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

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.