SINGAPORE: A workgroup set up by government feedback portal REACH, which looked into manpower issues, has recommended better support programmes for low-income workers who are above 65 years old.
It recommended an unemployment credit, in which a worker who has been laid off can take a loan from his Central Provident Fund (CPF) account for three months.
The loan amount would be determined by the last-drawn salary of the worker, and would be subject to a cap of three months.
To fund the scheme, workers would contribute one per cent of their monthly income. The government would co-fund the scheme by making the same amount of contribution.
Those earning below S$1,000 may be exempted from contribution, with the government paying the full amount into the account.
The loan has to be paid back upon employment.
Another proposal is for a Wage Insurance Scheme which subsidises 50 per cent of salary difference between new and old jobs, when an individual who is involuntarily unemployed take on a lower-paying new job.
Like the Individual Unemployment Credit proposal, this insurance scheme is funded via a one per cent co-payment by workers and the government.
A third recommendation is a basic retirement grant.
REACH said the proposal is to provide a modest monthly stipend to individuals aged 65 years and above, who are identified as being in the low income and savings groups, to assist them with meeting their basic consumption needs.
The workgroup suggested a monthly stipend of S$200 to S$300, similar to a scheme in Hong Kong called the Normal Old Age Allowance.
To determine eligibility and to ensure that the scheme is targeted, means-testing can be conducted through assessing a worker's income level and assets.
REACH said this small grant is intended to be just one component of retirement adequacy, with other components like part-time work and personal savings making up the rest.
To help older workers integrate into the workforce better, the workgroup has also suggested job re-design, such as having flexible working hours and shorter shifts, as well as customised training such as an internship programme to help older workers learn customer service skills.
Responding to the workgroup's recommendations, the Manpower Ministry (MOM) said the government is committed to helping older and low-wage workers and will study the proposals.
It added that the budgetary implications of any proposal must also be carefully considered, so that any schemes that are rolled out are sustainable.
The loan amount would be determined by the last-drawn salary of the worker, and would be subject to a cap of three months.
To fund the scheme, workers would contribute one per cent of their monthly income. The government would co-fund the scheme by making the same amount of contribution.
Those earning below S$1,000 may be exempted from contribution, with the government paying the full amount into the account.
The loan has to be paid back upon employment.
Another proposal is for a Wage Insurance Scheme which subsidises 50 per cent of salary difference between new and old jobs, when an individual who is involuntarily unemployed take on a lower-paying new job.
Like the Individual Unemployment Credit proposal, this insurance scheme is funded via a one per cent co-payment by workers and the government.
A third recommendation is a basic retirement grant.
REACH said the proposal is to provide a modest monthly stipend to individuals aged 65 years and above, who are identified as being in the low income and savings groups, to assist them with meeting their basic consumption needs.
The workgroup suggested a monthly stipend of S$200 to S$300, similar to a scheme in Hong Kong called the Normal Old Age Allowance.
To determine eligibility and to ensure that the scheme is targeted, means-testing can be conducted through assessing a worker's income level and assets.
REACH said this small grant is intended to be just one component of retirement adequacy, with other components like part-time work and personal savings making up the rest.
To help older workers integrate into the workforce better, the workgroup has also suggested job re-design, such as having flexible working hours and shorter shifts, as well as customised training such as an internship programme to help older workers learn customer service skills.
Responding to the workgroup's recommendations, the Manpower Ministry (MOM) said the government is committed to helping older and low-wage workers and will study the proposals.
It added that the budgetary implications of any proposal must also be carefully considered, so that any schemes that are rolled out are sustainable.
