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Budget 2019: Enhanced Workfare scheme among support for low-income households

SINGAPORE – Low-wage workers will get higher maximum payouts by up to S$400 a year from next January through an enhanced Workfare Income Supplement (WIS) scheme.

Measures to help low-income groups include supplementing the income of low-wage workers by up to S$400 from next January and a top-up of S$10 million to the public transport fund to defray transport expenses for low-income households.

Measures to help low-income groups include supplementing the income of low-wage workers by up to S$400 from next January and a top-up of S$10 million to the public transport fund to defray transport expenses for low-income households.

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SINGAPORE — Low-wage workers will get higher maximum payouts by up to S$400 a year from next January through an enhanced Workfare Income Supplement (WIS) scheme.

This was among a slew of measures that Finance Minister Heng Swee Keat announced in his Budget speech on Monday (Feb 18) to provide more support to low-income groups and give children from underprivileged households a leg up.

The enhancement to the WIS will cost close to S$1 billion a year and benefit almost 440,000 Singaporeans, he said.

There will also be a top-up of S$10 million to the public transport fund to defray transport expenses for lower-income households, while a taskforce recently set up to help disadvantaged students will look at how to strengthen after-school care.

The Government will also provide a top-up of S$366 million and extend schemes that supports employers in hiring older Singaporean workers.

“Our aim is to help Singaporeans fulfil their potential at each stage of life,” said Mr Heng. “We are improving the lives of our people, by enabling them to be the best that they can be. We enhance our people’s sense of well-being and dignity, without the burden of welfare schemes elsewhere, which weaken people’s sense of agency and independence.”

Here is a breakdown of what each group is receiving:

FOR LOW-WAGE WORKERS

  • The WIS scheme, which helps those earning up to $2,000 a month, will be enhanced. This scheme supplements the income and retirement savings of eligible workers through cash payments and Central Provident Fund contributions.

  • The qualifying income cap will be raised from the current S$2,000 to S$2,300 per month to benefit more workers.

  • Maximum annual payouts will also be increased by up to S$400.

  • Older workers will receive the highest maximum payout of S$400. For instance, workers aged 60 and earning S$1,200 a month will receive S$4,000 per year, or about 30 per cent of their wages. This is up from the current maximum payout of S$3,600.

  • Those with disabilities under the age of 35 can also get an annual payout of up to S$1,700 if they earn a gross monthly income of not more than S$2,000. This is a S$200 increase from the current payout.

Maximum annual WIS payout for different age bands, for work done from Jan 1, 2020:

Source: Ministry of Finance

FOR OLDER WORKERS

To encourage companies to hire older workers and pay them a fair wage, the Government introduced the Special Employment Credit (SEC) scheme in 2011.

It later put in place the Additional SEC scheme to encourage employers to hire workers above the re-employment age. Currently, employers can get up to S$330 in maximum monthly payouts if they hire workers from the age of 55 to 67 and above.

How these will be enhanced:

  • The Government will extend the schemes for another year until Dec 31, 2020.

  • The Government will top up the SEC fund by S$366 million.

FOR STUDENTS IN LOW-INCOME HOUSEHOLDS

Recently, the Government set up an eight-member taskforce called Uplift — short for Uplifting Pupils in Life and Inspiring Families Taskforce to help children from lower-income households so that they can achieve their potential regardless of their backgrounds.

The Uplift taskforce will look at how to strengthen after-school care and support for children in lower-income households in student care centres.

The Education Ministry will provide more details during the upcoming Budget debate.

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