Discussion Forum

A study by MTI revealed that 47.8 percent of respondents from 1,000 low-wage households always prefer to receive a combination of cash and CPF contributions for Workfare Income Supplement (WIS), regardless of the total payout sum. Only 14 percent always prefer cash payments.

The study which aims to examine the preference for cash versus CPF also showed that women and homeowners were more likely to prefer CPF payments over cash, while self-employed and those with diplomas or university degrees value cash more.

The survey highlighted the fact that most respondents understood the need to save for retirement, but there are some who chose cash because they were likely to be struggling to cope with the cost of living due to inflation. This makes it difficult to structure WIS in a way that satisfies everyone as there has been feedback for the cash component to be boosted.

The current income cap for WIS is $1,700 while the cash vs. CPF ratio for WIS payout is 1:2.5

Mr Zainal Sapari, who heads an NTUC division that looks after contract, casual and low-wage workers calls for the Government to give those who are unable to cope with the cost of living more cash without reducing the CPF portion of their WIS.

Read more at:

• The Straits Times' article "Many low-wage workers prefer cash plus CPF mix"
• MTI Insights "Cash vs CPF - Understanding the Preferences of Low-Income Residents through a Field Experiment"

What are your views on this result?