Current Wage for Singaporeans to Acquire a Decent Living for Themselves

Mr Abdul Samad asked the Minister for Social and Family Development whether there will be efforts to study the current wage for Singaporeans to acquire a decent living for themselves and for also raising a family.

The Government is committed to creating an uplifting society, where all Singaporeans have opportunities to do well for themselves and their families. To this end, we have progressively strengthened our social safety nets and have increased support for Singaporeans in key domains of need over the years.

We recognise that the income required to support individuals and their families varies depending on their needs and circumstances, and that we can help them with their aspirations. Therefore, our approach is one where the Government provides multiple lines of assistance and extends support to individuals and families in a targeted and holistic manner. These range from broad-based and right-sizing of subsidies in housing, healthcare, and education, to more targeted forms of support like ComCare financial assistance for those who require additional support for their basic living expenses. MSF regularly reviews the ComCare eligibility criteria and guidelines for assistance quantum based on national statistical data by the Department of Statistics (DOS), and input from relevant stakeholders and beneficiaries. The amount of Government transfers has also increased over the past year, with resident households in HDB 1-2 room flats receiving the highest amount at $13,670 per household member on average last year.

Ultimately, we agree with our union leaders that the best welfare is work. In addition to being gainfully employed, we are also taking active steps to enable our lower-wage workers to attain higher wages. The Progressive Wage Model (PWM) and Workfare Income Supplement (WIS) scheme are key strategies that will help us to achieve this. The PWM will be extended to more sectors and occupations starting next year, to put them on a wage growth trajectory that outpaces that of the median worker in the years ahead. As PM had announced at his National Day Rally speech, Workfare will also be enhanced from 2023 to provide higher payouts to all recipients, and to support younger lower-wage workers from age 30.

In addition, from 1 September 2022, firms that hire foreign workers will have to pay all their Singaporean employees at least the Local Qualifying Salary (LQS) of $1,400. Together with Workfare, this means that employees who benefit from the LQS will receive an income of at least $1,540 to $1,730 per month, depending on their age.

We have also put in place a comprehensive Marriage and Parenthood Package to support families. Married parents of citizen children receive financial support through the Baby Bonus Cash Gift and Government contributions to the Child Development Account (CDA). This year, we increased the cap on the Government’s dollar-for-dollar co-matching of parents’ savings in the CDA for the second child from $3,000 to $6,000. In 2016, we introduced the CDA First Step Grant, which is a $3,000 deposit by the Government when the CDA is opened without parents having to save first. It is especially beneficial to lower-income families. Other benefits given to all citizen children, regardless of their parents’ marital status, include healthcare subsidies, MediSave Grant for Newborns, MediShield Life coverage from birth, and the Migrant Domestic Worker Levy Concession.

The Government is also committed to ensuring that every family has access to affordable and quality preschool. We ensure that fees at government-supported preschools are kept affordable, and have enhanced preschool subsidies in January 2020. With enhanced subsidies, low-income families earning $3,000 or less per month pay $3 a month for full-day childcare at an Anchor Operator preschool. This is because we want to give every child the best start in life, regardless of their family background or circumstance. Providing them with an enabling environment, where they can flourish and achieve their fullest potential.

In sum, the Government will continue to support Singaporeans in employment, and in starting and raising their families, whether through measures that provide direct financial support, or more targeted measures in key aspects such as preschool, education, healthcare, and housing. Everyone has a part to play in this effort, from employers enabling efforts to uplift the wages of lower wage workers, to the community looking out for each other. If you come across individuals or families who require support, please reach out to us at our ComCare hotline at 1800-222-000, or approach the nearest SSO, so that we can follow up and offer the appropriate support.