2024 marked a significant year for workforce-related developments, with several impactful changes shaping the labor landscape in Singapore. New legislation and support schemes were introduced to enhance worker protection, skills upgrading, and job opportunities. Let’s delve into some of the major stories that unfolded in the past year and what lies ahead for both employees and employers.
Workplace Fairness Laws
In 2024, significant strides were made in protecting workers’ welfare through the introduction of new workplace fairness legislation. The first Bill, introduced in Parliament, aims to protect workers from discrimination based on characteristics such as race, age, disability, and caregiving responsibilities. These laws will require employers to set up grievance handling processes and inform workers about the procedures, providing stronger protections against discriminatory practices in hiring, dismissals, and appraisals. The Ministry of Manpower (MOM) and the Tripartite Alliance for Fair and Progressive Employment Practices (Tafep) played a crucial role in advocating for these changes, with efforts supported by the National Trades Union Congress (NTUC). Looking ahead to 2025, the first Bill will be debated in Parliament, with the second Bill expected to expand workers’ ability to file private claims against discriminatory employers.
SkillsFuture Steps Up for Older Workers
SkillsFuture has rolled out the Level-Up Programme during Budget 2024, boosting mid-career workers’ adaptability to evolving employer requirements. Singaporeans aged 40 and above received a $4,000 SkillsFuture credits top-up in May 2024, while others get it when they hit 40. For those 40+, enrolling in approved full-time courses earns a monthly training allowance; part-time courses also provide some allowance. Eligible workers can receive additional training allowance if they qualify for SkillsFuture Jobseeker Support payments. This allowance equals 50% of one’s average income over the past 12 months, capped at $3,000 monthly, with a maximum of 24 months throughout a person’s lifetime. The programme aims to motivate mid-career Singaporeans to update their skills, offsetting training costs and income loss incurred by taking time off for select quality courses with extended durations. In the pipeline, covered workers will receive subsidies to pursue another full-time diploma at select educational institutions starting in the academic year 2025. Potential applicants can expect training allowance applications to open in early 2025, with more details on the way.
Job Seeker Support Scheme
Another milestone in 2024 was the implementation of the SkillsFuture Jobseeker Support scheme, providing financial assistance to workers who lost their jobs involuntarily. The scheme will offer support to jobless individuals, cushioning them against cost pressures and buying them more time to seek out or train for better job prospects. The National Trades Union Congress (NTUC) played a key role in advocating for this scheme, which will be rolled out in 2025 for Singapore citizens and from the first quarter of 2026 for permanent residents. The Government will also provide a one-off concession to Singaporean job seekers who remain unemployed even after the scheme kicks off in 2025.
Platform Workers Act
In response to the growing gig economy, the Platform Workers Act introduced enhanced protection for platform workers such as cabbies, ride-hailing drivers, and freelance delivery workers. These workers will receive increased Central Provident Fund contributions, a standardized work injury compensation regime, and improved bargaining power over issues like earnings and welfare. The NTUC was actively involved in advocating for these changes, emphasizing the need to protect platform workers’ rights and improve their working conditions. Looking ahead to 2025, the new laws will come into force, with the CPF contribution rate for platform workers set to rise, and the Platform Workers CPF Transition Support scheme helping to offset part of the increase for lower-income workers.
Overseas Markets Immersion Programme
The Overseas Markets Immersion Programme (OMIP) supports Singaporean workers seeking overseas work assignments. Companies can get up to 70% funding for an employee’s salary, capped at $5,000 monthly. They can also receive reimbursement up to 70% of the overseas allowance, including food, transport, and housing, capped at $3,000 monthly. For eligibility, companies must pay employees on overseas assignments at least $4,000 monthly. They can receive a maximum of $72,000 per employee over nine months. The programme aims to aid companies in internationalizing efforts, attracting and retaining talent crucial for Singapore’s global business survival. Manpower Minister Tan See Leng emphasized the importance of overseas market experience for companies to stay competitive beyond Singapore. Looking forward, the initiative will benefit over 100 companies and up to 250 local employees in two years, with an initial $16 million allocation from Workforce Singapore.
CPF Changes
Singapore’s CPF system is undergoing significant changes following Budget 2024 announcements. The Enhanced Retirement Sum will now be pegged at four times the Basic Retirement Sum, reaching $426,000 in 2025. While the Special Account for members aged 55 and above will close to streamline the system, monthly salary ceilings are set to rise, ultimately boosting retirement savings and support. This shift aims to cater to an evolving workforce landscape and enhance financial security for Singaporeans, aligning with plans for increased CPF contribution rates for senior workers.
New Guidelines on Flexi-Work Requests
New guidelines on flexi-work requests have kicked in as of Dec 1. These guidelines detail the formal process for workers to request flexi-work arrangements (FWAs) and mandate bosses to review and respond to them appropriately. Employers are now required to establish an internal procedure for employees to submit FWA requests, exploring options like flexi-time, flexi-load, and flexi-place. Flexi-work has gained popularity post-Covid-19 and is crucial in attracting and retaining talent, aiding business continuity during work disruptions. This approach supports Singaporeans in balancing work and caregiving responsibilities, especially with a growing older population. For assistance with FWA requests, individuals can turn to Tafep’s website or reach out to Tafep directly or through the National Trades Union Congress if they are union members.
Work Pass Changes
In a recent announcement in March 2024, changes to work pass regulations were unveiled. Starting Jan 1, 2025, the minimum qualifying monthly salary for new Employment Pass (EP) applicants will rise to $5,600, later applying to renewals. Additionally, those in the financial industry must now earn $6,200 monthly, up from $5,500, reflecting higher wage standards in the sector. This adjustment aims to align EP hiring costs with the earnings of the top one-third of local professionals, ensuring fairness in the system. Looking forward, S Pass qualifying salary and levy will see increments in 2025, following prior adjustments announced in Budget 2022.
