Informing retrenched workers about financial relief

I raised a question in Parliament about whether the Ministry of Manpower proactively informs retrenched low-wage workers about the Short-Term Relief Fund (STRF) when employers submit retrenchment notifications or enter liquidation. I asked this question because I was concerned that many lower income workers may be unaware that this support exists during company closures.

The Acting Minister for Manpower explained that when employees file salary claims with the Tripartite Alliance for Dispute Management (TADM), TADM first engages employers to attempt salary recovery, a process which can take one to two months. If mediation fails and the salary cannot be recovered despite best efforts, TADM will then process STRF disbursements for eligible claimants. Those with urgent financial needs are referred to Social Service Offices.

This is the full question and answer from 4 Aug 2026:

Improving Short-Term Relief Fund Outreach To Retrenched Low-Wage Workers And Expediting Emergency Payouts After Company Closure

Mr Gerald Giam Yean Song asked the Acting Minister for Manpower (a) whether the Ministry proactively informs retrenched local, low-wage workers about the Short-Term Relief Fund soon after employers submit retrenchment notifications or enter liquidation; and (b) whether it will consider an interim emergency payout within one week of company closure, given that current disbursements take one to two months after claim verification.

Ms Jasmin Lau: The Short-Term Relief Fund (STRF) provides financial relief as a last resort to eligible local lower income workers when their owed salaries, which their employers are legally obligated to pay, cannot be recovered. When employees file salary claims with the Tripartite Alliance for Dispute Management (TADM), TADM will first engage their employers, mediate and help to recover the owed salaries from the employers. If the salary cannot be recovered despite best efforts, TADM will process STRF disbursements for eligible claimants. The disbursement may take one to two months as TADM needs to establish that the claims are valid and the salaries owed genuinely cannot be recovered. For those with urgent financial needs, we will refer them to their respective Social Service Office for financial assistance to meet their basic needs.

Author: Gerald Giam

Gerald Giam is the Member of Parliament for Aljunied GRC. He is the Head of Policy Research of the Workers' Party of Singapore. The opinions expressed on this page are his alone. View all posts by Gerald Giam