Budget Highlights for FY 2013
Vision: A Great Workforce, A Great Workplace
Mission: To develop a globally competitive workforce and build a great workplace, for a cohesive society and a secure economic future for all Singaporeans.
To achieve this mission, MOM has three strategic outcomes:
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Globally Competitive Workforce
Developing a dynamic, flexible and productive workforce that drives economic growth and possesses skills for mobility and growth.
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Financial Security & Lifelong Employability for Singaporeans
Fostering lifelong employability of Singaporeans through skills upgrading, and enhancing income security and retirement adequacy of Singaporeans.
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Progressive Workplaces
Developing safe, healthy and harmonious workplaces with good employment standards and progressive human resource practices for all workers.
On 25 February 2013, Deputy Prime Minister and Minister for Finance, Mr Tharman Shanmugaratnam, delivered the Budget Speech.
Changes to the Workfare Income Supplement Scheme 2013
At Budget 2013, the Government announced revisions to the Workfare Income Supplement (WIS) scheme and CPF contribution rates for low-wage workers.
For WIS, the revisions take into account changes in income levels and inflation. They are also calibrated to give a meaningful level of assistance while encouraging individual effort, and are targeted at those who need it most. The revisions are as follows:
- Income cap extended from $1,700/month to $1,900/month
- Higher WIS payouts of up to $3,500
- More WIS to be given out in cash
- Increased WIS payments to CPF Medisave and Special Accounts
- Additional criteria to improve targeting of WIS
The revisions will apply to work done from 1 January 2013 onwards. This means that the first WIS payment under the enhanced scheme will be made to employees on 1 June 2013 for work done from January to March 2013. About 480,000 Singaporeans are expected to receive $650m in WIS for work done in 2013.
Changes to CPF Contribution Rates for Low-wage Workers
With more cash from the enhancements above and other measures to improve employability (e.g. Workfare Training Support (WTS) scheme, Special Employment Credit (SEC)), the government will be boosting CPF contribution rates for low-wage workers to enhance their retirement adequacy. Thus, there will be new CPF contribution rates for employees earning above $50 up to $1,500 and new Medisave contribution rates for self-employed persons earning Net Trade Income (NTI) of above $6,000 to $18,000. Illustrations below represent the changes to the contribution rates.
Details of changes to WIS and CPF contribution rates can be found in:
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