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Manpower Minister Dr. Tan See Leng on financial assistance tied to the scheme, basis and considerations made in designing the scheme, eligibility for the scheme, and more.
Singapore's Minister for Manpower, Dr. Tan See Leng, has responded to a series of Parliamentary questions regarding the upcoming SkillsFuture Jobseeker Support (JS) scheme.
Speaking in Parliament on Monday (9 September 2024), the minister tackled questions related to financial assistance tied to the scheme, basis and considerations made in designing the scheme, eligibility for the scheme, determining an annual property value of S$25,000 as a factor, and more, which can be tracked here.
Minister Tan shared that following feedback from employers about rising business costs and wanting to find a better alternative to unemployment insurance, the Government has searched for better alternatives to minimise the negative outcomes seen elsewhere. The objective, he added, is to support involuntarily unemployed individuals to rebound into jobs that better match and fit their skills and experience, instead of rushing into ill-fitting jobs due to financial pressures.
Hence, the JS scheme should minimise the potential moral hazard by supporting jobseekers to regain employment and not continued unemployment.
“Jobseekers will need to play their part, to take responsibility for their actions and make an effort to bounce back into work.
"On the Government’s part, we will continue to strongly support jobseekers through employment facilitation and training programmes", Minister Tan said.
Who may qualify for the JS scheme?
Addressing the query on the eligibility criteria for the JS scheme, Minister Tan shared that it has targeted the scheme at the lower- to-middle-income worker earning up to S$5,000 per month before becoming involuntarily unemployed. This is slightly above the median monthly income of resident workers and is the group that is more likely to face some financial pressures.
"With this income criterion, more than SIX in 10 residents who are involuntarily unemployed can benefit from the scheme."
Additionally, talking about how "residing in a property with an annual value of S$25,000" was derived as a condition to qualify for the scheme, the minister said it was used as a proxy to determine households’ wealth for various Government support schemes that provide higher benefits to individuals or households with lower means.
"The threshold of S$25,000 for the JS scheme is aligned with other schemes such as the GST Voucher scheme. This covers about 75% of residential properties, including all HDB flats."
In terms of how applicants' eligibility will be assessed, Minister Tan said all JS applications will be assessed via a system that comprises automated checks using available Government data and further verification checks done by a dedicated Workforce Singapore (WSG) team. For individuals who do not meet the eligibility criteria, appeals will be assessed on a case-by-case basis.
Here, Minister Tan also addressed a query raised on why Permanent Residents (PR) are eligible for the scheme alongside Singapore Citizens (SC). "This is no different from other employment facilitation programmes", he said, sharing the example that both SCs and PRs receive the same support under WSG programmes, such as career matching services and Career Conversion Programmes.
"I want to stress that Singaporeans will always be at the heart of government policies, even while we welcome those who can commit and contribute to Singapore. Our citizens receive the most support and benefit in several areas, including housing, healthcare, education and parenthood", the minister added.
"But PRs have expressed their commitment to Singapore, and contribute to our strengths as a society and economy. Likewise, we should also support our PRs who fall onto hard times to get into good jobs so that they can support themselves and contribute to our economy."
Payout quantum
Coming to his next few points, Minister Tan talked more about the payouts under the JS scheme, sharing that the payout quantum of up to S$6,000 over six months is provided to eligible applicants who have demonstrated active job search efforts.
When asked why the payments are stepped down over time, he explained that the payout schedule is designed to provide a higher payout in the earlier months to offer greater upfront assurance to jobseekers.
These payouts are gradually reduced from the second month onwards to incentivise jobseekers to start work earlier if they find a good-fitting job.
This approach aims to prevent delays in returning to the workforce, which the minister noted could diminish employability. Additionally, since the scheme encourages individuals to find a well-fitting job and remain employed, those who have received payouts will not be able to make another application within three years of their last payout.
"I must emphasise that the total payout of up to S$6,000 should not be viewed in isolation – it actually complements the Government’s broader ecosystem of support." To this point, the leader addressed a query on whether beneficiaries of the scheme can also benefit from other financial assistance schemes. "The answer is 'yes'", he said. "While the JS scheme is not designed as a form of social assistance for households with greater financial needs, beneficiaries are still entitled to receive support from the Government’s social assistance schemes where eligible, such as ComCare Short-to-Medium Term Assistance and the GST Voucher scheme."
On that note, he clarified that beneficiaries of the JS scheme may still qualify for the SkillsFuture Level-Up Programme as long as they meet the eligibility criteria for all the respective schemes. "We encourage jobseekers to actively explore ways to upskill and reskill themselves to bounce back into better jobs."
Concluding his statement, Minister Tan highlighted that the JS scheme "marks a paradigm shift for the Government", acknowledging what Prime Minister Lawrence Wong had previously shared — that a "major reset" is needed to chart the country's way forward.
"This is a reset in Government policies, and just as importantly, a reset of Singaporeans’ views and attitudes. We will regularly review the scheme to ensure that we provide necessary support to the involuntarily unemployed", he affirmed.
Photo: Screenshot of stream, Parliament Sitting, 9 Sep 2024 (MDDI Singapore YouTube)
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