National Day Rally: Qualifying age for Workfare lowered to 30, from 35

THE qualifying age for the Workfare Income Supplement scheme will be lowered to 30, from 35, to help younger lower-wage workers, said Prime Minister Lee Hsien Loong.

The government will also raise the amount it spends on the scheme, from the current S$850 million a year, to S$1.1 billion in two years' time, he said during his National Day Rally on Sunday.

"Workfare is effectively a negative income tax. Instead of taxing the incomes of lower-wage workers, the government tops up their salaries in cash and CPF (Central Providend Fund) contributions, and almost half a million workers benefit," he said during the televised address.

Workfare is targeted at Singaporean workers whose earnings are in the bottom 20 per cent - those who earn a gross monthly income of not more than S$2,300 for the month worked. The scheme tops up the salaries of lower-income workers and helps them save for retirement.

According to the official Workfare website, over S$7.8 billion has been disbursed to some 930,000 recipients since the scheme was first introduced in 2007.

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