SkillsFuture Jobseeker Support starts April 2025, for locals with previous wage of S$5,000 and below

After receiving such payouts, the same worker will not be eligible again for three years

 Sharon See
Published Tue, Aug 27, 2024 · 05:30 PM
    • The SkillsFuture Jobseeker Support scheme marks a "paradigm shift" for the government, Manpower Minister Tan See Leng said during a visit to the Employment and Employability Institute on Aug 27.
    • The SkillsFuture Jobseeker Support scheme marks a "paradigm shift" for the government, Manpower Minister Tan See Leng said during a visit to the Employment and Employability Institute on Aug 27. PHOTO: MINISTRY OF MANPOWER

    SINGAPORE’S long-awaited re-employment support will begin in April 2025, restricted to involuntarily unemployed workers with a previous average monthly salary of up to S$5,000, the Ministry of Manpower (MOM) said on Tuesday (Aug 27).

    Initially, the SkillsFuture Jobseeker Support scheme will be only for Singaporean citizens aged 21 and above. From the first quarter of 2026, it will be extended to permanent residents too.

    As announced at the National Day Rally, the scheme will provide up to a total of S$6,000 over six months. On Tuesday, MOM gave details of how support will taper off, as well as further eligibility criteria.

    The payout quantum will be the highest in the first month, at S$1,500. This falls to S$1,250 in the second month, S$1,000 in the third month, and S$750 per month for the last three months.

    Applicants previously earning below these levels will only get payouts equal to their last drawn salary. Those who find a new job within the six-month period will not get payouts for the remaining months.

    To qualify, jobseekers must demonstrate that they are in “active job search”, which includes applying for jobs, attending career coaching or participating in eligible training courses. Details of this are still being worked out.

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    Around 60,000 residents – more than 60 per cent of involuntarily unemployed persons – are expected to be eligible each year, with an annual expected cost of over S$200 million.

    ‘Not social assistance’

    “We know that beyond the most vulnerable segments of our society, there are others who face financial pressures, especially when they are involuntarily unemployed,” Manpower Minister Tan See Leng said during a visit to the labour movement’s Employment and Employability Institute on Tuesday.

    “So for the first time, we will be giving temporary financial support to involuntarily unemployed persons.” The condition, he added, is that they must “undertake activities that will make it more likely for them to land a job”.

    The scheme should not encourage continued unemployment, he noted. “We want to help jobseekers maintain an ethos of self-reliance, and we want to be able to nudge and reward their efforts to get back on their feet.”

    The payout of up to S$6,000 should not be viewed in isolation, and this is not a social assistance scheme, said Dr Tan.

    The government has other schemes, he added, noting that Jobseeker Support recipients may concurrently receive a training allowance under the SkillsFuture Level-up Programme.

    The payout is not sized to meet the needs of households that face financial distress due to job loss, said MOM. Instead, such households can receive social assistance such as ComCare, GST Vouchers and CDC Vouchers.

    Eligibility criteria

    The S$5,000 income cap is slightly higher than Singapore’s median monthly wage of S$4,550. It is based on average monthly income in the last 12 months, excluding employer Central Provident Fund contributions, and calculated only for the period of employment.

    In other words, a worker who earned a total of S$50,001 over 10 months and spent two months unemployed would not be eligible, as the relevant average monthly income would be over S$5,000.

    The annual value of applicants’ residential property should not exceed S$25,000. This generally covers all Housing and Development Board flats, as well as some lower-value private properties.

    Applicants must have become unemployed due to involuntary reasons such as retrenchment, cessation of business, dismissal or termination.

    They must have been employed for at least six months in the past year, and have been unemployed for at least one month before getting the first payout.

    “This will allow us to target the support to those facing more recent unemployment shocks,” said Dr Tan.

    For the scheme’s launch, there is a one-off concession for Singaporeans who have become and remain involuntarily unemployed from April 2024. If they apply by a certain deadline, to be announced later, they will qualify – though ordinarily, workers who have been involuntarily unemployed for more than six months would not.

    Applicants must show they are in “active job search”, though how this will be evaluated is still being worked on, said Workforce Singapore (WSG).

    Broadly, applicants would have to submit documentation that WSG would check. The agency can also track applicants that participate in its own career coaching programmes, for example.

    Singapore National Employers Federation executive director Sim Gim Guan said that the scheme’s active support measures, such as career coaching, should help with matching jobseekers and employers.

    Said Sim: “Employers are keen to maximise our workforce potential by tapping on various sources of manpower, including those who are involuntarily unemployed. But they may not be equipped with the right skills or have the information on what suitable jobs are available for them.”

    There is no limit to how many times a person may apply. However, after receiving payouts, the same applicant will not qualify again for the next three years.

    Dr Tan said the scheme marks a “paradigm shift” for the government. In designing it, the government considered feedback from tripartite partners and the public, and studied examples from other countries.

    As unemployment insurance has had negative outcomes elsewhere, the government searched for a better alternative, he added.

    “Our starting point is to support displaced jobseekers to evolve into jobs that can fit their skill sets and experiences instead of just rushing it on into the next available job,” said Dr Tan.

    “But at the same time, we also do not want our displaced jobseekers to delay unnecessarily their return into the workforce, because this would diminish their employability.”

    The National Trades Union Congress (NTUC) welcomed the scheme, noting that it has been pushing for unemployment support for years.

    “Truth be told, there were disagreements in NTUC’s early negotiations with MOM. We had deep discussions with MOM and we didn’t see eye to eye,” labour chief Ng Chee Meng said in a statement. “It took us 10 years. I appreciate very much the government’s willingness to reset their approach and design this new policy.”

    NTUC assistant secretary-general Patrick Tay, who has been calling for unemployment support in Parliament since 2014, said the scheme “marks a first step in the right direction” to support involuntarily unemployed persons with financial support, as they would take time to bounce back from employment setbacks.

    “With support from the Jobseeker Support scheme, our workers can focus on upskilling, reskilling, and securing meaningful employment without the immediate pressures of financial insecurity,” he said.

    Dr Tan said the government will regularly review the scheme to ensure support remains adequate.

    “This is what our refreshed social compact is all about,” he said. “As long as workers play your part to build your career health, your career resilience, by pursuing jobs and training opportunities in a very focused and intentional manner, the government will walk each step with you.”

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