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MOM announcements in 2015 Budget Statement

There are 5 key MOM-related announcements in DPM Tharman Shanmugaratnam's Budget Statement made on 23 Feb 2015. 

Budget 2015

This year’s Budget Statement was delivered by Deputy Prime Minister and Minister for Finance, Mr Tharman Shanmugaratnam, in Parliament on Monday, 23 February 2015.

You can find the latest MOM-related news and announcements on this webpage, as well as on our official MOM Facebook.

The 5 key announcements related to MOM are set out as below.

Retirement AdequacyShow

1) Silver Support Scheme

A new Silver Support Scheme will be implemented around the first quarter of 2016 to provide an income supplement to elderly Singaporeans with lesser means in their retirement years.

You can find out more in the Factsheet on the Silver Support Scheme.

For latest update, please refer to the Budget highlights 2016 and Silver Support Scheme.

2) Changes to the CPF to help Singaporeans save more for retirement

From January 2016, there will be an increase in the CPF salary ceiling and an increase in CPF contribution rates for older workers. An additional 1% Extra Interest on the first $30,000 of CPF balances from the age of 55 will also be introduced.

You can find out more in the Factsheet on CPF changes to help Singaporeans save more for retirement.

Support for businesses as they continue to restructureShow

1) Extension and Enhancement of the Temporary Employment Credit (TEC)

The TEC will be raised to 1% of wages in 2015, or an additional 0.5 percentage points on top of the original TEC. The TEC will also be extended by 2 years, to help employers adjust to cost increases associated with the increase in CPF salary ceiling and the employer CPF contribution rates for older workers.

2) Enhancement of the Special Employment Credit (SEC)

Employers who re-employ older workers aged 65 and above will receive an additional offset of up to 3% of an employee’s monthly wages through the SEC. The SEC enhancement would help manage employers’ overall costs and encourage employers to voluntarily re-employ older workers aged 65 and above.

You can find out more:

Enhanced Foreign Domestic Worker (FDW) Levy ConcessionsShow

To help FDW employers with care giving needs, the Government has reduced the FDW concessionary levy rate from $120 to $60 per month. More will benefit as the qualifying criteria for concessionary FDW levies will be expanded to include employers with Singaporean children or grandchildren aged below 16 years old living in the same household, up from 12 today.

You can find out more:

Changes to Foreign Workers LeviesShow

The Government has deferred and rebalanced foreign worker levy rates across various sectors. This is to allow more time for businesses to adjust and restructure, taking into account factors such as the moderation in foreign workforce growth.

You can find out more:

SkillsFutureShow

SkillsFuture marks a major new phase of investment in our people, creating an environment of lifelong learning and developing the skills and mastery needed to take our economy to the next level. Through SkillsFuture, each Singaporean will be empowered to chart their own learning journey throughout life.

Key SkillsFuture initiatives are:

1) SkillsFuture Credit

Every Singapore citizen aged 25 years and above will receive an initial credit of $500 to take charge of their own learning over the course of their lives. The Credit can be used for work-skills related courses, supported by government agencies. This will include courses offered by our Institutes of Higher Learning and accredited education and training providers, as well as a range of courses that are funded by WDA. Further top-ups to the SkillsFuture Credit will be made at regular intervals.

You can find out more:

2) SkillsFuture Earn and Learn Programme

This is a work-study programme for fresh polytechnic and ITE graduates to give them a head-start in careers related to their discipline of study. They can be placed with an employer and have opportunities to learn through structured on-the-job training and institution-based training. Those who successfully complete this programme will receive industry-recognised certification and a sign-on incentive.

You can find out more:

3) SkillsFuture Study Awards

The awards are to support individuals who wish to develop the specialist skills required for future growth clusters. They can also support those who already have deep specialist skills and wish to develop other competencies such as business and cross-cultural skills. A monetary award of $5,000 will be given to 2,000 individuals per year, on top of the normal course fee subsidies.

You can find out more:

4) SkillsFuture Fellowships

The Fellowships are to recognise and develop Singaporeans with deep skills and help them achieve mastery in their respective fields. $10,000 cash will be given to up to 100 individuals per year. It can be used towards training across a broad range of skills upgrading programmes.

You can find out more:

You can also find out about other SkillsFuture Initiatives at www.skillsfuture.sg.

For the latest updates on the Budget, you may also like to check out Singapore Budget 2015 website and MOF Facebook.
Last Updated: 27 October 2016