MOM COS-in-Brief 2015
Better Jobs
Higher Incomes
a Secure Retirement
Addressing Your Concerns, Investing in Your Aspirations
Investing in your
aspirations and skills
New Continuing Education and Training
(CET) campuses opened in 2014 - the
Lifelong Learning Institute in Paya Lebar and
the Devan Nair Institute of Employment and
Employability in Jurong East
Everyone in different
stages of life should
take charge of their own
learning and career
Starting Work
NEW
Should I start
work immediately
after graduating
from Poly
or pursue
a degree?
NEW
SkillsFuture Earn-and-Learn Programme
Play to your strengths. Hone your skills and join a
customised SkillsFuture Earn-and-Learn Programme for
fresh ITE and polytechnic graduates. Acquire structured
on-the-job training and mentorship to gain a career
headstart in your chosen sector.
SkillsFuture Credit
All Singaporeans aged 25 years & above will receive
a credit of $500 which can pay for work skills-related
courses
Growing Your Career
How can I
keep my skills
relevant and
progress in my
career?
NEW
SkillsFuture Credit
Regular top-ups in learning credits for all to support
skills deepening
NEW
SkillsFuture Study Awards
Every year, up to 2,000 Singaporeans will receive awards
of $5,000 to help individuals develop and deepen their
skills in growth clusters
NEW
SkillsFuture Fellowships
Every year, there will be up to 100 awards of $10,000 for
individuals with deep skills expertise to achieve mastery
in their respective fields
ENHANCED
ENHANCED
Enhancement of Max Talent (To be known as “P-Max”)
Enhanced place-and-train programme for mid-career
PMEs to enter SMEs
SkillsFuture Mid-Career Enhanced Subsidy
All Singaporeans aged 40 and above will enjoy increased
course subsidies of at least 90%, the remaining course
fees can be paid using the SkillsFuture Credit
There are more SkillsFuture initiatives which you can benefit from, find out more from www.skillsfuture.sg
02 / MOM COS-IN-BRIEF 2015
A young graduate entering
the workforce
A mid-career
Worker
Reinforcing fair and
progressive EMPLOYMENT practices
I do feel
somewhat
anxious about
my job at
times
SINCE 2014
Greater Protection for PMEs
Employment Act Changes
Approximately 300,000 PMEs Benefitted
Since 1 Apr 2014, if you are a Professional,
Manager or Executive (PME) earning up to
$4,500 per month, you will have:
•
Salary protection
•
General protection such as unfair
dismissal redress, public holidays and
sick leave benefits
Starting 2015
More Options for Representation
Industrial Relations Act Changes
If you are a manager or executive*, you will
have more options for representation at
the workplace. From 1 Apr 2015, you can
also be represented by rank-and-file unions
recognised by the employer:
•
On a collective basis
•
On an individual basis for re-employment
disputes, in addition to the current
areas of unfair dismissal, victimisation,
retrenchment benefits and employment
contract breaches
*Certain managers and executives may not be eligible for union
representation. For further details on eligibility of representation, please
refer to the Tripartite Guidelines on MOM’s website.
A PME in the workforce
Rolled out in 2014
Ensuring Fair Consideration
•
The Jobs Bank makes job opportunities
more transparent to local job seekers
•
Employers seeking to hire Employment
Pass holders must advertise on the Jobs
Bank and consider Singaporeans fairly
JUL 2014
FEB 2015
Jobs Bank started
with about 12,900
job seekers and
4,300 employers
Some 76,000
job seekers and
16,000 employers
DID YOU KNOW?
150
Number of firms we took
action against for having
discriminatory employment
practices in 2014
MOM COS-IN-BRIEF 2015 / 03
Helping you achieve
peace of mind in retirement
Will I have
enough for my
retirement?
NEW
TO BE Implemented around
the first quarter of 2016
Support Elderly
Singaporeans with
Lesser Means through
Silver Support
NEW
from 1 Jan 2016
Help Singaporeans
Save More while
Working
•
An income supplement of $300 to
$750 per quarter to 20-30% of elderly
Singaporeans with lesser means in
their retirement years
Eligibility to be based on:
A person's
lifetime
wages;
The flat
type he
lives in; and
•
A person's
household
income
The eligibility assessment will be done
automatically and there is no need for
any application
NEW
from 1 Jan 2016
Higher CPF Interest
Rate for Low Balances
CPF Salary Ceiling –
Middle-income Singaporeans can
accumulate more CPF savings,
with CPF salary ceiling increased
from $5,000 to $6,000
For CPF members aged 55 & above:
•
6% for the first $30,000;
5% for the next $30,000; and
4% for balances above $60,000 1
Wow!
Much more
than Fixed
Deposit interest
rates!
