Eligibility Criteria of Families Applying for Social Support Grants Affected by Local Qualifying Salary

Dr Shahira Abdullah asked the Minister for Social and Family Development whether the Local Qualifying Salary will affect the eligibility criteria of families that are applying for social support grants and, if so, how will it affect them.

The Government uplifts our lower-wage workers through a multi-pronged approach. Workfare boosts income and retirement savings, and encourages skills upgrading. Progressive Wages provides job and training progression pathways for lower-wage workers, and grows their wages as they improve their skills and productivity.

From 1 September 2022, firms that hire foreign workers will have to pay all their Singaporean employees at least the Local Qualifying Salary (LQS). This is part of the recent recommendations by the Tripartite Workgroup on Lower-Wage Workers that the Government has accepted, which includes expanding the coverage of Progressive Wages, and introducing the Progressive Wage Mark. The Government has also committed to enhancing the Workfare Income Supplement scheme by 2023. Households with lower-wage workers can therefore expect to see an increase in their household income over the next two years.

The Government provides multiple layers of assistance to support lower-income individuals and their families. The eligibility criteria, including income thresholds, vary for different schemes as they serve different purposes and channel support towards different target groups. These eligibility criteria are reviewed from time to time to ensure that the schemes continue to meet their intended objectives. The new LQS requirements have no bearing on the eligibility criteria of social support schemes or how individuals and families are assessed for such schemes.

Our social support grants, such as ComCare assistance, are intended to tide families through temporary periods of need, as they work towards improving their circumstances. With the expanded Progressive Wage approach, including the new LQS requirements, we expect more families to see an improvement in their financial circumstances and achieve self-reliance in the long run.