The SkillsFuture Jobseeker Support (JS) scheme is 'not a social assistance scheme' or 'unemployment insurance', but a way to nudge residents into positive job-seeking behaviour by ensuring that they do not continue to be disenfranchised, said Minister for Manpower Tan See Leng.

Tan was speaking in parliament in response to questions on the new scheme, which aims to provide eligible workers who have lost their jobs with temporary financial assistance of up to S$6,000 for up to six months.

The first payout will be the highest at a maximum of S$1,500, and gradually taper down over the next few months.

The scheme was announced during Prime Minister Lawrence Wong's first National Day Rally speech on Aug. 18.

Criteria for the scheme

Under the first phase of the scheme in April 2025, workers must be lower- to middle-income Singaporeans aged 21 and above, who earned an average of S$5,000 per month or less, to qualify.

Applicants must not be residing in a property with an annual value of more than S$25,000.

Permanent residents (PRs) will also be made eligible in the second phase, which will kick in in the first quarter of 2026.

Workers must have been employed for at least six months in the past 12 months prior to the application.

In addition, they must do their part to actively search for a new job, including applying for jobs, attending career coaching, or participating in eligible training courses.

A better alternative to unemployment insurance

Tan, responding to a question from Bukit Panjang SMC Member of Parliament (MP) Liang Eng Hwa on the considerations and design of the scheme, noted that the government intended to create a "better alternative" to unemployment insurance, which can "lull individuals into a false sense of security" by making it "more attractive" to stay unemployed.

"Our objective is to support involuntarily unemployed individuals to rebound into jobs that better match and fit their skills and experience, instead of rushing into ill fitting jobs due to financial pressures."

Tan emphasised that the scheme will support job seekers in regaining employment and said they will need to "play their part to take responsibility for their actions and make an effort to bounce back into work".

When Progress Singapore Party's (PSP) Non-constituency Member of Parliament (NCMP) Hazel Poa asked why payments for the scheme are stepped down over time, Tan said that it is designed to provide greater upfront assurance to job seekers while incentivising them to keep searching for jobs.

"These payouts are gradually reduced from the second month onwards to incentivise job seekers to start work earlier if they find and land on a good, fitting job," he said. "We do not want them to delay their return into the workforce, as it will diminish their employability."

What about those who don't qualify?

Tan also said that in keeping with the aim of helping job seekers find and retain a good-fitting job, those who have received payouts will not be able to make another application within three years of their last payout.

Poa asked about situations where workers in certain industries experience retrenchment more frequently than in others.

Tan replied that these could be considered on a case-by-case basis for those who are involuntarily unemployed due to circumstances beyond their control, given that the pace of disruptions and change is both accelerating.

In response to a question from Kebun Baru SMC MP Henry Quek, Tan said that appeals would be similarly considered case-by-case for Singaporeans living in private estates based on their circumstances.

As for why PRs are also eligible for the scheme, Tan stressed that while Singaporeans remain at the heart of government policies, permanent residents have also expressed their commitment to Singapore and contribute to our society and economy.

"So likewise, we should also support our PRs, who fall onto hard times to get into good jobs so that they can support themselves and contribute to our economy," Tan said.

Why now?

Liang asked Tan why the government has chosen to launch the scheme now, given that MPs and the labour movement have called for such assistance for many years.

Tan noted that the government started looking at it a number of years ago, and added that the design of the scheme has been refined through Forward Singapore conversations with Singaporeans.

"We have also learned from many other countries in terms of their own benefits for their respective citizens, and eventually sized up the job seeker support scheme, which is really about also renewing and refreshing the social compact," he said.

When asked by Yio Chu Kang SMC MP Yip Hon Weng on whether the job seeker support scheme will be streamlined with other financial assistance schemes, such as those processed by the Ministry of Social and Family Development (MSF), Tan clarified that this is "not a social assistance scheme".

"It is meant to nudge our residents toward a positive behavior of ensuring that they continue not to be disenfranchised, but to actively seek out a job. And this sits on top of other social assistance schemes that are administered by MSF and a host of other agencies that the government has."

Additionally, Tan pointed out that mature workers who are aged 40 and above can also benefit from the Skills Future Level Up Scheme.

Under this scheme, eligible workers who take time off from work to study full-time will get an allowance of up to S$3,000 per month for up to 24 months.

Using an example of a worker aged 40 or more, on a salary of S$5,000, Tan said that if involuntarily employed, they could potentially get a total of S$21,000 in support over a six-month period.

Not the same as WP proposal: Tan

Workers' Party MP Gerald Giam asked Tan if the government would consider making this an "unemployment insurance scheme" so that it is "more fiscally sustainable over the long term", noting that that was what WP proposed in terms of a "redundancy insurance scheme".

In response, Tan reiterated that the jobseeker's support scheme is not an "unemployment insurance scheme" and is very different from what WP has suggested.

He said that through numerous dialogues and engagements with businesses and workers, the government obtained feedback that businesses experience cost pressures, while workers want to have more take-home pay.

"So when we looked at the entire landscape and we also studied other countries' experiences, for a start, we felt that this is the most nuanced way forward with the government taking the burden of providing these job seekers who actively want to look for jobs with the assistance to tide them over this particular period."

Tan pointed out that today, close to 60 per cent of workers get back into a job within six months of being involuntarily unemployed.

"With the scheme, we believe that an even higher proportion of workers will be able to benefit and get back into a good job faster," he added.

Top image from Canva