New Update: What You Need to Know About the Senior Worker Support Package 2023: Up to S$125,000 Grants for Companies

Viewed by 76,532 Smart Towkays

Mar 17, 2023

COVID-19: Senior Worker Support Package 2023

The article was published on 2 March 2021 and was most recently updated on 17 March 2023

Updated on 14th Feb 2023- Extension of the Part-Time Re-employment Grant (PTRG)

At the unveiling of the 2023 Action Plan for Successful Aging, the Ministry of Manpower (MOM) recently announced the extension of the Part-Time Re-employment Grant (PTRG) from 2023 to 2025. This point was made clearer at Budget 2023, and additional information will be released as part of MOM's COS 2023.

The additional employment support programs for elderly workers who want to keep working are much appreciated by SNEF. The Part-Time Re-employment Grant (PTRG) extension until 2025 will benefit senior workers by assisting firms in filling open positions and by helping them in covering overhead expenses.

Updated as on 17 March 2023.

The New Part-time Re-employment Grant provides support to employers who offer part-time re-employment, flexible work arrangements, and structured career planning to senior workers.

The New Part-Time Re-Employment Grant (PTRG) provides up to $125,000 to employers who offer part-time re-employment, other flexible work arrangements (FWAs), and structured career planning (SCP) to senior workers.

This will provide more flexible work options to attract and retain senior workers, and encourage them to stay in the workforce.

~~Currently, there's no update yet on the criteria and the grant amount, do stay tuned to this blog post for any further updates.~~

31st Dec 2022- Senior Worker Grant ended in Dec 2022.

Singapore is currently facing an increasingly aging population, with almost half of Singapore’s population expected to be elderly by 2050. The participation rate of senior workers aged 65 and above in the Singapore workforce has also been increasing yearly, with 28.7% in 2019 compared to 17.6% in 2010. Many old Singaporean workers also need to work longer or re-enter the workforce after retirement to support themselves.

To promote employment and retention for senior Singaporean workers, a S$1.3 billion Senior Worker Support Package was announced in Budget 2020. The package will benefit around 110,000 companies and 570,000 workers over three years until 2022.

Senior Employment Credit (SEC)- Extended to 2025

The Senior Employment Credit scheme helps employers transition to higher Retirement Age and Re-employment age through wage offsets. The SEC scheme also aims to increase the employability of and encourage the retention of senior Singaporean workers.

The Government offers salary offsets under the SEC to assist companies that employ Singaporeans in adjusting to the increased Retirement Age and Re-employment Age. The elder age groups will receive more assistance.

The pay offset applies to Singaporean workers aged 60 and above earning up to $4,000 per month from 2023 to 2025. Employers will receive up to 8% of earnings given to these qualified workers between January 1, 2023, and December 31, 2025, based on their age and income.

The pay offset applies to Singaporean workers aged 55 and above earning up to $4,000 per month in 2021 and 2022.

Who qualifies for the SEC?
Employers that employ Singapore citizens aged 60 and over, earning a monthly compensation of up to $4,000, and have paid timely statutory CPF payments for the employee would be eligible for the payout from 2023 to 2025.
To find out how much your company is eligible for SEC, refer to the FAQ section of the SEC website and any enquires to here.

Central Provident Fund (CPF) Transition Offset scheme

Due to the increase of CPF contribution rates in 2024, a one-year offset of 0.25% of wages will be provided for every Singaporean and Permanent Resident worker aged above 55 to 70. This will help companies to alleviate the rise in business costs from CPF contributions.

The offset will be calculated based on employees’ incomes paid up to the CPF salary ceiling of S$6,300 per month starting 1st September 2023.

Currently, the CPF salary ceiling is set at S$6,300 in 2023

From 1st September 2023, the CPF monthly salary ceiling will be raised by $300 to $6,300. It will go up to $6,800 from 1st January 2024, $7,400 from 1st January 2025 and $8,000 from 1st January 2026

Who qualifies for the Central Provident Fund (CPF) Transition Offset scheme?
Employers that employ Singapore citizens aged 60 and over, earning a monthly compensation of up to $4,000, and have paid timely statutory CPF payments for the employee would be eligible for the payout from 2023 to 2025.

