Better Progress, Paying Low-Wage Workers
Mr Wong also announced that the government would maintain its increased share in the Progressive Wage Credit Scheme (PWCS).
In June 2022, PWCS was enhanced by increasing the government co-financing ratio from 50% to 75% for employees with gross monthly wages up to S$2,500 in the 2022 target year. The payment term was he in the first quarter of 2023.
In addition, for employees with gross monthly wages above S$2,500 and up to S$3,000 in the 2022 target year, the co-investment rate has been increased from 30% to 45% for the same pay period.
Tuesday’s announcement means the government will continue its share of co-financing for these same groups of workers in the first quarter of 2024 in the eligible year 2023.
The joint investment share increase was initially only for the eligible year 2022.
To this end, the PWCS Fund will also receive S$2.4 billion in additional funding, Mr Wong said.
First introduced in last year’s budget, the PWCS will provide “transition assistance” for employers to adapt to progressive wage movements from 2022 to 2026, allowing employers to reduce the wages of low-paid employees to ” It was intended to encourage “voluntarily pulling up.” said a fact sheet from the Treasury Department issued on Tuesday.
Last year, the government extended the progressive wage model to more sectors and occupations and required companies hiring foreign workers to pay all local workers at least a local qualified salary, Wong said. added.
These measures, along with the budget announcement, will cover “the majority of low-wage workers” and “help raise their wages.”
Employment support for persons with disabilities and former criminals
To help employers hire persons with disabilities, the government has strengthened enabling employment credits to cover the majority of wages and longer periods of time for those workers who have not worked for at least six months. To do.
of Employment credit activation is currently paid to employers of disabled Singaporeans over the age of 13 with a monthly income of less than S$4,000.
Employers receive 20% of each eligible employee’s monthly salary. The upper limit is S$400 per employee per month. There is no upper limit to the total number of eligible employees.
If an employer employs a person with a disability in a job earning less than S$4,000 per month and the worker is not employed, the employer may pay 10 per employee for the first six months, up to a maximum of S$200 per month. Receive an additional wage offset of %. Worked for the past 6 months before being hired.
“We know that many people with disabilities want to work and have valuable skills that they can offer if given the opportunity. As a society, we should give them that opportunity,” said Wong. said Mr.
Businesses can also expect “time-limited” wage offsets if they employ ex-offenders.
Details of this new Uplifting Employment Credit will be shared at the Department of Labor’s upcoming COS debate. The outcome of this scheme will be reviewed in 2025.
Wong stressed that financial incentives are ultimately just “one way to help people with disabilities and ex-offenders.”
“Also, through organizations such as SG Enable, Yellow Ribbon Singapore and their community partners, we are committed to working on the ground and working with employers to provide meaningful employment opportunities for people with disabilities and ex-offenders. We also need close cooperation,” he added.