Jobseeker support scheme: Workers must actively hunt for jobs to qualify for monthly payouts

The new temporary financial support for involuntarily unemployed workers will incentivise them to return to the workforce with a better-fitting job, said the Ministry of Manpower (MOM) on Tuesday (Aug 27).

To qualify for the monthly payouts, they have to actively search for a new job such as applying for jobs, attending career coaching or participating in eligible training courses, the ministry added.

This follows Prime Minister Lawrence Wong's announcement of the SkillsFuture Jobseeker Support Scheme in his National Day Rally speech on Aug 18.

PM Wong previously said that lower- to middle-income workers who are involuntarily unemployed will receive a total of up to $6,000 over a period of up to six months while they undergo training or look for another job.

Sharing details of the new scheme on Tuesday, MOM said that the financial support for jobseekers will be rolled out in April 2025.

It is meant to help those who became involuntary unemployed due to reasons including retrenchment, cessation of business, or if their employment has been terminated due to illness, injury or accident.

The scheme will be available to Singaporeans aged 21 and above, who previously earned a monthly average salary of $5,000 or less in the past year. 

They must reside in a property with an annual value of $25,000 or less, and have become unemployed due to involuntary reasons.

Individuals are also eligible for the scheme if they were employed for at least six months in past year prior to  their application. 

Meanwhile, permanent residents aged 21 and above will be able to apply for the jobseeker scheme from the first quarter of 2026.

With the median wage for Singapore residents at $4,500, MOM said that the payout will help people — who need it the most — bounce back from employment setbacks.

"We estimate that around 60,000 Singapore residents will be eligible for the scheme per year, which will account for more than 60,000 of involuntarily unemployed persons," they added.

While involuntarily unemployed workers will receive a total of up to $6,000, MOM said that the payouts will be tiered over a six-month period.

Individuals eligible for the scheme will receive up to $1,500 in the first month, with the payout subsequently tapering down.

The monthly payout will also be capped at the individual's last drawn monthly salary.

For example, an involuntary unemployed worker who used to earn $1,200 per month will receive that amount in the first and second months.

And when an individual under the scheme secures a new job, they will not be eligible for subsequent monthly payouts.

The tiered payment with higher payouts at the start is meant to encourage eligible jobseekers to apply for the financial scheme, and incentivise them to return to the workforce at the same time, MOM explained.

Those who have received a payout will not be able to apply for the scheme again for a period of three years.

The SkillsFuture Jobseeker Support scheme is estimated to cost over $200 million a year, the ministry added.

MOM emphasised that this new scheme is not a social assistance scheme to meet the needs of households facing financial distress after a member becomes involuntarily unemployed. 

"They can receive support from other social assistance schemes, such as ComCare Short-to-Medium-Term Assistance (SMTA) and the GST Voucher scheme," the ministry said 

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chingshijie@asiaone.com