Budget 2024: S$4,000 SkillsFuture top-up for S'poreans aged 40 and above, up to S$3,000 monthly training allowance for selected courses (2024)

SINGAPORE — All Singaporeans aged 40 and above will receive a S$4,000 top-up in SkillsFuture credits, and if they are enrolled in selected full-time courses, they can receive up to S$3,000 each month as training allowance.

This was announced by Deputy Prime Minister Lawrence Wong on Friday (Feb 16) as he deliveredhis Budget 2024 speech in Parliament.

He added that unlike the basic S$500 credits that Singaporeans now have, the S$4,000 credits, which will be given out in May, will be more targeted in scope.

"We will confine its usage to selected training programmes with better employability outcomes," he said, adding that younger Singaporeans will get the top-up when they turn 40.

TheSkillsFutureprogrammebegan as a national movement to promote a culture of lifelong learning.

For Institute of Technical Education (ITE) graduates aged 30 and below, they will get a S$5,000 top-up to their Post-Secondary Education Account if they enrol in a diploma programme.

In addition, these ITE graduates will receive a further S$10,000 top-up to their Central Provident Fund (CPF) Ordinary Account upon attaining their diploma.

Mr Wong said that these moves are aimed at ensuring that Singaporeans are able to continuously upgrade their skills throughout their lives, and to ensure that wage disparities can be reduced by improving the conditions for lower-wage workers.

WHY IT MATTERS

The Forward Singapore reportthat was released last October by Mr Wong had raised concerns about the career progression of mid-career workers and that of ITE graduates.

The Forward Singapore exercise involved a year-long consultation with more than 200,000 Singaporeans that culminated in a report last year that presented the fourth-generation government leaders' vision of how national policies should be shaped in all areas of society, from health to education to housing.

The report showed that many Singaporeans did not wantto solely upgrade their skills, but also undertake a "significant reboot" in the middle of their careers to grab new opportunities.

In his Budget speech, Mr Wong said that while “good progress” has been made with the implementation of SkillsFuture,there is more to be done.

“Continuous skills upgrading throughout life is now more important than ever... We must firmly establish SkillsFuture as a key pillar of our social compact,” he added.

The Forward Singapore exercise had also looked at how to help younger ITE students who want to further their education defray the costs of obtaining a diploma, as well as how to encourage them to upskill earlierand give "greater recognition" to those who do.

Mr Wong said on Friday that the vast majority of Singaporeans who took part in the exercise welcomed “broader definitions of success” and ensure more diverse pathways for individuals to excel.

“This also means that we must accord greater value to those who are skilled in technical hands-on abilities, as well as those with the social and emphatic traits to excel in service jobs.”

He added that in particular, the wages and career prospects of ITE graduates should not be “too far below” their polytechnic and university-going peers.

MORE SUPPORT FOR WORKERS IN BUDGET 2024

1. For mid-career workers

Mr Wong announced a top-up in SkillFuture credits of S$4,000 for all Singaporeans aged 40 and above:

• They will get the top-up in May 2024
• For those who are younger than 40, they will get the top-up when they reach 40
• The basic S$500 SkillsFuture credits that aregiven to all Singaporeans aged 25 and above can be used for a “wide range of courses”, but the S$4,000 credit will be more targeted at selected training programmes with better employability outcomes
• This will includes part-timeand full-time diploma courses, and undergraduate programmes, as well as courses for the Progressive Wage Modelsectors
• The cleaning, security, landscape, lift andescalator, and retail sectors are those under the Progressive Wage Model

Singaporeans aged 40 and above can also get a monthly training allowance up to S$3,000if they enrol in selected full-time courses:

• The training allowance will be equivalent to 50 per cent of one’s average income over the latest available 12-month period
• The allowance will be capped atS$3,000 a month
• Every person can receive up to 24 months of training allowance throughout his or her lifetime
• This will support the full duration of a SkillsFuture career transition programme, and more than half the duration of most qualifications issued by the institutes of higher learning, Mr Wong said
• This allowance will be made available in early 2025

Mr Wong also said that more reskilling options will be provided to Singaporeans aged 40 and older, to pursue another full-time diploma at the polytechnics, ITE and arts institutions at subsidised rates from the academic year 2025 onwards.

Right now, those who have previously received Ministry of Education (MOE) subsidies or government sponsorship for a diploma or higher qualification are not eligible for another subsidised full-time diploma qualification.

2. For young ITE graduates

To encourage and support ITE graduates in their upskilling efforts, the ITE Progression Award will be introduced for graduates aged 30 and below:

• Those who receive the awardwill get a S$5,000 top-up to theirPost-Secondary Education Account administered by the Ministry of Education
• The award will be given toITE graduates when they enrol in a diploma programme, and is intendedto help them offset the costs of obtaining a diploma
• When the awardrecipientsattain their diplomas, theywill get a further S$10,000 top-up to their CPF Ordinary Account.
• This will give them a head-start in buying a housing unitor saving for retirement,Mr Wong said
• He added that the award represents the Government’s continuingcommitment to "uplift" ITE graduatesand "to better equip them in their journey of lifelong learning"

SIGNIFICANT UPTAKE FOR SKILLSFUTURE CREDIT TOP-UPS: EXPERTS

Industry experts said that they expect a “significant uptake”, or use of the $4,000 SkillsFuture credit top-ups, given that this support measure is targeted atmid-career professionals.

Managing director for the Singapore and Indonesia branches of recruitment agency Michael Page,Mr Nilay Khandelwal, said that this group of professionals in particular are “facing the challenges of a rapidly evolving job market".

Experts also expect that the new $3,000 monthly training allowance for individuals enrolled in full-time courses will increase participation in such courses.

“While the adequacy of this allowance may vary depending on individual circ*mstances and industry factors, it serves as a valuable resource to offset financial concerns associated with upskilling endeavours,” saidgroup chief executive of global recruitment firm Reeracoen Mr Kenji Naito.

Besides an increase in participation in such courses, the allowance could also see education providers scaling their fees to ensure that their courses are affordable and accessible, said Ms Dolon Mitra, director of human resource transformation at consultancy Change Et Al.

As for whether companies are ready to accommodate employees taking time off to retrain and upgrade themselves, Mr Naito said that there are already a number of employers who support such endeavours with forward-thinking companies “increasingly investing in employee development initiatives to stay competitive in a rapidly evolving marketplace”.

Other experts, however, believe it will be challenging for firms, especially small companies, to accommodate extensive time off for learning in today’s economic environment.

Mr Adrian Choo, founder of career strategy consulting firm Career Agility International, while multi-national corporations maybe be willing to support retraining, smaller companies may not have the “bandwidth” to let their staff take time off.

As for how effective the SkillsFuture top-ups will be, Ms Dolon said it ultimately depends on whether clear guidance is provided on what skills and specialised areas individuals should pursue in order to adapt to a changing economy.

“Singapore's leadership sets a significant example for other countries, but ensuring that the top-up is maximised to propel the entire workforce forward is key,” she said.