Written Answer by Mr Tan Chuan-Jin, Acting Minister for Manpower & Senior Minister of State, National Development, to Parliamentary Question on Workfare Income Supplement Scheme

Mr Laurence Lien: To ask 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.

Mr Tan Chuan-Jin:

1. 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 2011¹ are in Tables 1 and 2 below:
   
   Table 1: Number of WIS recipients who are employees and amount of WIS due to them for work done in 2007 – 2011 (as at 11 December 2012)

   Work Year	Number of WIS recipients who are employees	Amount of WIS ($)
   2007	254,656	265 mil
   2008	263,138	286 mil
   2009	263,260	288 mil
   2010	325,355	367 mil
   2011	317,171	371 mil

   
   Table 2: Number of WIS recipients who are self-employed and amount of WIS due to them for work done in 2007 – 2011 (as at 11 December 2012)

   Work Year	Number of WIS recipients who are self-employed	Amount of WIS ($)
   2007	69,695	48 mil
   2008	66,183	48 mil
   2009	62,479	46 mil
   2010	71,180	58 mil
   2011*	51,983	44 mil

   * For WY2011, another 24,000 self-employed persons will receive WIS once they contribute to their Medisave by 31 December 2013. In other words, the total amount paid out for work done in 2011 will increase further.
2. 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.
3. 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.
4. 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.

¹ Figures for 2012 are not yet available.