A10 TOPOF THENEWS | THE STRAITS TIMES | WEDNESDAY, MARCH 6, 2019 | Debate on ministries’ budgets MORE EFFECTIVE HELP S’pore way of Our approach of providing multi-layered support is more responsive to the varied needs helping better of individuals than any single serves needs minimum or living wage. ’’MINISTER OF STATE FOR MANPOWER ZAQY MOHAMAD of low-wage Broad range of support for workers workers About 830,000 Annual Real gross monthly Employment For Singaporean households at the 20th Singaporeans have government incomes of workers at rate for percentile, real incomes grew by about beneted from spending on the 20th percentile residents rose 40% cumulatively. In comparison, key $5.5 billion in Workfare will kept pace with the from 76.5% in Organisation for Economic Cooperation and Workfare payouts in grow to almost median income over 2007 to 80.7% Development countries3 experienced low or the last decade1. $1 billion in 2020. the past decade2. in 2017. negative income growth. Giving layers of support meets varied needs better than minimum or living wage: Zaqy HOLISTIC SUPPORT FOR WORKFARE RECIPIENTS receive Utilities-Save receive medical and dental of Workfare OVER 90% (U-Save) rebates and 4 IN 10 subsidies under the Community 75% recipients own Joanna Seow (WIS) scheme, which is being en- GST vouchers. Health Assist Scheme. their homes. Manpower Correspondent hanced to help more workers. Finance Minister Heng Swee Keat said in his Budget speech last The Singapore approach – provid- month that the qualifying income CASE 2: ing multiple layers of support for cap for WIS will be raised from the CASE 1: low-wage workers and their fami- current $2,000 to $2,300 per Madam Goh Geok Mr Gunasegaran s/o lies – meets the varied needs of in- month from January next year. The Kee (Auntie Sellayya (Mr Guna), dividuals better than a minimum maximum annual payouts will also Geok), 64, her 49, his wife, three or living wage, Minister of State be increased by up to $400. husband and young children and for Manpower Zaqy Mohamad These enhancements will lead to his elderly mother said yesterday. almost $1 billion being paid out to 24-year-old son The cost of a key plank of such sup- close to 440,000 WIS recipients Auntie Geok lives Mr Guna works as a supervisor, port – Workfare – is borne fully by next year, including some self-em- with her husband managing eight other cleaners. the Government, and incomes have ployed people, Mr Zaqy noted. The and 24-year-old He and his wife live in a 3-room grown, particularly those of low- Government will continue to re- undergraduate son at with their three young in a 3-room at. children. Mr Guna also has an wage workers, he told Parliament. view the scheme regularly, he said. elderly mother. Between 2012 and 2017, real Older workers will continue to wages of workers at the 20th per- get higher payouts, as they have • Under the Progressive • Mr Guna receives Workfare centile grew by 24 per cent in total, less runway to upgrade their skills Wage Model, Auntie monthly to top up his salary and $1,700 faster than incomes at the median, and save for retirement compared Geok’s salary has $4,000 build up his retirement savings. KiFAS received by son which grew by 21 per cent. This is with younger workers, he said, re- increased cumulatively CDC/CCC Bursary* by 60% since 2012. received by son • Mr Guna’s two daughters in for Singaporeans in full-time work, plying to labour MP Zainal Sapari primary school are on the Ministry $396++ *Administered by the MOE FAS received by including employer contributions (Pasir Ris-Punggol GRC) on remov- • Both Auntie Geok and her Community Development of Education Financial Assistance to the Central Provident Fund, and ing the age differentiation. husband receive Workfare Councils (CDCs) and the (MOE FAS) Scheme. The scheme two daughters before government transfers. Mr Zaqy also said that from 2007 to in their jobs, which helps Citizens Consultative waives the standard miscellaneous (Standard misc. fee waiver Committees (CCCs). and public transport Low-income Singaporean house- 2017, 830,000 Singaporeans received with household expenses. fees, covers the costs of textbooks allowance + school attire + holds also saw household income $5.5 billion in Workfare payouts. From 2020, Workfare and school attire, and provides textbooks) grow by about 26 per cent in real The cost of this wage top-up is enhancements will give Up to $480 them with $120 of public transport credits per year. Up to $300 terms over those years, higher than not passed on to employers or con- Auntie Geok 25% more Chas Blue allowance. (Total of $333 subsidies for Chas Orange subsidies the 24 per cent for households at sumers, he said, adding that there per