Older workers will enjoy
increased CPF contribution rates –
Workers aged 50 to 55 will have
the same contribution rates as
younger workers
Increased CPF Contribution Rates
Age
Employer
Employee
50-55
55-60
60-65
+1%
+1%
+0.5%
+1%
0
0
Based on prevailing interest rates on
balances in Retirement, Special and
Medisave Accounts. Balances in
Ordinary Account can earn up to 4.5%
for members aged 55 and above.
1
I will be able to transfer
my CPF savings above
my Basic Retirement
Sum to my spouse,
which would help
especially if she has low
CPF balances
?
What if I don’t manage to save enough
to meet my Basic Retirement Sum?
Don’t worry. Just set aside what you
have in the Retirement Account. It
will grow with interest and you will
get a payout based on this amount
at 65. For the cohort turning 55 in
2020, we expect that about 7 in
10 active members will be able to
accumulate enough CPF savings to
meet their Basic Retirement Sum.
04 / MOM COS-IN-BRIEF 2015
I will be able to
choose to set
aside the Basic,
Full or Enhanced
Retirement Sum
What can I decide
when I turn 55?
Singaporeans concerned
about retirement
Greater assurance of knowing your
Basic Retirement Sum ahead of time
What will
my Basic
Retirement
Sum be when I
turn 55?
Estimated Lifelong Monthly Payouts through CPF LIFE2
AGE 55
IN 2016
AGE 55
IN 2017
AGE 55
IN 2018
AGE 55
IN 2019
AGE 55
IN 2020
BASIC
Payout
$660 $720
$680 $740
$700 $760
$720 $780
$740 $800
Basic
Retirement
Sum
$80,500
$83,000
$85,500
$88,000
$90,500
2
I will be able
to withdraw
some of my CPF
monies 3 ,
if I need to
CPF Life Payouts start at age 65. Payouts estimated based on a member who chooses the CPF LIFE Standard Plan.
I can decide to defer
the start of my
CPF LIFE payouts,
to get permanently
higher payouts
Cohorts turning 55 from 2016 onwards
will have peace of mind knowing that they
will be able to receive higher payouts by
putting aside a higher sum to cope with
changes in standard of living and inflation
I can choose
my CPF LIFE
Plan
What can I decide
when I turn 65 or later?
If you turn 55 from 2013, you can withdraw up to 20% of
your Retirement Account balances in a lump sum, less the
$5000 withdrawn at 55
3
MOM COS-IN-BRIEF 2015 / 05
Helping you earn more for
a secure retirement
Will I progress
in my job?
Will I have
enough for
retirement after
working so hard
all my life?
Will I earn enough
to support my
family?
Real income* growth of full-time employed Singapore
Citizens at the 20th percentile for the last 5 years
(2009 – 2014) was 1.5% per annum. This was higher than
the previous 5 years (2004 – 2009).
1.5%
p.a.
1.2%
p.a.
2004 2009
* Includes employer CPF contributions, deflated by Consumer Price Index for all items
at 2014 prices
2009 2014
Progressive
Wage Model
Rolled out in 2014
A structured training
and career progression
pathway so you can
earn better wages
over time
by 2016
Progressive Wage Model
for the Cleaning Sector
Progressive Wage Model
for the Security Sector
Supervisor
Senior Security Supervisor
Basic wages of $1,600 or more
Basic wages of $1,700 or more
Multi-skilled Cleaner
cum Machine Operator
Senior Security Officer
Basic wages of $1,400 or more
Recommendations to be
released this year
Progressive Wage Model
for the Landscaping Sector
Basic wages of $1,300 or more
General Cleaner
Security Officer
Basic wages of $1,000 or more
Basic wages of $1,100 or more
NEW
Workfare Income Supplement (WIS)
Covers workers earning
up to $1,900/month
Payouts of up
to $3,500/year
Income supplement of $300
to $750 per quarter
•
Covers 20-30% of elderly
Singaporeans with lesser
means in their retirement years
•
Permanent scheme for both
today’s seniors and those
in the future
Workfare Training Support
06 / MOM COS-IN-BRIEF 2015
Silver Support
•
40% WIS paid in cash to
employees
Subsidy covers 95% of course fees
TO BE Implemented around
first quarter of 2016
LOW WAGE WORKERS in the
cleaning and security sectors
Helping you adjust to
a manpower-lean environment
This year’s Budget
not too bad. But have
to see how other
employers cope with
less manpower and
learn from them.
This tight labour
market is not
going away.
How am I going
to cope as a
SME business
owner?
foreign EMPLOYMENT GROWTH
moderated from 80,000 in 2011
to 26,000 p in 2014.
