SINGAPORE: The labour movement has suggested that about 40% of Workfare benefits be deposited into a savings scheme, for example, the Medisave account.

The remaining 60% can be given to Singaporeans in cash.

NTUC President John De Payva said that this would help lower-income Singaporeans significantly.

He added that it is important to also give the Workfare benefits to those who are retired and in-between jobs.

The government recently announced that the Workfare scheme will be made a permanent feature of Singapore's social safety net.

It is expected to give more details next year.

Mr De Payva was speaking to reporters on the sidelines of the Courts Megastore opening.

He said: "If you ask the man in the street who is earning a small salary or a retired person, they would say they want everything upfront. But I think we need to think this through, and no less than one third should go into some savings schemes that they can draw on in bad times or when they're retired or when they're sick.

"One area is that it could into a special savings scheme, it could go into Medisave account or some other schemes that you don't touch immediately but you can use in bad times." - CNA/ir