Average Breakdown of Income in Terms of Wage Earnings Only versus Workfare Income Supplement
Ministry of ManpowerSpeakers
Summary
This question concerns the proportion of low-wage workers receiving the Workfare Income Supplement (WIS) and the resulting income breakdown. Assoc Prof Jamus Jerome Lim asked about workers earning under $1,300 monthly, and Minister Josephine Teo stated that nearly 80% of those aged 35 and above receive payouts. Minister Josephine Teo explained that annual WIS payments ranging from $1,700 to $4,000 provide an income boost of 11% to 26%, depending on the recipient’s age group. Eligibility is targeted through criteria including property ownership and spousal income to ensure support reaches those with limited household wealth and lower wages.
Transcript
26 Assoc Prof Jamus Jerome Lim asked the Minister for Manpower for Singaporeans who earn below $1,300 per month, what is (i) the share of those who also receive Workfare Income Supplement and (ii) the average breakdown of income in terms of wage earnings only versus WIS payouts.
Mrs Josephine Teo: The Workfare Income Supplement (WIS) scheme encourages Singaporeans who earn lower wages and have less family support to work regularly and build up their CPF savings. Other qualifying criteria include property holdings and spousal income. This helps to ensure that Workfare provides targeted support to lower-wage workers with limited household wealth.
Nearly 8 in 10 Singaporean workers who are 35 years old and above and earn wages below $1,300 per month through part-time or full-time employment, receive Workfare payouts. Those not eligible live in a property with an annual value exceeding $13,000 (which covers all public housing), or own two or more properties, or have a spouse whose assessable income exceeds $70,000.
Workfare payouts vary according to salary and age. The average monthly salary of employed Singaporeans who are eligible for Workfare, is $1,300. About two-thirds of Workfare recipients are aged 55 and above. For those aged 60 and above, the annual Workfare payout of $4,000 tops up this average income by 26%, while for those aged 55 to 59, the annual Workfare payout of $3,300 provides a 21% boost. For younger age groups, the annual Workfare payouts range from $1,700 to $2,500, providing income top-ups of between 11% and 16%.