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To continue providing employers with enhanced transitional support as wages are adjusted under the Progressive Wage Model (PWM), the government will top up S$2.4 billion to the Progressive Wage Credit Scheme (PWCS) fund.
This is part of a suite of measures announced by Minister for Finance and Deputy Prime Minister Lawrence Wong during his Budget 2023 speech on Feb. 14 to help lower-wage workers, seniors, ex-offenders and persons with disabilities.
Enhanced co-funding under PWCS maintained for 2023
During Wong's Budget speech on Tuesday (Feb. 14), he announced that the enhancements to the PWCS will be maintained this year.
The PWCS was first announced by Wong in his Budget 2022 speech and is aimed at providing transitional support to employers as they raise wages for their lower-wage employees.
Under the scheme, the government will co-fund the wages of lower-wage workers between 2022 and 2026.
Enhancements to the scheme were later announced in June 2022.
Under the enhancements, the government will co-fund 75 per cent of worker's wages that are S$2,500 or below for the qualifying year of 2023.
Previously, the co-funding is 50 per cent.
For workers earning above S$2,500 and S$3,000 or below, the government will co-fund 45 per cent of the wages for the qualifying year of 2023.
Previously, the co-funding for this tier of wages was 30 per cent.
The S$2.4 billion top up will enable the continuation of the enhanced co-funding, Wong pointed out.
Schemes to help seniors, persons with disabilities and ex-offenders
Additionally, Wong also announced a series of extensions and enhancements to existing schemes as well as a new scheme to help seniors, persons with disabilities and ex-offenders gain and maintain employment.
Ex-offenders
To encourage firms to employ ex-offenders, Wong introduced a new Uplifting Employment Credit scheme.
Wong shared during his speech that the scheme will be a form of "time-limited wage offset".
Seniors
For seniors, Wong announced that the Senior Employment Credit (SEC) scheme will be extended till 2025.
The scheme was first announced as part of Budget 2020.
Under the scheme, employers who hire workers aged 55 and above and earn up to S$4,000 a month will receive a wage offset from the government.
Wong also announced the extension of the Part-time Re-employment Grant till 2025.
The grant was introduced to encourage employers to offer part-time work to senior workers.
Both the SEC and re-employment grant expired on Dec. 31, 2022.
Persons with disabilities
Wong announced enhancements to the Enabling Employment Credit, which provides wage offsets to firms who hire persons with disabilities (PwDs).
"I will enhance the Enabling Employment Credit to cover a large proportion of wages and a longer duration for PwDs who have not been working for at least six months", Wong said during his speech.
"We know many PwDs want to work, and if given the chance, have valuable skills to offer. As a society, we should give them the opportunity to do so", Wong added.
More details to be shared by Ministry of Manpower
On the announced schemes to support workers of different demographics, Wong shared that more details will be shared by the Ministry of Manpower at its upcoming Committee of Supply.
"The moves I have outlined represent a major investment in our enterprises and people -- from SMEs to large companies, and workers across various life stages and different forms of employment", Wong highlighted.
"We are doing this so that our workers and businesses can be well prepared for the future, with all its uncertainties, challenges, and opportunities", Wong said.
Top image via NEA/Facebook