80,000
2011
local EMPLOYMENT GROWTH
will likely drop due to demographics
and limits to labour force
participation rate growth
95,000 P
26,000 p
2014
20,000
2020
2014
P
Preliminary
There will be even fewer workers available in the future, it’s time to be more manpower-lean now
ENHANCED
ENHANCED & EXTENDED
Special Employment Credit (SEC)
Temporary Employment Credit (TEC)
Supporting employers that hire
older Singaporean workers in 2015
Helping employers adjust to
CPF changes in 2015 and 2016
NEW
ENHANCED
Up to 11.5%
of wages for
those 65 years
old and above
For employers who hire
Singaporeans aged 65 years old and
above, earning up to $4,000 per month
Up to 8.5%
of wages
For employers who hire Singaporeans
aged above 50 years old, earning up
to $4,000 per month
Additional 0.5% of
wages up to CPF salary
ceiling of $5,000
0.5% of wages up to
CPF salary ceiling of
$5,000
Work Permit Holders
DEFERRED TILL 2016;
NO LEVY INCREASES
IN 2015
Foreign
Worker
Levy
Manufacturing sector
•
Freeze levy rates at 2014 levels for 2015
and 2016
Defer this year’s
announced levy
increases to 2016
for all sectors
Employers/
business owners
0.5% of wages
up to CPF
salary ceiling
of $6,000
2017
2016
EXTENDED
2015
Extended
till 2017
Wage Credit Scheme
Government co-funds 20% of wage
increases of Singaporean employees
earning $4,000 and below
Services, Marine and Process sectors
•
Defer this year’s announced levy increases
to 2016
Construction sector
S Pass Holders
1% of wages
up to CPF
salary ceiling
of $6,000
•
Reduce levy for higher-skilled R1 workers
(Man-Year Entitlement-waiver tier) in 2015
•
Raise levy for basic-skilled R2 workers
(Basic Tier) from 2016 – 2017
•
Maintain other levy rates at 2014 levels
Extended Corporate Tax Rebate
till YA2017
30% rebate capped at $20,000
per Year of Assessment (YA)
Expiring Productivity & Innovation Credit
in YA2015 (PIC) Bonus
But PIC and PIC+ will continue till
YA2018
MOM COS-IN-BRIEF 2015 / 07
other key ANNOUNCEMENTS AND UPDATES
Investing in Your Aspirations
and Skills
Launch of iN.LEARN 2020: By 2020, we aim for
75% of WSQ training to be through both online
and classroom learning. We will also set up iN.LAB
by 2H2015, to spur and support innovation efforts
in training.
Helping You Adjust to a
Manpower-Lean Environment
Changes to the Process R1 Criteria for foreign
workers: The current skills upgrading pathway
from R2 (lower-skilled) to R1 (higher-skilled) will
be replaced by two new pathways, to encourage
retention of skilled and experienced workers.
Allowing foreign Work Permit Holders (WPHs) in
certain sectors to take on driving as secondary
function: To improve productivity and allow for more
optimal deployment of WPHs in the construction,
process and marine sectors, they will be allowed to
take on driving as a secondary job function. This
will be capped at a sub-Dependancy Ratio Ceiling
of 20%.
Supporting Families,
Strengthening Community
Enhanced Foreign Domestic Worker (FDW) levy
concessions: The concessionary FDW levy rate will
be halved, from $120 to $60. The qualifying criteria
will also be expanded to include employers with
Singaporean children or grandchildren aged up to
16 years old, from 12 today.
For more information, please refer to
www.mom.gov.sg
Improving Worker Safety
Increase in compensation limits under the
Work Injury Compensation Act (WICA): Following
a recent review, we will be increasing the
compensation limits for death and permanent
incapacity. The cap for medical expenses claimable
will also be raised to fully cover more than 95%
of claims which require hospitalisation. MOM will
also be allowing expenditures that facilitate early
Return to Work to be claimable as part of WICA
medical expenses.
Enhanced Demerit Points System (DPS): The
accumulation of demerit points will now trigger a
company-wide debarment from employment of
foreign workers. Contractors will also need to sustain
workplace safety improvements for a longer period
(18 months) before they are allowed to exit the DPS.
Managing Major Hazard Installations (MHI): MOM
will adopt a Safety Case regime where MHI operators
will need to integrate all their Safety, Health and
Environment protocols onsite, and demonstrate to
regulators that they have managed their risks to as
low as reasonably practicable. We will introduce a
set of MHI Regulations under the Workplace Safety
and Health Act to effect the Safety Case regime.
A National MHI Regulatory Office will be set up in
2016 to better coordinate Safety Case assessments,
inspections and investigations.
Uplifting Low-Wage Workers
WorkRight: Under WorkRight, we have scaled up
our annual proactive inspections on employment
rights ten-fold, from 500 in 2012 to the current
5,000 a year. Employers have been forthcoming in
rectifying non-compliance, benefitting more than
35,000 Singaporeans, of which more than half were
low-wage workers.