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
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- Deputy Prime Minister Lawrence Wong said that the S$4,000 SkillsFuture top-up can be spent on selected courses with "better employability outcomes"
- Those aged 40 and above can also get a monthly training allowance up to S$3,000 if they enrol in selected full-time courses
- Delivering his Budget 2024 speech in Parliament, Mr Wong also said that Institute of Technical Education graduates aged 30 and below will get a S$5,000 top up to their Post-Secondary Education Account if they enrol in a diploma programme
- These are measures aimed at ensuring that Singaporeans are able to continuously upgrade their skills throughout life, and to ensure that wage disparities can be reduced by uplifting lower-wage workers, said Mr Wong
BY
JUSTIN ONG
@JustinOngTODAYPublished February 16, 2024
Updated February 16, 2024
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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, Deputy Prime Minister Lawrence Wong announced on Friday (Feb 16).
Delivering his Budget 2024 speech in Parliament, Mr Wong added that unlike the basic S$500 that Singaporeans currently have, the S$4,000 credits, which will be given out in May 2024, 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.
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.
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Mr Wong said these moves are aimed at ensuring that Singaporeans are able to continuously upgrade their skills throughout life, and to ensure that wage disparities can be reduced by uplifting lower-wage workers.
WHY IT MATTERS
The Forward Singapore exercise that was launched last October by Mr Wong had highlighted concerns about the career progression of mid-career workers and that of ITE graduates.The exercise involved a year-long consultation with more than 200,000 Singaporeans that culminated in a report last year that presented the 4G leaders' vision of how national policies should be shaped in all areas of society, from health to education to housing.
The report cited how many Singaporeans did not want to 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,” said Mr Wong.
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The Forward Singapore exercise had also looked how to help younger ITE upgraders defray the costs of obtaining a diploma, as well as how to encourage them to upskill earlier and give "greater recognition" to those who do.
Mr Wong said on Friday that the vast majority of Singaporeans who participated 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,” said Mr Wong.
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
For mid-career workersMr Wong announced a top-up in SkillFuture credit of S$4,000 for all Singaporeans aged 40 and above:
- They will get the top-up in May this year
- For those who are younger than 40, they will get the top-up when they reach 40, said Mr Wong
- While the basic S$500 SkillsFuture credit that is given to all Singaporeans aged 25 and above can be used for a “wide range of courses”, the S$4,000 credit will be more targeted at selected training programmes with better employability outcomes
- This includes part-times and full-time diploma, and undergraduate programmes, as well as courses for the Progressive Wage Model (PWM) sectors, said Mr Wong
- The PWM sectors comprise the cleaning, security, landscape, lift and escalator, and retail sectors
Singaporeans aged 40 and above can also get a monthly training allowance up to S$3,000 if they enrol in selected full-time courses:
- The training allowance will be equivalent to 50 per cent of one’s average income over the last 12-month period
- The allowance will be capped at S$3,000 per month
- Every individual can receive up to 24 months of training allowance throughout their lifetime
- Mr Wong said that 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
- This allowance will be made available in early 2025
Currently, 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.
For young ITE graduates
To encourage and support ITE graduates in their upskilling efforts, Mr Wong introduced the ITE Progression Award for graduates aged 30 and below:
- Those who receive the award will get a S$5,000 top-up to their Post-Secondary Education Account
- The award will be given to ITE graduates when they enrol in a diploma programme, and is intended to help them offset the costs of obtaining a diploma
- When the award recipients attain their diplomas, they will get a further S$10,000 top-up to their CPF ordinary account.
- “This will give them a head-start in purchasing a home, or saving for retirement,” said Mr Wong
- He added that the award represents the Government’s continuing commitment to uplift ITE graduates and "to better equip them in their journey of lifelong learning"
