Clause 5

Section 10C of the principal Act is amended by inserting, immediately after subsection (1A), the following subsections:“(1B) Notwithstanding subsection (1)(a), where on or after 1st January 1995 contributions are made by any employer in any month to the medisave account of an employee maintained under the Central Provident Fund Act [Cap. 36] in lieu of hospitalisation benefits which the employer is obliged to provide by reason of a contract of employment, such contributions up to 1% of his ordinary wages for that month or $60, whichever is the less, shall subject to subsection (1C) not be deemed to be income accruing to the employee.(1C) Where contributions referred to in subsection (1B) are made in respect of an employee by two or more employers in any month, the amount of such contributions not deemed to be income accruing to the employee shall not exceed 1% of his total ordinary wages from his employers for that month or $60, whichever is the less.”.