Workfare Income Supplement Scheme

Debated in Parliament on 14 Jan 2013.

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The Workfare Income Supplement (WIS) scheme, introduced in 2007, supplements wages and CPF savings for low-income workers, with a 1:2.5 cash-to-CPF ratio for employees and full CPF for the self-employed, and targets the bottom 20% of income earners while extending benefits up to the 30th percentile.
Enhancements since 2010 include increased payout quantum and income cap, with payment frequency doubled to four times a year by 2012, and a review is scheduled for 2013 to consider changes in income, inflation, and the balance between cash aid and retirement savings.
The government emphasizes a holistic approach to supporting low-income workers, noting that WIS is one of several schemes alongside ComCare and Medifund, and the review will focus on ensuring the scheme's effectiveness, fiscal sustainability, and targeting of those most in need.

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Laurence Lien

Mr Laurence Lien asked the Acting Minister for Manpower (a) for an update on the implementation of the Workfare Income Supplement Scheme, specifically, (i) the total number of recipients in each of the last five years; and (ii) the total disbursements, in cash and to the recipient's CPF accounts, in each of the last five years; and (b) what the considerations are for reviewing its adequacy.

Tan Chuan-Jin

The Workfare Income Supplement (WIS) scheme was introduced in 2007 to supplement the wages and CPF savings of low-income workers, as well as to encourage them to work regularly. Employees receive WIS in cash and in their CPF accounts in the ratio of 1:2.5. Self-employed persons receive WIS entirely in their CPF Medisave account. The number of WIS recipients and the total amount of WIS due to them for work done from 2007 to 201118 are in Tables 1 and 2 below:

Page: 175

WIS targets full-time income earners in the bottom 20% but benefits are extended (at reducing rates) to cover earners up to around the 30th percentile. In 2010, WIS was enhanced, with both its payout quantum and income cap increased. In 2012, the payment frequency to employees was increased from twice to four times a year. MOM will review WIS in 2013.

In reviewing WIS, we will take into account changes in income levels and inflation, bearing in mind that the level of assistance should be meaningful yet continue to encourage individual effort and responsibility. It is also important to continue striking an appropriate balance between giving recipients cash to help with their immediate needs and CPF to help with their retirement adequacy. WIS is a permanent social transfer mechanism. Ensuring it is structured to be effective while fiscally sustainable, and targeted at those who need it most are, therefore, also important considerations.

In helping low-income workers, a holistic approach is adopted. WIS is an important component but only one of several schemes aimed at helping the individuals and their families. ComCare and Medifund, for example, play critical roles in supporting this group of Singaporeans as well.

Page: 176

Summary written by AI (learn more)

The Workfare Income Supplement (WIS) scheme, introduced in 2007, supplements wages and CPF savings for low-income workers, with a 1:2.5 cash-to-CPF ratio for employees and full CPF for the self-employed, and targets the bottom 20% of income earners while extending benefits up to the 30th percentile.
Enhancements since 2010 include increased payout quantum and income cap, with payment frequency doubled to four times a year by 2012, and a review is scheduled for 2013 to consider changes in income, inflation, and the balance between cash aid and retirement savings.
The government emphasizes a holistic approach to supporting low-income workers, noting that WIS is one of several schemes alongside ComCare and Medifund, and the review will focus on ensuring the scheme's effectiveness, fiscal sustainability, and targeting of those most in need.

Questions identified by AI (learn more)

Workfare Income Supplement Scheme | PAPERCUTS

Workfare Income Supplement Scheme

Debated in Parliament on 14 Jan 2013.

Summary written by AI (learn more)

The Workfare Income Supplement (WIS) scheme, introduced in 2007, supplements wages and CPF savings for low-income workers, with a 1:2.5 cash-to-CPF ratio for employees and full CPF for the self-employed, and targets the bottom 20% of income earners while extending benefits up to the 30th percentile.
Enhancements since 2010 include increased payout quantum and income cap, with payment frequency doubled to four times a year by 2012, and a review is scheduled for 2013 to consider changes in income, inflation, and the balance between cash aid and retirement savings.
The government emphasizes a holistic approach to supporting low-income workers, noting that WIS is one of several schemes alongside ComCare and Medifund, and the review will focus on ensuring the scheme's effectiveness, fiscal sustainability, and targeting of those most in need.

Questions identified by AI (learn more)

Full Transcript

Laurence Lien

Tan Chuan-Jin

Page: 175

Page: 176

Summary written by AI (learn more)

The Workfare Income Supplement (WIS) scheme, introduced in 2007, supplements wages and CPF savings for low-income workers, with a 1:2.5 cash-to-CPF ratio for employees and full CPF for the self-employed, and targets the bottom 20% of income earners while extending benefits up to the 30th percentile.
Enhancements since 2010 include increased payout quantum and income cap, with payment frequency doubled to four times a year by 2012, and a review is scheduled for 2013 to consider changes in income, inflation, and the balance between cash aid and retirement savings.
The government emphasizes a holistic approach to supporting low-income workers, noting that WIS is one of several schemes alongside ComCare and Medifund, and the review will focus on ensuring the scheme's effectiveness, fiscal sustainability, and targeting of those most in need.

Questions identified by AI (learn more)

Workfare Income Supplement Scheme

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Questions Identified

Full Transcript

Laurence Lien

Tan Chuan-Jin

Summary

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Workfare Income Supplement Scheme

Summary

Questions Identified

Full Transcript

Laurence Lien

Tan Chuan-Jin

Summary

Questions Identified