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Why restrict wage offset scheme for the disabled to those earning less than S$4,000 monthly?

During the Committee of Supply debate on Tuesday (March 3), Minister of State for Manpower Zaqy Mohamad gave details of a new scheme to encourage employers to hire disabled people.

Why restrict wage offset scheme for the disabled to those earning less than S$4,000 monthly?
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Jonathan Tiong Soon Yi

During the Committee of Supply debate on Tuesday (March 3), Minister of State for Manpower Zaqy Mohamad gave details of a new scheme to encourage employers to hire disabled people.

Called the Enabling Employment Credit, it offsets up to 20 per cent of a disabled employee’s monthly wage, capped at S$400 a month.

But the wage offset will only be available to employers who hire disabled employees earning less than S$4,000 a month.

This new scheme replaces two existing schemes which will expire on Dec 31 which also have a similar condition. According to Mr Zaqy, the new scheme will provide “stronger support” to employers and will cover four in five disabled employees now. 

I am concerned about the unintended consequences of imposing this condition, as it carries the implication that disabled people are limited to taking up lower-paid jobs.

In reality, more disabled people are obtaining degrees and striving for professionals, managers and executive roles.

SG Enable, the government-linked agency dedicated to helping people with disabilities, has done very well in matching inclusive employers with disabled jobseekers, and many disabled people are landing white-collar jobs in multinational corporations, banks, investment management firms, and large Singapore-based private sector companies.

Shouldn’t these employers be accorded the same benefits as those who hire disabled people for lower-paid positions? And shouldn’t all employers be incentivised to offer any type of job, regardless of salary level, to suitably qualified disabled candidates?

The danger of having this condition in place in the new wage offset scheme is that some employers may only consider hiring a disabled person to fill a lower-paid position but not a higher-paid one.

Or they may hire a disabled person for a position that, based on the prevailing market rate and the candidate’s profile, should be worth more than S$4,000 a month, but underpay the person so that they can meet the S$4,000 limit to claim the wage offset.

Surely this goes against the concept of fair, non-discriminatory recruitment practices.

True disability inclusion in employment means having disabled people present at all levels of the workforce. If an employee deserves a higher-paid job, they should be placed into it no matter if they are able-bodied or not.

This situation will require a long-term mindset shift on the part of employers. But in the short term, government initiatives like the Enabling Employment Credit can grease the wheels of change and encourage employers to make a start towards building a more inclusive society.

Hence, I urge the Ministry of Manpower to abolish the S$4,000 salary limit and allow all employers with disabled employees to enjoy the wage offset.

This is fairer to all, and will also help to improve the employment situation for the disabled by opening up more well-paying jobs for them, enabling them to achieve greater financial self-sufficiency and a higher standard of independent living.

Have views on this issue or a news topic you care about? Send your letter to voices [at] mediacorp.com.sg with your full name, address and phone number.

Related topics

disability SG Enable Enabling Employment Credit manpower work MOM

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