MOM COS-in-brief 2014
Making Our Economy Work for All Singaporeans
Making our economy work for every Singaporean is at the core of what we need to do. Better jobs and higher incomes for Singaporeans are at the centre of our mission at MOM. Together, we will ensure that Singapore remains a Nation of Opportunities, for all Singaporeans.
Acting Minister for Manpower Tan Chuan-Jin
“
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MOM's Objectives
Creating better jobs and raising income for Singaporeans through upgrading our workers and supporting restructuring
Making workplaces better and safer
Achieving inclusive growth and retirement adequacy
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Employees
GovernmentEm
ploye
rs
Raise Quality of Workforce • LongerPeriodof
EmploymentforConstruction,MarineandProcesssectors
• Market-BasedSkillsRecognitionFrameworkforConstructionsector
• HigherlevyforLowerSkilledorR2ConstructionWorkPermitHolders
Create Better Workplaces • Payattentiontocareer
andwageprogression
• Designflexibleworkarrangements
• Supportemployeestoattendtraining
Seize Training Opportunities • Upskillandupgradetoaddvalue
... Through a Strong Spirit of Tripartism
Encouragefirmstorecruitandretainskilledforeignworkers
Asmallerpoolofhigherskilledforeignworkers
EmpowerSingaporeanswiththeskillsandtrainingtheyneed
Abletotakeonbetterjobsandearnhigherwages
Above all, we will continue to focus on...Raising the Quality of Our Local and Foreign Workforce
04 | MOM COS-IN-BRIEF 2014
Government’s Commitment to Strengthen Continuing Education and Training (CET) and Lifelong Learning
Major Review of CET Masterplan• Greateremphasisandsupportforself-initiatedupgradingtoenhancecareer-resilienceofworkforce
• HelpcompaniestomoreeffectivelyintegrateCETintobusinessstrategyandperformancemanagement
• ImproveresponsivenessofCETsystemtomeetevolvingskillsneedsofgrowthsectors
Continued Drive for Lifelong Learning • $500milliontop-uptotheLifelongLearningEndowmentFund,nowtotalling$4.6billion
Supporting Individuals
Max Talent
• 740PMEsplacedacross706SMEsasatDecember2013sinceinceptionofprogrammeinApril2012
CaliberLink
• Assistedmorethan5,000PMEs;provideddedicatedcareercoachingservicestoabout2,000PMEsandassisted750intoemploymentsincelaunchinMarch2011
Supporting Companies
Progress Made in Training Efforts since 2008 CET Masterplan
CET – Key Statistics at a Glance
No.ofCETCentres 19 51
No.ofworkerstrained 230,000 ~1million
No.ofAcademicCETprogrammes ~40 >160
Overall 2008 2013
WorkPro
• Morethan700companiesonWorkProasatDecember2013,sinceinceptionofprogrammeinMarch2013
Enterprise Training Support (ETS)
• Benefitted68companies(70%SMEs)andabout12,000localworkerssincelaunchinJuly2013
• Furtherenhancementtosupporte-learningfrom1April2014
WDA Advisory Services at 5 One-stop SMEs Centres
• ProvideSMEswithone-to-oneadviceontrainingadvisoryandmanpowerdevelopment
• ProgrammeadvisorsonhandtolistentoSMEs'concernsandadvisethemaboutrelevantprogrammeswhichcanaddresstheirneeds
CreatingBetterJobsandRaisingIncomethroughCET
Percentageoftraineesthatwerebetterabletoapplytheirskills 93% 97%
Percentageofemployersthatreportedproductivityimprovements 62% 77%
Overall 2009 2013
From2008to2010,lower-wageworkerswithWSQStatementsofAttainment(orSOAsforshort)receivedwageincrementsofbetween2.6%and4.6%comparedtothosewithoutSOAs.
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300
700
750
1,050
Market-Based Skills Recognition Framework for Construction SectorMOMhasintroducedanadditionalpathwaycalledtheMarket-Based Skills Recognition FrameworkforConstructionWorkPermitHolders(WPHs)toupgradefrom‘Basic Skilled’ (R2) to ‘Higher Skilled’ (R1).
Another pathway for
me to upgrade!
“”
1 The maximum POE for R1 PRC Manufacturing and Services WPHs will remain at 18 years. The maximum POE for R2 NTS and PRC WPHs for all sectors remains unchanged at 10 years.2 NTS include Bangladesh, India, Republic of the Union of Myanmar, Philippines, Sri Lanka and Thailand.
Longer Period of Employment for Construction, Marine & Process WorkersFrom1 May 2014,themaximumperiodofemployment1forR1Construction,MarineandProcessWPHsfromNon-TraditionalSources2andthePeople’sRepublicofChina(PRC)willberaisedfrom18 to 22 years.
Thisallowsfirmstotapontheirpooloftrainedandexperiencedworkersforlongerperiods.
Toencourageemployerstoretainhigherskilledworkers,theforeignworkerlevyrateforR2MYEConstructionWPHswillbeincreasedfrom$600to$700from1 July 2016.
Higher Levies for R2 Construction Man-Year Entitlements (MYE) Workers
Foreign Worker Levies for Work Permit Holders in Construction Sector till July 2016
R1MYE
R2MYE
R1MYE-Waiver
R2MYE-Waiver
NEW
Measures to Raise the Quality and Productivity of the Foreign Workforce
SupportingRestructuring
300
450
600
750
1July2013
300
550
700
950
1July2014
300
600
750
1,050
1July2015 1July2016
No levy hike for higher skilled
workers and I can retain them for a
longer period.
