By Mustafa Shafawi | Posted: 08 February 2011 1644 hrs
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.
-CNA/wk
