Why the Jobseeker Support Scheme (JSS)?
“We wanted to create a better alternative to unemployment insurance,” says Manpower Minister Dr Tan See Leng in Parliament.
In other countries, unemployment insurance has brought about unintended and indesirable outcomes including being more attractive to stay unemployed.
The Singapore Government is also mindful of rising costs for businesses and do not want employers to offset the costs of an insurance scheme by cutting wages or by stopping the practice of retrenchment benefit, Dr Tan says.
Even with support for those involuntarily unemployed, personal responsibility should remain a cornerstone in our social compact.
The Jobseeker Support scheme will minimise the potential moral hazard by supporting jobseekers to regain employment and not continued unemployment.
The Government will provide support through employment facilitation and training programmes.
On their part, jobseekers will need to take responsibility for their actions and make an effort to bounce back into work.
Eligibility criteria
The scheme is targeted at the lower- to-middle-income worker earning up to $5,000 per month before becoming involuntarily unemployed.
Dr Tan explains that this is slightly above the median monthly income of resident workers and is the group that is more likely to face some financial pressures.
With this income criterion, more than 6 in 10 residents who are involuntarily unemployed can benefit from the scheme.
Quantum payout
The payout quantum of up to $6,000 over six months is provided to eligible applicants who have demonstrated active job search efforts.
Explaining the payout, Dr Tan says that the schedule provides a higher payout in earlier months to provide greater upfront assurance to jobseekers.
These payouts are gradually reduced from the second month onwards to incentivise jobseekers to start work earlier if they find a good-fitting job.
“We do not want them to delay their return into the workforce as it will diminish their employability,” he says.
In addition, the scheme is designed to encourage individuals to find a job with good fit and be retained in the job. Thus, those who have received payouts will not be able to make another application within three years of their last payout.
The Prime Minister had said that a “major reset” is needed as we chart Singapore’s way forward. This is a reset in Government policies, and just as importantly, a reset of Singaporeans’ views and attitudes. We will regularly review the scheme to ensure that we provide necessary support to the involuntarily unemployed.
