Are you an HR leader in Singapore wondering what the latest budget has in store for you? Look no further! The Singapore Budget 2023 was just announced, and it has some exciting developments for HR professionals. Here are the top 8 takeaways that you need to know:
8️⃣HR Winning Strategies for HRs to Learn from Singapore Budget 2023
#1 💻 Job Skills Integrators is the Game Changer
The Singaporean government is taking steps to bridge the manpower and skills gap in the labour market by appointing job-skills integrators to act as labour market intermediaries. These integrators will work closely with businesses, industries, and employment facilitation partners to optimise or create training programs that improve employment opportunities and earnings for Singaporean workers.
#2💰 Changes to CPF Contribution Rates
The CPF monthly salary ceiling defines the highest CPF contributions payable for Ordinary Wages and is currently capped at $6,000. In response to the upward trend of salaries, the monthly salary ceiling will be raised to $8,000 by 2026. The increase will be implemented gradually in four stages, enabling employers and employees to adapt smoothly to the changes.
#3 📈 Professional Conversion Programs (PCPs) for Job Seekers
The government has allocated $170 million to fund PCPs for job seekers in growth sectors such as healthcare and manufacturing. HR leaders can take advantage of this program to hire and train new employees who may not have the exact skills they’re looking for.
#4 📚 Maternity Leave Enhancements in Singapore
Starting January 1, 2024, the calculation method for government-paid maternity leave benefits for Singaporean children born or adopted will change from a percentage of the mother’s income to a fixed sum, ensuring fairer benefits for all mothers.
#5 👨👩👧👦 Enhanced Parental Leave
From January 1, 2024, fathers of Singaporean children can now avail of four weeks of government-paid paternity leave, double the previous duration. Longer leave enables fathers to bond better with their newborns, promoting a healthier family dynamic.
#6 🌍 Internationalisation and Diversification Assistance Scheme (IDAS)
The government has allocated $1 billion to the IDAS scheme to help companies expand overseas and diversify their operations. HR leaders can take advantage of this scheme to find new talent in different parts of the world and expand their company’s global footprint.
#7 🎓 Singapore’s Enhanced Support for Senior and Part-Time Workers
Senior Employment Credit Scheme and Part-time Re-employment Grant will continue until 2025. These schemes support employers who hire senior workers and provide structured career planning, flexible work arrangements, and part-time re-employment opportunities.
#8 🚀 Enabling Employment Credit in Singapore
The government will improve the Enabling Employment Credit program, which provides wage support to employers who hire individuals with disabilities. Enhancements include larger wage coverage and an extended credit duration for individuals who have been unemployed for at least six months.
Take Action & Move to the Next Level!🪜
The Singapore Budget 2023 has some exciting developments for HR leaders in Singapore. From digital transformation to parental leave entitlements, there are plenty of takeaways that HR leaders need to mark how to stay ahead of the curve and embark on the right journey. Keep these developments in mind as you plan your HR strategy for the year ahead.
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