Clause 14

by deleting “2%” in subsections (5) and (6) and substituting in each case the words “the specified percentage”;

by inserting, immediately after subsection (6), the following subsections:“(6A) For the purpose of subsections (5) and (6), the specified percentage for any year of assessment shall be —

2% in the case of an employer who has —

contributed the specified amount into the medisave accounts maintained under the Central Provident Fund of —

at least 20% of the number of local employees who are employed by him as at the first day of the basis period for that year of assessment, for every calendar month in that basis period they are employed by the employer; and

every local employee who commences his employment with him during the basis period for that year of assessment, for the calendar month he commences his employment and every subsequent calendar month in that basis period he is employed by the employer; or

incurred expenses in or in connection with the provision of a specified insurance plan to cover, for every calendar month in the basis period for that year of assessment, the cost of medical treatment of at least 50% of the number of local employees who are employed by him as at the first day of that basis period; and

1% in any other case.(6B) Subsection (6A) shall apply to the year of assessment relating to the basis period which commenced on or after 1st April 2004 and any subsequent year of assessment.”;

by inserting, immediately before the definition of “medical expenses” in subsection (8), the following definitions:“ “gross rate of pay” has the same meaning as in section 2 of the Employment Act (Cap. 91);“local employee” means a full-time or part-time employee who is a citizen or permanent resident of Singapore;”;

by inserting, immediately after the definition of “medical treatment” in subsection (8), the following definition:“ “part-time employee” has the same meaning as in section 66A of the Employment Act;”; and

by deleting the full-stop at the end of the definition of “remuneration” in subsection (8) and substituting a semi-colon, and by inserting immediately thereafter the following definitions:“ “specified amount”, in relation to any calendar month, means —

in the case of a full-time employee who falls under subsection (6A)(a)(i), an amount equal to at least 1% of the employee’s gross rate of pay for the calendar month, subject to a minimum contribution of $16 per calendar month;

in the case of a part-time employee who falls under subsection (6A)(a)(i), an amount equal to at least 1% of the employee’s gross rate of pay for the calendar month;“specified insurance plan” means a medical insurance plan sponsored by an employer that —

confers hospitalisation benefits during the period of employment of an employee and up to a period of 12 months immediately after the employee leaves his employment for any reason; and

treats the employee as being continuously insured when he is employed by another employer who provides him with an insurance plan that confers the hospitalisation benefits described in paragraph (a).”.