The Minister for Finance, Lawrence Wong, delivered the 2022 Budget Statement on 18 February 2022.
A variety of short-term aid measures for those affected by the COVID-19 pandemic, as well as long-term measures to continue investing in the economy and workers, were announced.
The full Budget Statement is available at mof.gov.sg/singaporebudget and the Ministry of Finance’s media release is available at mof.gov.sg/singaporebudget/media-centre/media-releases.
The HR highlights are set out below.
Jobs Growth Incentive
- The Jobs Growth Incentive, which encourages employers to hire more locally, will be extended by six months until September 2022.
SGUnited Jobs and Skills Package
- Jobseekers will be able to enrol in highly subsidised courses through a new SkillsFuture Career Transition Program.
- Company attachments for mature mid-career workers will be made a permanent feature through the SGUnited Mid-Career Pathways Program.
Foreign workforce policies
- The qualifying salary for Employment Pass holders will be increased to S$5,000. The Financial Services sector meanwhile will continue to have a higher EP minimum qualifying salary, which will be raised to S$5,500.
- The minimum qualifying salary for S Pass holders will be gradually increased in phases from 2022 to 2025 for new S Pass applications.
- New levy framework to replace current Man-Year Entitlement framework, as well as adjustments to the Foreign Worker Levy rates for Work Permit holders in the Construction and Process sectors.
- The government will tighten the foreign workforce quota by lowering the Dependency Ratio Ceiling in order to reduce the construction and process sectors’ reliance on foreign workers and spur productivity improvements.
Uplift lower-wage workers
- Between 2022 and 2026, a new Progressive Wage Credit Scheme will be implemented to co-fund wage increases for lower-wage workers.
- The government will significantly enhance the Workfare Income Supplement scheme to boost lower-wage workers and to encourage them to work regularly.
Central Provident Fund
- Singaporean and Permanent Resident senior workers will see their Central Provident Fund contribution rates rise by 3 to 4 percentage points over the next 2 years.
- Employers will be given a Central Provident Fund Transition Offset that will cover half of the increase in employer’s contribution rates for older workers.
- From 2023 to 2027, the Basic Retirement Sum will be increased by 3.5% per year for those turning 55. This is to provide seniors with higher monthly Central Provident Fund payouts in their retirement years.
Any customary the full Wolters Kluwer CCH Singapore Budget Announcement 2022 Tax Report and HR Report are also available to subscribers of CCH IntelliConnect.