Finance Minister introduces a $500 monthly minimum income supplement from 2023

The Finance Minister, in his Budget Statement, introduced a $500 a month minimum income requirement to qualify for the Workfare Income Supplement (WIS) from 2023. This is to encourage part-timers and casual workers to take up regular, full-time work.

In my Budget Debate speech, I expressed concern that this might result in the exact opposite. Low wage workers may decide to drop out of the workforce because their income cannot even cover their travel expenses.

I appealed to the Minister to rescind the minimum income requirement so that all low wage workers will benefit from Workfare.

The Minister for Manpower responded to this in his speech. I then sought clarification from him if the Government had done studies on what would be the best way to encourage able-bodied people to work more, and how imposing a $500 minimum income will encourage rather than discourage them from working. If the Government is still intent on keeping this threshold, I asked if it could adopt a more flexible approach to take into account the various constraints faced by workers that prevent them from earning more than $500.

Finance Minister introduces a $500 monthly minimum income supplement from 2023

In his Budget Statement, the Finance Minister introduced a $500 a month minimum income requirement to qualify for the Workfare Income Supplement (WIS) from 2023. This could potentially impact up to 46,600 employed residents, inclusive of part-timers, who earn less than $500 a month. It will disadvantage workers who have extremely low incomes, are forced to work reduced hours through no fault of their own or have unpaid caregiving responsibilities.

The Minister said that this is to encourage part-timers and casual workers to take up regular, full-time work. However, I fear it will result in the exact opposite. Workers may decide to drop out of the workforce because their income cannot even cover their travel expenses. I appeal to the Minister to rescind the minimum income requirement so that all low wage workers will benefit from Workfare. This was a call made by the Leader of the Opposition yesterday as well.

We must ensure that every working Singaporean receives a decent minimum wage. I welcome the requirements for all local workers to be paid at least $1,400 a month if their companies employ foreign workers, or the workers are in a Progressive Wage Model (PWM) sector or occupation. I am cheered that the Government is going to co-fund the pay increases for lower wage workers over the next five years.

Building on this approach, would the Minister consider also co-funding for five years the pay increases of all Singaporean workers who are taking home less than $1,300 a month, including those who are not in sectors or occupations covered by the PWM. This will help companies adjust to paying their workers a minimum wage and bring Singapore closer towards implementing a national minimum wage, something that the Workers’ Party has been consistently advocating for.

In addition to strengthening our workers’ rights, we also need to build more resilience in our local workers. Some employers have lamented to me about local employees quitting when they are made to work long hours, in contrast with foreigners, whom they claim have no qualms about working overtime. We shouldn’t be dismissive of those who may have genuine domestic responsibilities like taking care of children or elderly parents. However, for those that don’t, including many younger local professionals, I feel it doesn’t hurt to “piah” a bit more during your first job, so you can establish your career and compete more effectively with the global workforce. Of course, do this without sacrificing your mental and physical health!

Finance Minister introduces a $500 monthly minimum income supplement from 2023

Credit : geraldgiam