Workfare Income Supplement could be refined further

[SingaporeJobsMarket.com]

SINGAPORE: There is scope to refine and enhance the Workfare Income Supplement (WIS), said NTUC Secretary-General Lim Swee Say.

But the bigger challenge, he added, is to continue educating workers and employers so that more workers will become CPF members and benefit from WIS.

The WIS is one of the most important policy initiatives that Singapore has introduced for workers in recent years because it gives an opportunity for low-wage workers to come onboard the CPF social safety net and benefit from it.

Under the WIS, older workers earning S$1,500 or less a month receive top-ups from the government. For example, the highest Workfare payout is S$1,200 a year for those aged over 45 and earning less than S$1,000 a month. But these Singaporeans need to have CPF accounts to receive the top-ups.

Acting Manpower Minister Gan Kim Yong said: "If Singaporeans are willing to work, we try to help them supplement their income through the WIS scheme if their wages are low. By doing so, we will be able to preserve the desire and motivation to work so that it will not degenerate into a government handout or welfare scheme."

Not all self-employed and those in the informal workers sector see the principle behind the scheme.

Mr Lim said: "We have workers who choose not to go for the Workfare Income Supplement because they need the dollar today, and they do not want to save the dollar in the CPF system.

"How do we reach out to them to say it is important not only to enhance their take-home pay today, but it is also important for them to think about the future?"

There is one group of workers who want to be part of the scheme but are victims of irresponsible practices like 'cheap sourcing'. This is when tender contracts are awarded to the lowest bidders, who in turn keep the wages of their workers low.

The Unit for Casual and Contract Workers in NTUC tries to help such workers negotiate with their employers so that they, too, can become CPF members.

Besides the government, unions and employers – the tripartite partners – the Community Development Councils and various grassroots organisations from the People's Association are also pitching in to reach out to the low-income residents to get them to sign up for Medisave so that they can take advantage of the Workfare Income Supplement.

With the first WIS payment in January this year, more than 262,000 employees have received some S$272 million for having worked last year.

Source: Channelnewsasia.com