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PRODUCTION operator Tan Teck Eng will receive $144 in cash next month as part of a special Workfare payment to help older low-wage workers in the downturn.
This is on top of the $860 she will get next month from the regular payout from Workfare - a two-year-old scheme to top up the income of such workers and build up their retirement savings.

'I am concerned whether I can keep my job,' said Madam Tan, 58, whose employer produces business forms.

'I will save up the money. It will be part of my reserves for old age,' added the mother of three grown-up children who earns $960 a month.

Her payout is part of a one-off $150 million boost to Workfare announced in Finance Minister Tharman Shanmugaratnam's Budget speech last month, as workers are expected to take home less pay.

Workers can receive the one-time special payment of up to $1,200 for work done last year and this year.

Giving more details of the payment yesterday, Acting Manpower Minister Gan Kim Yong said it will be given out in three instalments, or up to $400 each time.

The first payment will be made next month - 'a month earlier than the usual Workfare payments so that workers can receive help earlier', he said.

The other payments will be made in October this year and in March next year for employees. The self-employed will receive their payments in May and October this year, and in May next year.

With the likelihood that some low-wage employees will have less regular work this year, the Government will also relax the qualifying criteria, he said.

To receive the special payment for work done last year, a person needs to have worked for at least three months in any six-month period.

To receive the special payment for work done this year, he needs to have worked just two months. But in such cases, the payout will be smaller - at 25 per cent of the full payout for the year.

There is no change to existing criteria: Recipients must be Singapore citizens, aged 35 years and above, and earn an average monthly income of less than $1,500.

They must stay in a property with not more than $10,000 in annual value for the special payment for work done last year, and not more than $11,000 in annual value for the payment for work done this year.

Self-employed individuals, casual and contract workers as well as part-timers can benefit too. But they must pay their Medisave liabilities, Mr Gan said.

A hawker earning $1,000 a month, for instance, needs to make an annual Medisave contribution of $339, 'or less than $1 a day'.

This can be paid for using the GST Credits that will be given out next month and July, Mr Gan said, referring to the payout to offset the impact of the 2 percentage point GST hike in 2007.

The total help the hawker can receive from Workfare for work done last year and this year will be $4,000.

This comprises $800 in cash from the special Workfare payment and $3,200 from regular Workfare payments, which will be made to his Medisave account.

As Mr Gan noted, that is four months' worth of the hawker's income.

Responding to Dr Ahmad Magad (Pasir Ris-Punggol GRC), who asked that the Workfare payout for self-employed and casual workers be made in cash, Mr Gan said this was being done for the special payment.

But regular Workfare payouts will still go into Medisave accounts.

'We should be more cautious about making changes that could affect the work ethic and self-reliance because unlike the special payment, Workfare is a permanent scheme,' he reminded the House.

This article was first published in The Straits Times.