Model ID: 351a1e70-f141-42b0-8019-da3f5cb9d0b8 Sitecore Context Id: 351a1e70-f141-42b0-8019-da3f5cb9d0b8;

MOM Steps Up Efforts to Improve the Overall Well-Being of Lower-Wage Workers

Senior Minister of State for Manpower Zaqy Mohamad touches on new tripartite standard, progressive wage accreditation, and enhancements to the Workfare Income Supplement.
Model ID: 351a1e70-f141-42b0-8019-da3f5cb9d0b8 Sitecore Context Id: 351a1e70-f141-42b0-8019-da3f5cb9d0b8;
By Ian Tan Hanhonn 07 Mar 2022
Zaqy+Mohamad+900.jpg
Model ID: 351a1e70-f141-42b0-8019-da3f5cb9d0b8 Sitecore Context Id: 351a1e70-f141-42b0-8019-da3f5cb9d0b8;

Senior Minister of State for Manpower Zaqy Mohamad introduced the Tripartite Standard on Advancing Well-being of Lower-Wage Workers in Parliament on 7 March 2022.

The new tripartite standard aims to encourage employers to provide better workplace support for lower-wage workers, and will focus on areas such as training and career development, rest area provision as well as mental well-being.

The mental wellbeing of workers was an issue raised by NTUC Assistant Secretary-General Melvin Yong in his Budget speech on 1 March 2022.

“We recognise that our workforce has experienced significant disruptions to their jobs due to COVID-19. It is important that employers cultivate a healthy working environment,” said Mr Zaqy.

Meanwhile, Mr Zaqy also urged consumers and businesses to support employers who bear the new Progressive Wage Mark accreditation.

The Progressive Wage Mark will only be accredited to employers who are paying the relevant sectoral or occupational progressive wages to eligible workers and the Local Qualifying Salary to all other local workers.

“For employers that go one step further to adopt the new Tripartite Standard on Advancing Well-Being of Lower-Wage Workers, they will be recognised with the ‘Progressive Wage Mark Plus’ accreditation,” Mr Zaqy added.

The Progressive Wage Mark will be launched later in the second half of this year.

Enhancements to Workfare

Workers earning up to $2,500 a month will now be able to qualify for Workfare Income Supplement (WIS) Scheme, up $200 from the previously set qualifying income of $2,300.

From 2023, senior workers aged 60 and above as well as persons with disabilities will be eligible for higher pay outs of $4,200, $200 more than the existing maximum payout.

However, workers now will also need to earn at least $500 a month to qualify for Workfare. Exceptions will be made for low-income workers who qualify for CommCare, as well as for workers who have disabilities and are unable to meet the minimum sum.

The Government is considering extending the concession to caregivers as well, as they may be workers who are unable to work more due to caregiving obligations.

Mr Zaqy said: “Our objective, in line with Workfare’s overall design, is to nudge all our workers, part-time and full-time, towards more gainful employment and a higher sense of achievement. We also want to better target Workfare at those who need it, and not casual workers doing vacation jobs, for example.”

NTUC Vice-President Abdul Samad Abdul Wahab reiterated his clarification on 1 March 2022 and asked if the Government would consider giving concessions to workers who earn more than $2,500 due to overtime pay.  

In reply, Mr Zaqy said that the benchmarks are set to ensure that workers who need workfare the most will have access to the scheme.

“If we had only used basic salaries to determine who will qualify for Workfare, some workers with low basic salary but high overall pay may displace another worker with higher basic salary but lower overall pay from qualifying for Workfare. The worker displaced would have needed Workfare more but does not get it,” he explained.