ST 28/02/2007 :Workfare's Medisave rule based on self-reliance principle

Straits Times 28/02/2007
Workfare's Medisave rule based on self-reliance principle

GETTING self-employed and informal workers to make some contribution to their Medisave accounts before receiving assistance is a reasonable practice, Manpower Minister Ng Eng Hen said yesterday.

'It is consistent with promoting self-reliance and effort before government assistance is sought or given,' said Dr Ng, referring to the Workfare Income Supplement scheme announced two weeks ago.

Under the scheme, such workers would be eligible for Workfare if they first pay a small sum into their Medisave accounts.

Mr Christopher de Souza (Holland-Bukit Timah GRC) had asked how the Government would ensure that they would benefit from contributing to Medisave, as they already earned so little each month.

He posed the question during the half-hour allotted for questions, before the House debated the Budget.

Dr Ng replied that Workfare, as a structural feature of the social safety net now, must be based on the right principles.

'Otherwise, Workfare can slide into welfarism and become unsustainable as costs escalate,' he said.

He cited the example of cleaners who earned about $600 a month, saying that a contribution rate of 3 per cent to Medisave was reasonable and would draw such workers on board the CPF network.

'And the amount of CPF you get is a few times what you put in. So I think it's a fair system,' he said.

Homeboy cares about his homies still in the ghetto!