Why is the bulk of the Workfare payout to CPF – up to 90% of the payout?

I refer to Josephine Teo’s article “Workfare and the Singapore approach to tackling wage inequality” (Straits Times, Nov 6).

It states that “Over the past decade, about 830,000 Singaporeans have benefited from the $5.5 billion disbursed. It is a permanent feature of our social security system, topping up salaries of low-wage workers and helping them save for retirement.

According to the Workfare web site – Singaporeans age 35 to 44, can receive up to $1,000 a year – 10% cash/ 90% Medisave (self-employed), and up to $1,500 – 40% cash/ 60% CPF (employees).

So, for say a self-employed person age 44 – the maximum Workfare in cash is $100 a year ($8.33 monthly).

Since the above example is ‘the maximum’ – I wonder what are the minimum, median and average payouts?

What’s the point of topping up, up to 90% of the Workfare payout to the Medisave account, which may likely be consumed by ever-rising healthcare costs in the future, in one’s lifetime?

Leong Sze Hian