Unions, employers to be consulted on legislating retrenchment benefits: Dinesh
Recommendations made by the Economic Strategy Review have touched on stronger support for workers.
Trade unions and employers will be consulted on retrenchment benefits before any legislative decision, as stated by Minister of State for Manpower Dinesh Vasu Dash in Parliament on August 5. Dinesh noted that the idea was previously considered but deemed inappropriate. The Economic Strategy Review (ESR) recommendations advocate for enhanced support for workers, and the authorities are exploring the possibility of surpassing the 90% mark for retrenched eligible workers receiving benefits.
The norms outlined in the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment already ensure that nine out of ten retrenched eligible workers receive retrenchment benefits. Responding to questions from Nominated MP Mark Lee, Dinesh mentioned that the Singapore National Employers Federation and unions would be consulted before the government makes a decision.
The Minister of State for Culture, Community and Youth also highlighted Singapore's economic model as not failing, with employment expanding for the 19th consecutive quarter in the first quarter of 2026. He further emphasized that Singapore's wage outcomes are higher compared to other industrialized economies that rely on local champions.
Dinesh stated that Singapore's prosperity is rooted in its ability to compete globally while ensuring that Singaporeans reap the benefits. The Economic Strategy Review (ESR) provides a roadmap to tackle economic challenges and prioritize workers through clearer skill-to-job pathways and workforce guidance. Dinesh supported expanding apprenticeships and industry-level skills support, aligning with NCMP Andre Low's proposal.
The government is already strengthening existing schemes like the Job Support Scheme (JSS) instead of introducing a new universal redundancy insurance scheme. The focus is on enterprise and workforce transformation to create inclusive growth opportunities for Singaporeans, particularly for small and medium-sized enterprises (SMEs).
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