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Existing Skills Framework
R2ConstructionWPHsmustmeettheserequirementsbeforetheyareeligiblefortheR1status:
New Market-Based Skills Recognition Framework from 1 August 2014
R2ConstructionWorkPermitHolderscanalsoupgradeR1statusifthey:
Earnafixedmonthlysalaryof$1,600or
more+
Haveatleastsixyears’Constructionexperience
inSingapore
PossessCoreTrade/Multi-skillingcertification
Haveatleastfouryears’Constructionexperience
inSingapore+
2Pathway
1Pathway
Upskill Workers
Retain Skilled Workers
Raise Productivity
Hire Better Workers
06 | MOM COS-IN-BRIEF 2014
What is the Progressive Wage Model (PWM)?
AchievingInclusiveGrowth
Implementation of Mandatory PWM in select Low-wage Sectors
The introduction of the PWM in the cleaning, security and landscape sectors will impact more than 80,000 local low-wage workers.
Cleaning
CleaningcompanieshaveuptoSeptember2014toensurethattheirresidentcleanersdeployedundernewcleaningcontractsarepaidbasicwagesinlinewiththePWMrecommendedbytheTripartiteClusterforCleaners,orriskincurringpenaltiesincludinghavingtheirlicencesrevoked.
Landscaping
• Cheapsourcingisprevalentinthelandscapesectorandbasicwagesforresidentworkershavebeenlowandstagnantforseveralyears
• Toimprovethewagesandemploymentconditionsoflandscapeworkers,MOMwillsetupaTripartiteClusterfortheLandscapeIndustry(TCL)tostudytheneedforaPWMforthesector
Security
• TheSecurityTripartiteClusteriscurrentlydevelopingthePWMforthesecuritysector
•Whenready,theGovernmentwillapplythePWMrequirementtotheexistinglicensingregimeforthesecuritysector
NEW
✔ ThePWMputsinplaceclearwage-skillandcareerprogressionpathwaysforworkers
✔ ProductivityimprovementsandskillstrainingarekeyfeaturesofthePWM
✔ MandatingthePWMthroughregulationisatargetedapproachthattheGovernmenthasadoptedforselectlow-wagesectorswherecheap-sourcingisprevalentandwagesarestagnant
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All workersEmployerconratestotheMAwillincreaseby1%-point
Workers aged 50 to 55• Employer conratestotheSAwillincreaseby1%-point
•EmployeeconratestotheOAwillincreaseby0.5%-point
Workers aged 55 to 65Employer conratestotheSAwillincreaseby0.5%-point
Medisave Account (MA): Primarilyforhealthcareneeds
Ordinary Account (OA):Primarilyforretirementandhousingneeds
Special Account (SA): Primarilyforretirementneeds
Temporary Employment Credit (TEC)
• ToalleviatetheriseinbusinesscostswiththeincreaseinMedisavecontributionrates
• Employerswillreceiveaone-yearoffsetof0.5%ofwagesforSingaporeanandPermanentResidentworkersuptotheCPFsalaryceilingof$5,000
Special Employment Credit (SEC) • GiventoemployersofSingaporeansagedabove50yearsoldandearningupto$4,000/month
• Willbefurtherenhancedbyupto0.5%ofwagesforoneyear
• ThiswillincreasetheSECquantumtoupto8.5%ofaworker'smonthlywage
I can save more for
healthcare and retirement
needs.
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Changes to Employees' CPF Contribution Rates from 1 January 2015
AchievingRetirementAdequacy
Support for Employers from 1 January 2015
Increase in CPF Contribution Rates
1988 - 2006
CPFcontributionrates(conrates)forolderworkerswereloweredinthepasttoenhancetheiremployability
Conratesforolderworkersaged50to65wereraisedinviewofrisingemploymentratesofolderworkersandprogressinwagereforms.Governmentcommittedtoequalisingconratesforworkersaged50to55withyoungerworkersinthelongerterm.
2012 BudgetDPMTharmanannouncedthatGovernmentwillraiseconratestotheMedisaveAccountandtakethenextstepinraisingconratesforolderworkers
2014 Budget
2013 National Day Rally
PMannouncedthatSingaporeanswouldneedtosavemoreforhealthcareashealthcareexpensesriseandMedisaveuseisextendedtomoretypesofoutpatienttreatment
ENHANCED!
NEW!
Workplace Safety and Health (WSH) 2018 Roadmap
MakingWorkplacesBetterandSafer
Enhanced TAFEP •TheTripartiteAllianceforFairEmploymentPractices(TAFEP)willexpandtopromoteprogressiveemploymentpracticeswhileretainingitsoriginalfocusonpromotingfairemployment
•TheexpandedTAFEPwillbecomeaone-stopcentretoprovideadviceandassistanceonfairandprogressiveemploymentpracticestoemployers
TAFEP will help my company to
adopt progressive employment
practices.
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I have work-life harmony!“
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Tripartite Advisory on Flexible Work Arrangements •MOMandourtripartitepartnersaredevelopinga“TripartiteAdvisoryonFlexibleWorkArrangements”tohelpemployersandemployeesunderstandtheirrolesinimplementingflexibleworkarrangements
•Theadvisoryisexpectedtobereadyinthesecondhalfof2014
Strengthen Capabilities of WSH Professionals and Training Providers
-Programmesandcompetency roadmapsforWSHprofessionals invarietyoffields
Enhance Risk Management Framework
-Focusonupstreamriskcontrol measuresandpractices
Integrate Workplace Safety and Health
-CollaboratewithMOHand HealthPromotionBoardto holisticallymanageemployees' safety,occupationalhealthand wellbeingatwork
Nurture a WSH Culture & Vision Zero Mindset
-"Allworkinjuriesandillhealth arepreventable"
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