Additional Workfare Income Supplement Cash Support to Cushion Inflation

Mr Gan Thiam Poh asked the Minister for Manpower whether the Ministry can provide additional Workfare Income Supplement in cash to support the beneficiary to better cushion the impact of inflation.

The Workfare Income Supplement Scheme encourages lower-income Singaporeans to work and build up their CPF savings, by supplementing their income through cash payments and CPF contributions if they have a job and are working.

The Government reviews Workfare regularly. As announced at Budget 2022, Workfare will be enhanced from 2023 and the maximum annual Workfare payout will be raised for all age bands. For example, eligible lower-wage workers aged 35 to 44 currently receive up to $1,700 in Workfare payouts per year, of which up to $680 will be provided in cash. From 2023, they can receive up to $3,000 in Workfare payouts per year, of which up to $1,200 will be provided in cash. This will provide a significant boost for lower-income workers.

As we enhance Workfare, we are also taking significant steps to raise the wages of lower-income workers. In the past five years (2016 to 2021), real1 income2 growth at the 20th percentile of full-time employed residents was 2.7% per annum, higher than the median income growth of 2.1% per annum. We are in the midst of expanding Progressive Wages to new sectors and occupations, and have also implemented the new Local Qualifying Salary requirement. These efforts will cover up to nine in 10 full-time lower-income workers by 2023. The National Wages Council will also continue to recommend wage increases for lower-income workers annually.

The Government also supports Singaporeans with other measures, especially for the lower-income groups. In particular, the $1.5 billion support package, announced by MOF in June 2022, has provided immediate and quick relief, with more support for lower-income and vulnerable groups.

The Government will continue to monitor the situation and will provide additional targeted help for lower-income and vulnerable groups if the situation worsens.