SINGAPORE - Workers who are deserving and in need will continue receiving Workfare Income Supplement payouts even if they do not meet the new minimum income criterion, said Senior Minister of State for Manpower Zaqy Mohamad on Monday (March 7).
The new criterion, announced during the Budget statement on Feb 18, applies to work done from Jan 1 next year. Workers will need to earn at least $500 a month to receive Workfare payouts, which top up their incomes and Central Provident Fund savings.
Mr Zaqy said during the debate on his ministry's budget that concessions are in place for groups like low-income workers who qualify for ComCare, and those who want to work more but cannot due to personal circumstances such as disabilities.
He was responding to concerns raised by some MPs during last week's debate on the Budget statement that the rule may exclude the workers who most need support.
Mr Zaqy said the aim is to nudge all workers towards gainful employment and a higher sense of achievement, and to better target the payouts at those who need it, and not casual workers doing vacation jobs, for example.
"Workfare is not the endgame for these workers earning less than $500 per month. We need to help these part-time workers find jobs of the appropriate quality and quantity of working hours to earn at least $500 or more if they can. And we have a whole suite of employment facilitation programmes and initiatives ready to assist," he said.
He also said that only 20,000 people would be affected by the new criterion next year, as wages are expected to grow due to the expansion of the Progressive Wage Model and new local qualifying salary requirement.
Workers' Party chief Pritam Singh (Aljunied GRC) had said 46,600 employed residents would be excluded, based on last year's data.
As to whether overtime pay can be excluded when assessing a worker's eligibility for Workfare, Mr Zaqy said that overtime pay, basic salary and bonuses all make up the total income that will help support a worker and his family.
"If we had only used basic salaries to determine who will qualify for Workfare, some workers with low basic salary but high overall pay may displace another worker with higher basic salary but overall, he does not get much more... So the worker displaced would have needed Workfare but does not get it," he said.
As the Government refines its schemes for low-wage workers, it has to take a calibrated and fair approach to ensure that equity is maintained, he added, responding to Nominated MP Abdul Samad Abdul Wahab.
Other changes to Workfare were also announced in the Budget. Payouts will be raised, younger workers aged 30 to 34 will be able to qualify, the income ceiling will be raised, and payouts for people with disabilities will be standardised.
