Jobseeker support scheme to have tiered payouts, open to those who earned up to S$5,000 a month

SINGAPORE: A first-of-its-kind scheme in Singapore will hand out up to S$6,000 (US$4,600) over six months to those who have been retrenched, with payouts starting at a maximum of S$1,500 in the first month and declining subsequently.
Only Singaporeans and permanent residents aged 21 and above who previously earned up to S$5,000 a month on average will qualify. 
The person will also have to reside in a property with an annual value of S$25,000 or less, among other conditions.
Called the SkillsFuture Jobseeker Support scheme, payouts can also be stacked on top of existing financial support programmes, said the Ministry of Manpower (MOM) and Workforce Singapore (WSG) on Tuesday (Aug 27). 
The scheme, first announced by Prime Minister Lawrence Wong during the National Day Rally earlier this month, will be launched for citizens in April next year and for PRs in the first quarter of 2026. 
Manpower Minister Tan See Leng said the initiative marks a “paradigm shift” for the government, which has set aside over S$200 million per year to fund this scheme.
While social assistance schemes exist, “there are others who face financial pressures especially when they are involuntarily unemployed”, he said during a speech at the Devan Nair Institute on Tuesday. 
“So … for the first time, we will be giving temporary financial support to involuntarily unemployed persons, but of course, the condition that comes with it is that they must undertake activities that will make it more likely for them to land a job.”
About 60,000 Singapore residents are estimated to be eligible for the scheme per year, which will account for more than 60 per cent of involuntarily unemployed persons.
Dr Tan said that the scheme aims to strike “a careful and delicate balance” to support those who are more likely to face financial pressure and may rush into jobs that do not fit them well.
“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,” he said. 
The scheme is targeted at lower- and middle-income workers and pegged to a salary that is slightly above the median income in Singapore of S$4,550.
Applicants must have become unemployed because of involuntary reasons such as retrenchment, cessation of business, dismissals or termination due to illness, injury or accident.
Those who have received Jobseeker Support payouts in the past three years will not qualify. 
Applicants must have been previously employed for at least six months in the 12 months prior to their application.
They also have to be residing in a property with an annual value of S$25,000 or less. According to the finance ministry in November 2023, this would cover all Housing Board flats and some lower-value private properties.
A property’s annual value is the estimated gross annual rent that could be collected annually if it were to be rented out, and is determined based on the market rate of comparable properties.
“Individuals who have been involuntarily unemployed for more than six months in the past 12 months would ordinarily not be eligible, as the (jobseeker support) scheme is meant to encourage those who face employment setbacks to take immediate actions to re-enter the workforce and not delay their job search,” said MOM and WSG.
However, when the scheme is launched in April next year, a “one-off concession” will be provided for Singaporeans who became involuntarily unemployed on or after Apr 1, 2024, and remain unemployed.
The payouts are also conditional – applicants have to engage in a job search and related activities that will help secure employment.
This includes submitting job applications, attending career coaching and career preparatory workshops, or participating in eligible training courses.
“The job search condition provides flexibility to individuals to customise their job search efforts,” said MOM and WSG. 
More details of the job search conditions will be announced closer to April 2025, the agencies added.
Those who qualify will receive up to S$1,500 in the first month, S$1,250 in the second month, S$1,000 in the third month and S$750 in each of the remaining three months. 
Not all who are eligible will receive a total of S$6,000 over the six months – monthly payouts are capped at an individual’s previous monthly salary. 
For instance, if they previously earned S$1,200 a month, they will receive S$1,200 in the first month and the same in the second month.
They also will not get subsequent payouts if they secure a new job. For instance, if the individual gets a job in the third month, they will not receive the payouts for the fourth, fifth and sixth months.
Dr Tan said the quantum of the monthly payouts is higher at the start to provide “greater peace of mind” immediately after unemployment.
“It will gradually be reduced from the second month onwards, to maintain the tempo, to maintain the incentive for jobseekers to start work earlier if they can find a good-fitting job.” 
The minister said the scheme is not a social assistance scheme. 
“I want to emphasise that the total payout of up to S$6,000 over a six-month period should not be viewed in isolation … The scheme itself is not a social assistance scheme, and the quantum that we’ve sized is to provide added assurance during your job search efforts,” he added. 
Households facing financial distress can get support from other schemes, such as ComCare Short-to-Medium-Term Assistance and Goods and Services Tax Voucher scheme.
Those who enrol in eligible full-time, long-form training programmes under the SkillsFuture Level-Up Programme, or company attachments under WSG’s Mid-Career Pathways Programme, may receive training allowances in addition to the jobseeker support scheme payouts, if they meet the eligibility criteria for the respective schemes.
Under the SkillsFuture Level-Up Programme, Singaporeans aged 40 and above can get a monthly training allowance of up to S$3,000 for up to 24 months if they enrol in selected full-time, long-form courses. 
The allowance will be based on 50 per cent of the person’s average income over the latest available 12-month period.
Under the Mid-Career Pathways Programme, Singaporeans and PRs aged 40 and above can receive a training allowance of up to S$3,800 a month for the duration of an attachment lasting between four and six months. 
For example, a displaced mature worker earning S$5,000 a month can be eligible for payouts under the SkillsFuture Jobseeker Support scheme and an allowance under the SkillsFuture Level-up Programme. 
Over a six-month period, he would receive up to S$21,000, consisting of about S$15,000 of training allowance, and S$6,000 of jobseeker support payouts. 
National Trades Union Congress (NTUC) secretary-general Ng Chee Meng said on Tuesday that the jobseeker support scheme is a “good first step” in supporting workers.
“NTUC has been advocating for unemployment support for workers for many years. Truth be told, there were disagreements in NTUC’s early negotiations with MOM,” Mr Ng said.
“We had deep discussions with MOM and we didn’t see eye-to-eye. 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 is also a Member of Parliament for Pioneer SMC, said he has made “repeated calls in and out of parliament for the past decade for some form of unemployment support to help workers”.
“I thank Minister Tan and MOM for listening to some of NTUC’s suggestions and proposals for the scheme,” he added.
“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.”