New support scheme to help retrenched workers to be announced by end of 2024: MOM

SINGAPORE - Singaporeans who find themselves involuntarily unemployed will be able to receive more support under a new scheme due to be unveiled by the year end.

Manpower Minister Tan See Leng pointed to the scheme in his May Day message on April 27, noting: "The pace of change in the economy is accelerating, and we know that more workers will likely be thrown curveballs.

"We have heard and heeded the call to further support our workers who find themselves displaced through no fault of their own."

The re-employment support scheme, which was announced by Prime Minister Lee Hsien Loong in his National Day Rally speech in 2023, will help retrenched workers get back on their feet.

PM Lee said then that the Government will provide individuals with temporary financial support so that they can focus on upgrading their skills for a better long-term job. "It will be a temporary safety net to help you meet immediate needs to free you to upskill and train, as you prepare yourself for a good long-term job," he added.

Dr Tan told Parliament on March 4 that the Government was "close to finalising the scheme parameters", and assured the House that it has "indeed looked at best practices around the world".

Dr Tan's May Day message also outlined the ministry's key priorities for the coming year.

He said: "As a small and open economy, we will be affected by disruptions in an uncertain global environment, but we are bolstered by the trust and confidence we have in one another.

"Let us prepare our workers to be ready for jobs of the future, and promote fair, progressive and safe workplaces that benefit both workers and employers.

"By helping our workers stay relevant and our businesses stay competitive, we enlarge our economic pie so that there is more for everyone."

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The Ministry of Manpower wants to encourage workers to take up training programmes to improve their skills.

One initiative involves enhancing Workforce Singapore's Career Conversion Programme by increasing the cap on salary support and monthly training allowance for attachments.

It will also launch the Overseas Markets Immersion Programme to support employers in sending local workers overseas for new market exposure and reskilling. This will allow workers with little to no overseas market experience to gain exposure through structured on-the-job and in-market training in global roles.

Dr Tan also reiterated the Government's commitment to ensuring fair and merit-based workplace practices.

He said: "We will continue to work with tripartite partners to shape workplace norms in tandem with the upcoming Workplace Fairness Legislation that will strengthen protections for workers against workplace discrimination.

"We also launched the Tripartite Guidelines on Flexible Work Arrangement (FWA) Requests, which reflects our shared commitment towards making FWAs effective and sustainable for both workers and businesses."

Dr Tan said that tripartite partners - the ministry, unions and employers - will step up support for Singapore's growing older population: "We will empower senior workers to continue working if they wish, and are able to do so, by progressively increasing the retirement and re-employment ages to 65 and 70 by 2030.

"CPF contribution rates for senior workers will also be raised so that they can enter retirement with more confidence."

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This article was first published in The Straits Times. Permission required for reproduction.