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Continue reviewing WIS so that it remains relevant

Employment practices
  • Berita Harian (19 Mar 2011) : Continue reviewing WIS so that it remains relevant
  • Berita Harian (12 Mar 2011) : Increase cash payout under Workfare Scheme

Continue reviewing WIS so that it remains relevant
- Berita Harian, 19 March 2011

We refer to the letter by Mdm Salmah Hamid “Bigger cash payouts for Workfare Scheme” (BH, 12 March 2011).

2.   The Workfare Income Supplement (WIS) scheme aims to supplement the income and CPF savings of older low-wage workers while encouraging them to work. Building up CPF savings is important as older low-wage workers may have difficulty saving up adequately for their old age. This explains why a portion of the WIS payment is paid into the worker’s CPF.

3.   In 2010, the Ministry of Manpower (MOM) enhanced the WIS scheme and increased the amount of cash paid to each WIS recipient. With the increase in WIS payment quantum, a worker aged 60 with an income of $1,000 will receive $800 in cash, or 17% more than what he would have received before the enhancements.

4.   Furthermore, the Minister for Finance also announced earlier that a Workfare Special Bonus (WSB) will be given to workers who qualify for the Workfare Income Supplement (WIS) scheme for work done in 2010, 2011 and 2012. The WSB will amount to an additional one year’s worth of WIS payments. Employees can receive their entire WSB of up to $2,800 in cash. Those who are self-employed will be paid half their WSB in cash, while the other half will be paid into their Medisave to build up their healthcare savings.

5.   The WSB payments are also timed to be paid in between the half-yearly WIS payments in September and March, to give recipients more frequent payouts.

6.   The WIS enhancements together with the WSB payments will go a long way to help older low-wage workers benefit from Workfare. We thank the writer for her suggestion. MOM will continue to monitor the WIS Scheme to ensure that it stays relevant and effective in helping low-wage workers. For more information, you can visit www.workfare.sg or call the Workfare hotline at 1800-222-6622 (Mondays – Fridays: 8am – 6pm).


Increase cash payout under Workfare Scheme
- Berita Harian, 12 March 2011

Many low-income workers have recently received payouts under the Workfare Scheme. However, some of them are unhappy because more than 60 per cent of the payouts are credited into their Central Provident Fund (CPF) accounts.

How can the assistance benefit the low-income workers if most of the payouts are credited into their CPF accounts and cannot be used now?

In my opinion, this will not help the low-income workers because the CPF money cannot be withdrawn or used now, especially by workers who are below 55 years old. In fact, even for those who are above 55 years, not all of the money credited into their CPF accounts can be used. For example, a friend of mine received only $95 in cash whereas almost $200 had been credited into his CPF account. If we think carefully, what can we spend on with this $95? Even the monthly utilities bill alone is more than $200.

If all the payouts are in cash, the workers can use it to pay their utilities bill or some of their family necessary expenses. In my opinion, this is much better and will benefit low-income older workers. I hope the Government will review how the payout is disbursed and will not promise an incentive which is in fact not really helpful.