SINGAPORE — Workers who have become "involuntarily" jobless could get an "immediate boost" of up to S$1,500 in the first month of their job hunt under a new government support scheme which starts next April.

In total, these workers may receive up to S$6,000 over six months — with support tapering down each month — if they meet the new SkillsFuture Jobseeker Support scheme's eligibility criteria.

This includes a previous income of S$5,000 a month or less on average. Workers must also actively look for a new job, such as sending applications or taking up training courses during this period.

An estimated 60,000 Singapore residents will be eligible for the scheme per year, accounting for over 60 per cent of involuntarily unemployed persons, the Ministry of Manpower (MOM) said on Tuesday (Aug 27).

First announced by Prime Minister Lawrence Wong at his inaugural National Day Rally, the scheme marks a "paradigm shift" in the Government’s approach to unemployment, MOM added.

Minister for Manpower Tan See Leng provided further details of the new scheme, which is targeted at lower and middle-income individuals.

Speaking to attendees at National Trades Union Congress (NTUC)'s Employment and Employability Institute (e2i)'s coaching series on Tuesday, Dr Tan said this will be the first time the authorities are giving temporary financial support to displaced jobseekers.

The scheme aims to strike a "careful and delicate balance" of ensuring workers do not delay their return to the workforce, which diminishes their employability, while relieving the pressure of accepting a potentially ill-fitting job.

"Our starting point is to support displaced jobseekers to rebound into jobs that fit their skills and experience, instead of just rushing head on into the next available job," Dr Tan added. 

This "first step" to strengthening support for jobseekers will cost the Government over S$200 million per year, said Dr Tan, and the scheme will be regularly reviewed.

"By providing jobseekers with financial assistance, complemented by training and employment facilitation support, we will strengthen our workers’ career health and longer-term prospects," he added.

WHY IT MATTERS

The new scheme is a response to the “accelerating” pace of economic transformation where workers may be displaced, despite their efforts to reskill for new jobs, said MOM.

"The pace of change will only accelerate. We are likely to see a higher incidence of job displacements, because these are due to factors beyond any of our control, because the world has seen rapid disruptions," said Dr Tan.

The scheme is based on feedback collected during the Forward Singapore exercise and the recommendations for the joint taskforce led by NTUC and the Singapore National Employers Federation for professional, managerial and executive (PME) workers. 

MOM also examined similar schemes implemented in other countries.

"Some countries have unemployment insurance. The point I want to drive across, in our study across many of these countries, the experience has not been consistently positive. We have seen in some of these countries, unemployment insurance can allow and lead individuals to stay unemployed for even longer periods," said Dr Tan. 

He added that employers here have concerns over rising business costs, and the aim is not for employers to offset the cost of an insurance scheme by cutting wages or stopping the practice of retrenchment benefits.

The temporary financial support is aimed at supporting those workers who lose their jobs to “bounce back” and complements the suite of existing employment facilitation and training support measures. 

For example, jobseekers can tap in-person career coaching services by Workforce Singapore and NTUC’s e2i. 

The ministry stressed that the temporary financial support is not "social assistance", and the payout quantum is “not sized” to meet the needs of households facing financial distress as a result of a household member losing their job. 

“For these households, they can receive support from other social assistance schemes, such as ComCare Short-to-Medium-Term assistance and the GST voucher scheme,” said MOM.

WHO IS ELIGIBLE? 

To qualify to receive payouts under the SkillsFuture Jobseeker Support scheme, one must fulfil the following criteria: 

SINGAPORE RESIDENTS 

• Be a Singapore citizen aged 21 and above (from April 2025),
• or a Singapore permanent resident aged 21 and above (from the first quarter of 2026)

LAST DRAWN SALARY AND ANNUAL PROPERTY VALUE

• Earned an average of S$5,000 or less per month in the last 12 months, excluding employer Central Provident Fund (CPF) contributions. This only includes the period(s) where the worker was employed and earned an income
• Reside in a property with an annual value of S$25,000 or less 

UNEMPLOYMENT STATUS

• Became unemployed due to involuntary reasons such as retrenchment, cessation of business, dismissals or termination due to illness, injury or accident
• Prior to applying for the scheme, must have been previously employed for at least six months in the past 12 months
• Have been unemployed for at least one month from the last day of employment prior to receiving payout 

ACTIVELY JOB SEARCHING 

• Engage in job search and related activities that will help secure employment
• Some examples include submitting job applications, attending career coaching, career preparatory workshops or eligible training courses 
• More details on the job search conditions will be shared closer to April 2025

PRIOR PARTICIPATION 

• Has not received a jobseeker support payout in the past three years

HOW WILL THE SCHEME WORK?

Eligible involuntarily unemployed persons can apply to receive up to S$6,000 under the scheme over six months. More details on the application process will be released at a later date.

The payouts will be tiered, with the highest amount of S$1,500 given in the first month. This amount tapers down in subsequent months.

For example, a worker could receive S$1,250 in the second month, S$1,000 in the third month, and S$750 in the last three months.

Monthly payouts are capped at the individual’s average monthly income prior to losing their job. 

Thus, if an individual was previously earning S$1,200, they will receive S$1,200 in the first and second months.

Payouts will also stop once an applicant has successfully secured a new job. If a worker finds a new job in the third month, they will not receive the subsequent payouts.

Those who have been involuntarily unemployed for more than six months in the past 12 months would ordinarily not be eligible, as the scheme is meant to encourage workers to "take immediate actions" to re-enter the workforce, said MOM.

However, when the scheme is launched next April, MOM will provide a one-off concession for Singaporeans who became involuntarily unemployed on or after April 1, 2024 and remain so.

Jobseekers who undergo reskilling or upskilling in eligible full-time, long form training programmes also stand to receive additional payouts.

These would come under the SkillsFuture Level-up Programme and various company attachments in Workforce Singapore’s Mid-Career Pathways Programme. 

For example, a Singaporean worker over the age of 40 who enrolls in full-time reskilling may be eligible to receive a SkillsFuture Mid-Career Training allowance on top of the new jobseeker support scheme.

If he was previously earning an average of S$2,500 a month for the past 12 months, he would receive a further S$1,250 per month in training allowance. 

This would amount to a total of S$13,500 over a six-month period, consisting of S$7,500 of training allowance and S$6,000 from the jobseeker support scheme.