How does Budget 2022 aim to support lower-income groups?

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Budget 2022 aims to support lower-income groups by expanding wage and retirement support schemes and funding retraining for mid-career workers.

Budget 2022 in Singapore shifts spending priorities and directs funds generated from higher taxes on the wealthy toward support for lower-income and under-privileged groups. It includes expanding the Workfare Scheme, which tops up the salaries and retirement funds of lower-paid workers, and expanding the Progressive Wage Model, which works with businesses to increase worker salaries. The government also plans to direct funds to retrain mid-career employees.
Expanding the Workfare Scheme to top up lower-paid workers
The Workfare Scheme is designed to effectively top up salaries and retirement funds for lower-paid workers. Budget 2022 states that this scheme will be expanded, extending that support to more eligible workers over time. This directly targets income and retirement adequacy for people in lower-paid jobs.
Expanding the Progressive Wage Model with businesses
Budget 2022 also calls for expanding the Progressive Wage Model, which involves working with businesses to increase worker salaries. The model is aimed at raising pay levels for workers in lower-wage segments through employer participation. By pairing government involvement with business wage adjustments, the Budget frames this as a way to lift earnings for lower-income workers.
Using funds from higher taxes on the wealthy to fund support
A key part of Budget 2022’s approach is that the government will use funds generated from increased taxes on the wealthiest members of society. The Budget describes a shift toward taxing wealth and high incomes, including higher income tax rates for income over S$500,000 and over S$1 million, alongside increased property-related taxes and higher fees for luxury cars. It then links those additional revenue measures to increased spending on the local core and on under-privileged groups.
Funding retraining for mid-career employees
Beyond wage-related support, Budget 2022 states that the government will direct funds to retrain mid-career employees. This retraining element is positioned as part of the broader spending plan connected to helping more vulnerable groups. In practical terms, it extends support beyond immediate pay top-ups by addressing skills and employability for working adults in mid-career stages.

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How does Budget 2022 aim to support lower-income groups?

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