Approximately 60,000 unemployed Singapore residents are expected to benefit annually from a new job seeker support scheme, set to launch in April next year. The SkillsFuture Jobseeker Support initiative is designed to assist those who earned an average of $5,000 or less per month over the past 12 months of employment. Additionally, applicants must not reside in properties with an annual value exceeding $25,000, as determined by the Inland Revenue Authority of Singapore.
Eligible individuals will receive up to $6,000 over six months, starting with $1,500 in the first month, with subsequent payments tapering off. However, the monthly payouts will be capped at the individual’s previous monthly salary and will cease once the person secures employment. Those who receive payouts under this scheme will not be eligible to apply again for three years, although there is no lifetime limit on how many times one can benefit from the scheme.
To qualify, applicants must have been employed for at least six of the 12 months preceding their application. The scheme, administered by Workforce Singapore (WSG), was detailed by Manpower Minister Tan See Leng during a visit to the Devan Nair Institute for Employment and Employability on August 27, where he witnessed a career coaching session.
This announcement follows Prime Minister Lawrence Wong’s disclosure of the scheme’s maximum duration and payouts during his inaugural National Day Rally speech on August 18. More than 60% of those who become involuntarily unemployed—such as those who are retrenched, dismissed, or affected by company closures—are expected to qualify.
Initially, the scheme will be available to Singaporeans aged 21 and above, with plans to extend eligibility to permanent residents by the first quarter of 2026. The Government also plans to offer a one-time concession to Singaporean job seekers who lose their jobs on or after April 1, 2024, and remain unemployed when the scheme is launched in April 2025, even if they have not worked for at least six of the preceding 12 months.
A Ministry of Manpower (MOM) spokesperson estimated that fewer than 2,000 people would qualify for this concession. The scheme, which will be reviewed regularly, is projected to cost around $200 million annually. The $5,000 income threshold, slightly above the median gross monthly income of $4,550, was established to ensure that lower- and middle-income workers are covered.
When asked if the cap on monthly payouts might disadvantage those who previously earned less, despite being more in need, the MOM spokesperson explained that the cap is intended to prevent individuals from intentionally becoming unemployed to earn more than their previous salary. “It’s crucial that we encourage people to return to work, and the payout structure is designed to incentivize this,” she said.
In a joint statement, MOM and WSG emphasized that the scheme is not a social assistance program but a support mechanism to aid in job searches. It complements existing training and social support schemes, such as ComCare Short-to-Medium-Term Assistance (SMTA), which provides financial aid to households in distress.
Job seekers who participate in reskilling or upskilling activities may still qualify for additional training allowances, such as the SkillsFuture Mid-Career Training Allowance. Those receiving payouts will be required to demonstrate active job-seeking efforts, such as submitting job applications, attending career coaching, or participating in eligible training courses. WSG will provide further details on these requirements closer to the scheme’s launch date.
WSG also plans to reach out to employers who are downsizing to inform them of the support available to affected workers, including the new scheme. Minister Tan described the initiative as a significant shift in government policy, aimed at providing interim support to individuals facing financial pressures due to involuntary unemployment, beyond the most vulnerable in society.
The scheme is designed to avoid making unemployment more attractive than employment while also preventing additional costs from being imposed on employers. “We don’t want employers to offset the costs of an insurance scheme by cutting wages or stopping the practice of providing retrenchment benefits,” Minister Tan said.
He also stressed the importance of helping displaced workers find jobs that match their skills and experience, rather than rushing them back into the workforce prematurely, which could diminish their employability. “WSG will be the first port of call for job seekers looking to benefit from the scheme,” he added. “As long as workers remain focused on building their careers through jobs and training, the Government will stand by them.”
National Trades Union Congress (NTUC) Secretary-General Ng Chee Meng, who accompanied Minister Tan on his visit, praised the scheme as a positive step in a labor market increasingly influenced by new technologies like artificial intelligence. Reflecting on the labor movement’s decade-long push for such support, Mr. Ng thanked the Government for adopting NTUC’s recommendations, calling the policy shift “momentous.”
Source: The Straits Times