Workfare: Self-employed $8 cash monthly?

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July 7, 2018

Why is it that the cash component payout under Workfare is so low?

I refer to the article “Review of wage top-up scheme for low-income workers” (Straits Times, Jul 7).

It states that “Under WIS, Singaporeans earning a gross monthly income of not more than $2,000 can receive wage supplements of up to $3,600 a year. These are made in the form of cash and Central Provident Fund top-ups.”

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).

With regard to “Last year, 366,000 workers received the top-ups, a decline from the 389,000 workers in 2015.

Commenting on this, Mr Zaqy said it was because 42,000 recipients saw their wages increase above the scheme’s income ceiling in 2016 and 2017” – how many are self-employed?

Leong Sze Hian

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About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.