In detail, starting on January 1, 2024,

The overall CPF contribution for workers aged 55 to 60 will rise from the current 29.5% to 31%, a 1.5% increase. The employer's share of the contribution rises by 0.5%, while the employee's share rises by 1%.

The total CPF contribution for workers between the ages of 60 and 65 will rise by 1.5%, from the current 20.5% to 22%. The employer's share of the contribution rises by 0.5%, while the employee's contribution rises by 1%.

The total CPF contribution for employees aged 65 to 70 will rise from the current 15.5% to 16.5%, an increase of 1.0%. The employer's share of the contribution rises by 0.5%, and both the employee's and employer's shares rise by the same amount.

Below table shows the changes of CPF contribution rates by both Employer and Employee in summary:

Age Range	2016-2021	From 1 Jan 2022	From 1 Jan 2023	From 1 Jan 2024	By ~2030
≤55	37.0%	No Change
>55 – 60	26.0%	28.5%	29.5%	31.0%	37.0%
>60 – 65	16.5%	18.5%	20.5%	22%	26.0%
>65 – 70	12.5%	14.0%	15.5%	16%	16.5%
>70	12.5%	No Change

Aside from the above-mentioned, a total of S$100 million has also been set aside for another two grants over three years. They are the Senior Worker Early Adopter Grant and the Part-Time Re-employment Grant:

Do you know that by implementing a higher internal retirement age and re-employment age ahead of time, and employers committing to provide part-time re-employment opportunities to senior workers, a company can claim up to S$250,000 S$125,000 worth of grants?

* The increase in the internal RA and REA of a minimum of 3 years (from existing statutory RA and REA of 62 and 67, respectively) to qualify for the SWEAG would be applicable only if companies apply for the grant before 5 July 2021.

Senior Worker Early Adopter Grant - (Ceased in Dec 2022)

S$5,000 S$2,500 per Singaporean/PR employee 60 years and above (up to S$250,000 S$125,000) for increasing retirement and re-employment by 3 years.

Part-Time Re-employment Grant (Reinstate after Budget 2023, application start on April 2023) note that further details have not been published and will update once we have news on the grant amount)

S$2,500 per Singaporean/PR employee 60 years and above (up to S$125,000 i.e. 50 senior workers per company) for providing part-time re-employment opportunities to senior workers upon their request.

Senior Worker Early Adopter Grant (Ceased in Dec 2022)

The new Senior Worker Early Adopter Grant provides support of up to S$125,000 for companies willing and able to raise both their retirement age and re-employment age ahead of the national schedule.

The current statutory retirement age is 62, while the re-employment age is 67.

The first scheduled increase will take effect from 1st July 2022, when the respective ages will rise to 63 and 68 and gradually increase to 65 and 70, respectively, by 2030.*

Companies that raise the ages by three or more years above the prevailing statutory periods will receive S$2,500 per senior worker aged 60 and older from the Senior Worker Early Adopter Grant, capped at 50 workers.

Companies will be required to change their human resource policies and employment contracts and communicate the changes to their employees.

** The increase in the internal RA and REA of a minimum of 3 years (from existing statutory RA and REA of 62 and 67, respectively) to qualify for the SWEAG would be applicable only if companies apply for the grant before 5 July 2021.

If the application of the grant is on 5 July 2021 or after, companies would have to raise their internal RA and REA to at least 66 and 71, respectively, i.e., a minimum of 3 years from the new RA and REA of 63 and 68 respectively that would take effect on 1 July 2022. This allows senior workers in these firms to benefit fully from three years of higher internal RA and REA, which is what SWEAG is designed to promote.

Part-Time Re-employment Grant - Reinstate after Budget 2023

In addition, a new Part Time Re-employment Grant has also been introduced to provide up to S$125,000 to companies that commit to providing part-time re-employment opportunities to senior workers who have requested it.

Many employers currently do not have work structures and processes to support such part-time options for senior workers. However, through consultations and surveys done by the Tripartite Workgroup on Older Workers, it was observed that many senior workers would like to reduce their work intensity gradually as they approach retirement. They are also prepared to remain in the workforce if they can undertake part-time work arrangements during re-employment.

