4 in 5 low-wage workers have post-secondary or lower education: Zaqy

For lower-wage Singaporean workers, the Workfare Income Supplement scheme is a key pillar of social security - studies show it has been effective in motivating those with lower education levels to enter and stay in the workforce, Senior Minister of S

There are about 30,000 Singaporean low-wage workers, and the highest educational qualification for four in five of them is post-secondary level or lower, said Senior Minister of State for Manpower Zaqy Mohamad.

For about half of these workers – largely employed in roles such as those of office clerks, food and beverage workers, cleaners and shop salesmen – the highest level is secondary education or lower, he said.

More than one-third of the 30,000 low-wage Singaporean workers are aged 50 and above, and this reflects a profile of workers who have less access to higher education and could be at higher risk of being unemployed, he said.

Mr Zaqy was responding in Parliament yesterday to a question from Mr Liang Eng Hwa (Bukit Panjang), who asked for the profiles of workers who earn not more than $1,300 monthly.

One-third of this group of workers are youth aged between 15 and 24 who are in “vacation jobs”, Mr Zaqy said.

Earlier, he said that there are about 30,000 full-time employees and 22,000 self-employed individuals who receive less than $1,300 a month, in response to a question filed by Associate Professor Jamus Lim (Sengkang GRC).

Mr Zaqy said that about half of the 30,000 Singaporeans live in households with a household per capita income of more than $1,300, which suggests they are not the primary breadwinners for their families.

As for what is being done to help this group of workers, Mr Zaqy said that besides receiving Workfare Income Supplement (WIS) payouts, they will continue to be supported by the Workfare Skills Support Scheme.

This enables them to upskill and earn higher wages, he said, adding that other schemes are also available for their daily and medical needs.

Prof Lim had asked for the number of Singaporeans earning not more than $1,300 a month in take-home pay, excluding employer and employee Central Provident Fund (CPF) contributions, as well as other deductions of income.

Mr Zaqy said the International Labour Organisation’s (ILO) definition of earnings includes contributions of employees to social security and pension schemes.

Singapore’s approach is broadly aligned with the ILO’s, and considers personal income to include CPF contributions and WIS payouts because these can be used for necessities, including healthcare and housing, he said.

He said the WIS remains a key pillar of social security for Singaporean lower-wage workers, with studies consistently showing that it has been effective in motivating Singaporeans with lower education levels to enter and stay in the workforce.

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  • Proportion of Singaporean low-wage workers who are youth aged between 15 and 24 and in “vacation jobs”.

In the past three years, an average of about 400,000 people a year have received WIS payouts, said Mr Zaqy. The average payout received annually in the same period was about $1,560, while the maximum was $3,600.

About half, or 49 per cent, of all WIS recipients are aged 60 and above.

In a follow-up question, Ms Carrie Tan (Nee Soon GRC) asked if the age criterion to qualify for WIS – set at a minimum age of 35 – would be revised if the worker is the sole breadwinner in his family.

Mr Zaqy said he understood Ms Tan’s concerns, but suggested that WIS is targeted at older workers, with about half of the recipients aged 60 and above.

For those who are single parents or have other family issues, Mr Zaqy said other government schemes are available, including ComCare or financial assistance schemes in schools.