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Tax & AccountingLegalCorporateFebruary 15, 2023

Singapore Budget 2023: Wolters Kluwer HR (employment law) highlights

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Deputy Prime Minister and Minister for Finance, Mr Lawrence Wong, delivered the 2023 Budget Statement on 14 February 2023.

The 2023 Budget highlights the country's efforts to build a resilient nation post-COVID, while emphasising the importance of “Moving Forward in a New Era”.

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 (Employment Law) Budget highlights are set out below.

Jobs-Skills Integrators

  • The government wants to create labour market intermediaries who can bridge skill gaps in the workforce and optimise training and job placement.

Employment assistance for senior citizens

  • Employers of senior workers will continue to receive wage assistance through the Senior Employment Credit until 2025. The Part-time Re-employment Grant will also be extended until 2025.

Employment Credit

  • To encourage employers to hire people with disabilities, the government will expand the Enabling Employment Credit to cover a larger proportion of wages.
  • A new Uplifting Employment Credit will be introduced to encourage businesses to hire ex-offenders.

Progressive Wage Credit Scheme

  • The government will maintain the increase in the Progressive Wage Credit Scheme and top up the fund by $2.4 billion.
  • The scheme was introduced in the Budget in 2022 and will provide assistance to employers from 2022 to 2026.
  • In 2023, the government will continue to co-fund up to 75% of pay increases for workers earning up to $2,500 per month, gradually decreasing until 2026. A lower co-funding ratio will apply to those earning between $2,500 and $3,000 per year.

Flexible work arrangements

  • The Tripartite Standard on Flexi-Work Arrangements will be implemented by 2024.

Leave entitlements

  • The paid paternity leave will be increased to 4 weeks.
  • The unpaid infant care leave will be increased to 12 days in a year.

Central Provident Fund

  • The government will introduce the Central Provident Fund transition support scheme to provide support for lower-income platform workers during the phase-in period.
  • The next increase in senior worker Central Provident Fund contribution rates will take place on 1 January 2024.
  • The government will increase the minimum Central Provident Fund monthly payout for seniors on the Retirement Sum Scheme to $350 a month.
  • The Central Provident Fund monthly salary ceiling will be increased to $8,000 by 2026.

Register to access the full Wolters Kluwer HR (Employment Law) Report, including:

  • Additional information on the Progressive Wage Credit Scheme Government co-funding levels for eligible wage increases from 2022 to 2026
  • Detailed information on the Central Provident Fund (CPF) contribution rates for senior workers from 1 January 2024 and the year-on-year changes in CPF monthly salary ceiling
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