Workfare Income Supplement
Definition. Workfare, delivered through the Workfare Income Supplement scheme, is a Singapore policy that tops up the wages and retirement savings of lower income workers who remain in employment. By rewarding work rather than providing unconditional handouts, it raises take home pay while preserving the incentive to keep working.
Workfare supports inclusive growth by lifting the incomes of older and lower wage Singaporeans without dulling work effort. It complements other measures such as the progressive wage model in narrowing income inequality.
This term belongs to Inclusive and Sustainable Growth in Singapore in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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