Government Support for Workers- Singapore Budget 2022 Updates
The main initiative of the budget is to create an inculcative environment in Singapore through value-added incentives by the government. As a part of the budget, the government brought out incentives for different classes of workers. This article will speak about the incentives offered by the government to workers.
As a part of the budget, the government brought out incentives for different classes of workers. This article will speak about the incentives offered by the government to workers.
Classification of Workers
Workers in Singapore are classified on the basis of the wages they earn:
- Lower Wage Workers;
- Mid-Career Workers; and
- Senior Workers.
The government has rolled out different support programs and incentives for all classes of workers.
Incentives and Programs for Mid-Career Workers in Singapore
The following are the incentives and programs for workers in Singapore:
- Skills Future Career Transition Programme-Â Under this program, a highly subsidised industrial course is provided to workers.
- SG United Mid-Career Pathways Programme-Â This is a permanent programme offered to mature individuals in Singapore. This programme is offered for a period of 4 to 6 months with allowances of S$ 3,800 per month which is co-funded by the government.
Incentives and Programs for Lower-Wage Workers in Singapore
The following are the incentives and programs for lower-wage workers in Singapore:
Workfare Income Supplement Enhancements-
- From January 2023, the government shall be offering a higher maximum annual pay-out of S$ 2,100 to S$ 4,200.
- The qualifying income cap for lower-wage workers has been increased to S$ 2,500 per month.
- The workfare income supplement is also offered to workers aged between 30 to 34 years.
Securing the economic status of lower-wage workers-
- The progressive wage model has been extended to other sectors where lower-wage workers work.
- Companies that hire any foreign employees must pay locals at least a local qualifying salary which is currently S$ 1,400.
Progressive Wage Credit Scheme-
- Government shall co-fund any form of wage increase for lower-income wage workers from 2022 to 2026.
Incentives and Programs for Senior Workers in Singapore
Increase of Central Provident Fund (CPF) contribution rates-
- For senior workers in Singapore, the government shall increase the CPF to 1.5 – 2 percentage points to the total contribution. Such increase shall be contributed by the employer and the employee.
- CPF transition offset to cover half of the increase in any contributions made by the employer in 2023.
CPF Basic Retirement Sum Adjustments by the Government-
- The government shall increase the CPF to 3.5% for every senior employee after they turn 55 years between 2023 to 2027.
Take Away
The government has rolled out several schemes for all worker classes to uplift the economic status of employees in Singapore.Â
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