Proposal to Modify Eligibility of COVID-19 Recovery Grant from Current Percentage-based Model to Absolute Loss of Income for Low-wage Workers
Ministry of Social and Family DevelopmentSpeakers
Summary
This question concerns Dr Shahira Abdullah’s proposal to modify the COVID-19 Recovery Grant (CRG) eligibility from a percentage-based model to an absolute income loss criterion for low-wage workers. Minister for Social and Family Development Masagos Zulkifli B M M clarified that CRG currently supports lower- to middle-income residents facing retrenchment, extended no-pay leave, or at least 50% income loss. He explained that a percentage-based model better targets those losing a significant proportion of their income and is more advantageous for lower-income individuals than an absolute loss criterion. Under this system, higher-income earners must experience a larger absolute financial loss to qualify, ensuring aid is directed toward those with the least means. For those ineligible for CRG but in need, the Minister suggested seeking assistance through Social Service Offices for ComCare or other forms of community support.
Transcript
39 Dr Shahira Abdullah asked the Minister for Social and Family Development whether the eligibility for the COVID-19 Recovery Grant can be modified from the current percentage-based model to an absolute loss of income for low-wage workers.
Mr Masagos Zulkifli B M M: The COVID-19 Recovery Grant (CRG) supports lower- to middle-income resident employees and self-employed persons who, as a result of the economic impact of COVID-19, are:
(a) involuntarily unemployed due to retrenchment or contract termination;
(b) placed on involuntary No-Pay Leave (NPL) for at least three consecutive months; or
(c) experiencing monthly salary loss or net trade income loss of at least 50% on average for at least three consecutive months.
CRG is intended to target support at those with lesser means and who are significantly impacted by COVID-19. Compared to an absolute income loss criterion, the percentage-based income loss criterion allows us to better target help to individuals in financial difficulty due to loss of a significant proportion of their income, regardless of their absolute income loss. The percentage-based income loss criterion is more advantageous for lower income workers because workers with higher income must experience a larger absolute income loss to qualify for CRG assistance.
We recognise that there may be some who do not meet the CRG eligibility criteria but are in need of assistance due to extenuating circumstances. We encourage those facing financial difficulties to approach our Social Service Offices (SSOs). Our SSOs will assess their needs and circumstances and provide other assistance such as ComCare if they are eligible, or link them up with other forms of community support.