Singapore Budget 2020: Here's What The Government Is Doing To Help Older Singaporean Workers
As part of Singapore’s ongoing quest to prepare for an aging population, more is being done to help older Singaporeans remain relevant in the workforce.
For 2020 budget, here are the major changes that will directly benefit older, mid-career Singaporean workers!
$1,000 SkillsFuture Credit Top Up For Mid-Career Workers
Looking for a mid-career switch?
Singaporeans in their 40s and 50s will receive $1,000 in SkillsFuture Credit this year, to stay employable and move to new jobs and roles.
This constitutes of the renewed $500 top-up that is given to all Singaporeans age 25 and older, and an additional $500 specifically for those aged 40 to 60 as at Dec 31 this year.
Unlike the previous SkillsFuture Credits where there is no expiry date, the new SkillsFuture credits have an expiry date 5 years from the date of issue. This is to ensure timely usage of the credits, especially in the current time of economic slowdown.
The funds can be used for transition programs offered by continuing education and training centres.
“When they start work, it is normal, even celebrated, to stay in one job, in one company for life,” said Minister Heng.
“At the same time, with broader global shifts, exciting jobs will emerge. Our mid-career workers can seize these opportunities and do better for themselves and their families. The Government will do more to support them.”
Double Annual Job Placements
Deputy Prime Minister Heng Swee Keat also announced that the government “aims to double annual job placement of locals in their 40s and 50s to around 5,500 by 2025.”
To support this goal, there will be more reskilling schemes and professional conversion programs under the Adapt and Grow initiative, that will help workers move to sectors with higher growth.
Increasing Employer CPF Contribution for Older Workers, But Subsidies For Employers to Recruit, Retrain and Retain Older Workers.
There will be an increase in CPF contribution rates for workers.
While further details on this are not divulged during the Budget speech, Minister Heng assured employers that the Government will provide 20 per cent salary support to employers who hire local jobseekers aged 40 and above, to encourage them to step up to recruit, retrain and retain older workers.
The hiring incentive, which is capped at $6,000 in total, will be given out for 6 months. This, however, does not apply to workers for whom employers are already claiming salary support under the Career Support Programme or P-Max scheme.
Volunteer Career Advisors From Professional Communities
There are plans to assemble a team of career advisors from professional communities to provide peer support and career guidance to local mid-career workers. These schemes will be further streamlined by the government to maximise its impact.