WORKFARE INCOME SUPPLEMENT

WORKFARE INCOME SUPPLEMENT

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(Impact on low-income Singaporeans): **

23.

Ms Irene Ng Phek Hoong asked the Minister for Manpower (a) how effective has the Workfare Income Supplement (WIS) scheme been in boosting the wages of low-skilled and low-income Singaporean workers, in particular cleaners; (b) whether the wages of the

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lowest-income group have seen increases over the past five years; and (c) if so, what is the percentage of increase each year, calculated with and without the WIS.

Mr Gan Kim Yong: The nominal income of the resident full-time workers in the first quintile increased by an average of 1.5% per year over the last five years, after taking into account a 2.2% decline in 2009 as wages fell across the board because of the recession.

The Workfare Income Supplement (WIS) scheme is designed to supplement the income and retirement savings of older low-wage workers. WIS gave each recipient a supplement to their income averaging over $1,000, or more than one month's worth of wages, for work done in 2009. WIS was enhanced this year to include more workers and raise the maximum payout from $2,400 to $2,800. For example, a 60-year old worker who earns $1,000 a month will receive $2,800 a year from WIS. This works out to an extra 23% of his income.

While WIS can supplement the incomes of older low-wage workers, we must also help them to raise their skills through training and upgrading. Therefore, in July this year, we introduced the Workfare Training Support (WTS) scheme to encourage older low-wage workers to go for training and improve their employability. Under WTS, they can receive up to another $400 cash awards a year if they undergo, complete and pass sustained training. With new skills acquired through regular training and upgrading, these workers can take on higher value jobs and earn higher wages over time.