self-employed persons. Medisave is one of the key benefits that all working Singaporeans enjoy. Taxi drivers are no different from other Singaporeans and should enjoy Medisave contributions as well. After several years of lobbying by the various taxi associations, we are heartened that our taxi drivers can also enjoy Medisave contributions from the company from which they hire their taxi.”

The scheme is expected to benefit 25,000 principal hirers, and the seven taxi companies will collectively co-contribute more than $4 million a year to drivers‟ Medisave accounts.