month, $200 into CPF chronic conditions • Mr Guna’s son receives for chronic conditions the median, said Mr Zaqy. are also other forms of government and $133 as cash) Kindergarten Financial Assistance Scheme (KiFAS) subsidies. With KiFAS, $360 At the same time, the employ- support, such as Utilities-Save re- $360 U-Save rebates ment rate for Singaporeans and per- bates and medical subsidies under • Auntie Geok, her husband, U-Save Rebates Mr Guna enjoys 99% of monthly and her son each have the kindergarten fee assistance, paying manent residents aged 25 to 64 re- the Community Health Assist $300 Chas Blue card. They receive $300 only $1 per month. mained high, at about 80 per cent. Scheme, to help low-income work- GST voucher-cash highly subsidised medical GST voucher-Cash Speaking on efforts to tackle in- ers meet their living needs. and dental services at Chas • Mr Guna’s retired mother has a Chas equality and ensure social mobility, “Our approach of providing clinics. Orange card and receives subsidised $2,500 Mr Zaqy said the Government must multi-layered support is more re- $4,000 care at Chas clinics. Workfare payouts stay focused on three strategies to sponsive to the varied needs of indi- • Auntie Geok’s household Workfare payouts after enhancements expenses are helped by after enhancements • Mr Guna’s household expenses continue getting such outcomes. viduals than any single minimum or are also helped by GST vouchers First, maintain a thriving econ- living wage,” he said. GST vouchers and U-Save Total: Total: rebates. and U-Save rebates. omy with a tight labour market, and There have also been efforts to About $9,000 About $5,500 create better jobs. raise the skills and productivity of Second, strive for quality growth low-wage workers. Since the Pro- NOTE: [1] Between 2007 and 2017. [2] Incomes of full-time employed citizens (before government transfers) at both the 20th percentile and median grew at about 30% cumulatively. [3] Real household income growth at the 20th percentile (cumulative): Finland (16% from 2003 to 2013), UK (3% from 2003 to 2013), US (-8% from 2003 to 2013), Hong Kong (-2% based on productivity improve- gressive Wage Model (PWM) was from 2001 to 2011). Source: MOF Occasional Paper “Income Growth, Inequality and Mobility Trends in Singapore”, August 2015. ments that all Singaporeans can implemented to set out career path- Source: MINISTRY OF MANPOWER STRAITS TIMES GRAPHIC benefit from. ways and minimum pay for various Third, support lower-income skill levels in the security, land- workers in general and in specific scape and cleaning sectors, work- scape maintenance workers and worker, not including employer compulsory requirement in the lift Voluntary PWMs have been set up sectors to ensure they can progress ers there have seen positive real cleaners had real wage increases of CPF contributions. Over 70,000 maintenance sector next. The Min- in the public transport and health- with the rest of the workforce. wage growth, said Mr Zaqy. 23 per cent, 36 per cent and 44 per resident workers have benefited istry of Manpower will also explore care sectors. One key support measure is the Between 2012 and 2017, resident cent, respectively, compared with from the PWM so far, said Mr Zaqy. facilitating the use of the model on Workfare Income Supplement full-time security guards, land- 21 per cent for the median resident The model is being extended as a a voluntary basis in other sectors. [email protected] Needy Singaporeans to get more in monthly aid Groups to run social service hubs near rental blocks Theresa Tan Senior Social Affairs Correspondent ComCare Long-Term To provide a more coordinated who asked for more details about Assistance scheme and comprehensive support for ComLink. poor and vulnerable families with In response to Dr Neo’s ques- Needy Singaporeans will get more Household Current New rates multiple woes, the Ministry of So- tion on ComLink’s outreach ef- financial aid each month from type rates (from July 1) cial and Family Development forts, Mr Lee said that they will the Government. (MSF) is looking to bring together proactively reach out to families, From July 1, a single person on the 1 person $500 $600 groups to run social service and starting with those with young ComCare Long-Term Assistance 2 persons $870 $1,000 other programmes at or near children, to understand what scheme will get $600 a month, up 3 persons $1,130 $1,400 rental block precincts. they are going through and their from $500. Two-person house- 4 persons $1,450 $1,750 The MSF will set up the first aspirations, to help them. holds will get $1,000 a month, up Source: MINISTRY OF SOCIAL AND four social service hubs, to be Mr Alvin Goh, cluster director of from $870 now.