Written Answer to PQ on Contract work and business cycles on income security and home ownership
NOTICE PAPER NO. 2869 OF 2024 FOR THE SITTING ON 2 JULY 2024
QUESTION NO. 5886 FOR WRITTEN ANSWER
MP: Mr Saktiandi Supaat
To ask the Minister for Manpower whether the recent trend of increased contract work compared to permanent jobs and shorter business cycles will impact income security and longstanding Government policies such as compulsory savings and pension plan for working Singaporeans under CPF and HDB home ownership schemes.
Answer:
1.The proportion of resident employees in contract work has not increased. In fact, it has declined for the third consecutive year to a low of 6.6% in 2023, as more residents took up permanent jobs amid a tight labour market.
2.For contract employees who require more support to find another job, the Government provides support through our employment facilitation and reskilling programmes. These workers may approach Workforce Singapore (WSG) and NTUC’s Employment and Employability Institute for career matching services. WSG’s Career Conversion Programmes also provide generous salary support to employers who hire and reskill jobseekers for new roles.
3.In terms of retirement adequacy, every successive cohort, which includes contract workers, has seen a higher proportion of CPF members setting aside their Basic Retirement Sum (BRS) at age 55. Singaporeans can be assured that they will be able to meet their basic retirement needs as long as they work and contribute consistently to CPF. For those who have less in retirement, we will continue to provide targeted support.
4.Contract workers receive the same treatment as workers in permanent jobs in terms of their access to housing grants, HDB housing loans, and usage of CPF for housing. The Government remains committed to help Singaporeans from all walks of life own a home.