Budget 2020: Singaporeans aged 25 and above to receive one-off SkillsFuture Credit top-up of S$500

SINGAPORE — Singaporeans aged 25 and above this year will receive a one-off SkillsFuture Credit top-up of S$500, which they can use from Oct 1.

But unlike the previous S$500 credit amount given out to Singaporeans in 2016, which had no expiry date, this top-up credit will expire in five years, which means those intending to use it will have to do so by the end of 2025.

The move, announced by Deputy Prime Minister Heng Swee Keat on Tuesday (Feb 18) as part of Budget 2020, was one of several aimed at helping workers with training and development.

Mr Heng said the top-up credit has an expiry so as to encourage Singaporeans to seize the opportunity provided by the economic slowdown to upgrade their skills. 

The original opening SkillsFuture Credit of S$500 will continue to have no expiry date. 

Aside from the SkillsFuture top-up, Mr Heng announced a slew of other measures to support employers and workers to upgrade their skills. 

1. Help for companies

Employers will receive a one-off S$10,000 SkillsFuture Enterprise Credit that can be used to defray up to 90 per cent of out-of-pocket expenses of business transformation, job redesign and skills training.

• S$3,000 of the total credit will be reserved for workforce transformation programmes

• The remaining S$7,000 can be used on enterprise transformation programmes

Eligible employers will be able to use the credit on supported schemes from April 1 this year.

To qualify, employers have to contribute a total of at least S$750 to the Skills Development Levy — a compulsory levy paid out by employers for all of their employees working in Singapore — in the previous 12 months. 

They also have to have at least three Singapore citizens or permanent residents employed in each of the preceding 12 months.

2. Help for mid-career workers

The Government aims to double the annual placements for workers currently in their 40s and 50s through a SkillsFuture Mid-Career Support Package.

The package includes a hiring incentive — employers who hire local job seekers aged 40 and above through a reskilling programme will receive 20 per cent salary support for six months, capped at S$6,000 in total.

Singaporean workers aged 40 to 60 as of Dec 31, 2020 will receive a special SkillsFuture credit top-up of S$500, on top of the S$500 credit that all Singaporeans aged 25 and above will receive. This additional credit will expire by Dec 31, 2025.

The Government will assemble a group of volunteer career advisors from professional communities to provide mid-career workers with peer-level support and career guidance.

3. Help for senior workers

To support seniors who wish to work longer, the Government will be introducing a Senior Worker Support Package consisting of four measures:

• Senior Employment Credit: Taking effect from 2021, this will provide employers with wage offsets when they employ older Singaporean workers aged 55 and above, with support levels tapering down over time as the retirement and re-employment ages are gradually raised.

• CPF Transition Offset: When CPF contribution rates go up in 2021, the authorities will also provide employers with a CPF Transition Offset to offset half of the increase in employer contributions for one year up to the CPF salary ceiling of S$6,000 per month.

• Senior Worker Early Adopter Grant: The grant will support companies who choose to raise their own retirement and re-employment ages before the legislative changes come into effect. To qualify for the grant, companies must formalise the changes in their HR policies and employment contracts and communicate these changes to their employees. Eligible companies will receive the grant from July 1, 2020 to June 30, 2023.

• Part-Time Re-Employment Grant: The authorities will introduce the Part-Time Re-Employment Grant to support companies that voluntarily provide part-time re-employment to eligible older workers who request for it. This can help older workers who would like to continue working, but prefer to be re-employed on a part-time basis. Eligible companies will receive the grant from July 1, 2020 to June 30, 2023.