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Budget 2022 debate: Tan See Leng on Workfare Income Supplement, foreign workforce policy and distribution of tax burdens

28:26 Min

The new S$500 minimum income criterion for the Workfare Income Supplement (WIS) is not a "cutback" for lower-wage workers, said Manpower Minister Tan See Leng in Parliament on Tuesday (Mar 1). He clarified that around 20,000 WIS recipients will be affected, all of them casual or part-time workers. This is because of the estimated 46,600 workers earning below S$500, many do not qualify for WIS due to criteria such as age, spousal assessable income and the annual value of their homes. Workers who do not meet the S$500 minimum due to personal circumstances, such as persons with disabilities or ComCare recipients, will get concessionary Workfare payouts. Dr Tan also explained the rationale behind proposed changes to foreign workforce policy, stressing that "great care" was taken to design the timing of the moves. Finally, he rebuffed proposals on taxes put forth by the Workers' Party, saying they would ultimately raise the tax burden on Singapore’s middle class and be the "surest way to unravel and destroy our social compact".

The new S$500 minimum income criterion for the Workfare Income Supplement (WIS) is not a "cutback" for lower-wage workers, said Manpower Minister Tan See Leng in Parliament on Tuesday (Mar 1). He clarified that around 20,000 WIS recipients will be affected, all of them casual or part-time workers. This is because of the estimated 46,600 workers earning below S$500, many do not qualify for WIS due to criteria such as age, spousal assessable income and the annual value of their homes. Workers who do not meet the S$500 minimum due to personal circumstances, such as persons with disabilities or ComCare recipients, will get concessionary Workfare payouts. Dr Tan also explained the rationale behind proposed changes to foreign workforce policy, stressing that "great care" was taken to design the timing of the moves. Finally, he rebuffed proposals on taxes put forth by the Workers' Party, saying they would ultimately raise the tax burden on Singapore’s middle class and be the "surest way to unravel and destroy our social compact".

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