SkillsFuture funding revised to focus on manpower development outcomes

TO ENSURE that more SkillsFuture Singapore (SSG) funds are directed towards training that delivers on strong employment outcomes, three key revisions will be implemented progressively next year, said SSG chief executive Ong Tze Ch'in on Thursday.

Firstly, subsidies for SSG-funded courses will be adjusted so that they are the highest for training that delivers the strongest manpower outcomes, such as training tied to job placements. This starts in Jan 1, 2022.

Subsidies will go up to 50 per cent for certifiable courses approved by SSG; fees will be offset by up to 70 per cent for courses offered by SSG-appointed Continuing Education and Training centres.

Baseline course fees will be simplified and streamlined across courses for professionals, managers, executives and technicians (PMETs) and those for non-PMETs. Individuals who qualify for enhanced subsidies could receive course fee subsidies of up to 90 per cent if the courses deliver the strongest manpower outcomes.

The second key revision will see absentee payroll (AP) funding revised to a "more sustainable" rate from Jan 1 next year, after the conclusion of the extension of the Enhanced Training Support Package (ETSP). The revised AP rate will be fixed at S$4.50 per hour, with a S$100,000 cap on the maximum AP funding a company can claim each year. This, said SSG, will ensure that benefits are more evently distributed across companies. 

It was previously announced that the ETSP would be extended to Dec 31 this year, to allow companies to send workers for training. Under the existing ETSP, companies are eligible for enhanced AP funding at 80 per cent of the hourly basic salary, capped at S$7.50 per hour when they send their staff for eligible courses.

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The third major revision is the phasing out of the SkillsFuture Qualification Award, which was introduced to encourage take-up of full qualifications under the Singapore Workforce Skills Qualification (WSQ). Instead, industry-relevant bite-sized training programmes will be encouraged.

Eligible Singaporean trainees have up to Dec 31, 2022 to attain the necessary WSQ qualifications and up to March 31, 2023 to submit their applications for the award. After these dates, Singaporeans can continue to make use of their SkillsFuture Credit to take up relevant courses, including WSQ full qualifications.

All Singaporeans aged 25 and above would have received an opening credit of S$500, with a one-off top-up of S$500 last year and an additional S$500 top-up for citizens aged 40 to 60 as at Dec 31, 2020.

"These measures also take into account the many newer initiatives and schemes that SSG has introduced under the Next Bound of SkillsFuture," Mr Ong said. "SSG remains committed to supporting Singaporeans in their life-long learning journey."

Thursday's announcement by SSG comes on the heels of the Ministry of Education's announcement of a review and reallocation of resources in March.