International Business & Economy Introduce redundancy insurance to better protect workers, Sylvia Lim

Introduce redundancy insurance to better protect workers, Sylvia Lim




- Advertisement -

In her Speech in Parliament yesterday, the Workers’ Party chairman, Sylvia Lim, suggested that a redundancy insurance should be introduced by the government to better protect workers whose job may become redundant.
In her speech she said:

In this economic transition, there are hardworking Singaporeans and their families being pushed into limbo. As a society, we should devise some safety nets to give them some peace of mind.

To this end, the government should look into the feasibility of introducing redundancy insurance. One model could involve requiring workers resident in Singapore and their employers, to each contribute a very small % of the employee’s monthly salaries towards a fund. The fund should be geared towards helping workers who undergo involuntary unemployment, meaning those who were made redundant including those terminated with notice.

The fund could gear towards giving a 6-month payout at a fraction of the worker’s last drawn salary (say 40%), subject to a cap, say based on the median wage. Such a modest scheme, of limited payouts which end after six months, will send a clear signal that only a temporary buffer is being provided, incentivising the worker to actively prepare to earn his own income again.

Such redundancy insurance has benefits for both the individual and society. For the individual, he will seamlessly have recourse to this buffer which he contributed to; he may not need to queue up at a social assistance agency and tap on public monies.

He also need not grab the first job opportunity that comes along, but be able to take a bit of time to hold out for a suitable job, enabling a better employee to job fit and sustainability.

Read her full speech here:

Send in your scoop to 

- Advertisement -

National reserves: Whatever their strategic value, Singaporeans have right to know how they are managed

  The ruling People’s Action Party is weaponising knowledge of the exact amount of Singapore’s national reserves as a way of helping it stay in power. That’s unacceptable. It does not have such an in perpetuity right. One of the debates in...

Jolin Tsai’s perky butt got the internet abuzz

Taipei -- Mandopop diva Jolin Tsai isn't shy of flaunting her figure in all kinds of sexy and revealing outfits and her fans are just lapping it up. The 40-year-old singer uploaded a couple of photos from her trip to Yangmingshan...

Man attacks teen, calls him a virus, damages his phone

Singapore—A sudden attack took a teen by surprise when one man started yelling at him, physically harming him, and throwing his phone into a nearby drain at around 10.30pm on Tuesday (Feb 23) on a section of the road near the...

Send in your scoop to