As such, the Part-time Re-employment Grant has been introduced from 1st July 2020 onwards to support employers in restructuring their work structures and processes to accommodate more part-time work arrangements for senior workers.

Qualifying companies need to fulfill the below conditions:

(a) To have at least 1 senior worker aged 60 years and above at the point of application and claim

(b) Provide part-time re-employment opportunities to eligible senior workers who request for it

(c) Adopt Tripartite Standard on Age-Friendly Workplace Practices [go.gov.sg/ts-age-friendly]

(d) Adopt Tripartite Standard on Flexible Work Arrangements (FWAs) [go.gov.sg/ts-fwa] *new

(e) Offer FWAs to employees as part of HR policy *new

(f) Implement Structured Career Planning (SCP) for mature and senior workers aged 45 and above as part of HR policy *new

(g) Send one senior management and one HR practitioner each to attend one session of a fully-funded SCP workshop for senior management and HR practitioners respectively conducted by the Singapore National Employers Federation (SNEF) *new

Employers that received the part-time re-employment grant may subsequently be unable to fulfill their commitment to providing a part-time re-employment role to SWs who request it. In these instances, they will be obliged to pay an Employment Assistance Payment to the affected SW.

All employers can apply for New PTRG if they are legally registered or incorporated in Singapore and have not successfully claimed for PTRG before. 1 This includes societies and non-profit organizations such as charities and voluntary welfare organizations. Governmental agencies, statutory boards, and other organs of state are not eligible.

The Tripartite Standard on Age-Friendly Workplace Practices specifies a set of good age management practices that all employers should implement at the workplace.

Employers who adopt this Tripartite Standard treat older workers fairly and provide them with support in areas such as training and workplace health programs.

Purpose of this Tripartite Standard

Many older employees would want to work longer and stay productive if the workplace is conducive and inclusive. Age-friendly workplaces also help employers attract and retain these employees and tap into their wealth of experience.

Practices you need to adopt this Tripartite Standard

Age is not a selection criterion used when advertising for, shortlisting, or selecting job candidates.
A member of senior management is appointed to champion age-friendly workplace practices.
Older employees are trained to perform their jobs effectively.
Workplace health programs for older employees are implemented.
Jobs and workplaces are designed to be age-friendly.
Older employees who are not at the maximum of their salary ranges and have satisfactory work performance are given annual increments, while other employees are also given yearly increments.
Employees are engaged in re-employment issues at least six months before retirement age 62 and for any subsequent extension of the re-employment contract. Employees are offered re-employment contracts at least three months before they are to be re-employed, with a duration of at least one year.

Need help figuring out how and where to apply? Consult our Grant Specialist here.

Frequently Asked Questions:

1) What is Employment Assistance Payment?

If your employer has exhausted all internal re-employment possibilities and is still unable to find you a suitable position, the firm may award you an Employment Assistance Payment (EAP).

The EAP payout is:

- Only as a last resort, following a comprehensive evaluation.

- Designed to tide you over while you look for alternative work.

- A one-time payment of 3.5 months' income, with a minimum of $6,250 and a maximum of $14,750.

Note:

Employees who have been re-employed for at least 30 months since the age of 63 may be eligible for a lesser EAP amount of two months' wages, subject to a minimum of $4,000 and a maximum of $8,500.

Employers are urged to give outplacement services, in addition to the EAP, to help employees locate alternative jobs.

2) Who are the administrators for this grant?

SNEF and E2i

-------------------------------------------------------------------------------------------------------

Not sure whether your company can be qualified for bank loans or alternative lending? Try our A.I assisted loan, and Smart Towkay team will send you a lending report within 24 hours' time. With the lending report, we aggregate and recommend the highest chance of approval be it with BANKS / FINANCIAL INSTITUTIONS or Alternative lenders like Peer to Peer Lenders or even B2B lender!

Got a Question?
WhatsApp Us, Our Friendly Team will get back to you asap :)
Share with us your thoughts by leaving a comment below!

Stay updated with the latest business news and help one another become Smarter Towkays. Subscribe to our Newsletter now!