SGUnited Traineeships to end after March intake; improved medical insurance for migrant workers

THE SGUnited Traineeships Programme, which supports training stints of up to 6 months for fresh graduates, will end after its final intake of 2021 graduates in March this year. Existing trainees will be supported until the end of their traineeship stints.

The programme was introduced when the labour market was weak, and now that the economy is recovering, fewer graduates are participating in the scheme, said Senior Minister of State for Manpower Koh Poh Koon in Parliament on Friday (Mar 4) during his ministry's Committee of Supply.

Dr Koh gave an overview of moves to boost employment and protect migrant workers' well-being, including enhanced mandatory medical insurance coverage for the latter.

For mature workers, as earlier announced in Budget 2022, the SGUnited Mid-Career Pathways Programme will be made permanent and training allowances will remain at S$3,800.

"However, with the recovery of the labour market, we will scale back government funding from 90 per cent to 70 per cent, with host organisations co-funding 30 per cent of the allowance to jobseekers," said Dr Koh.

"To encourage host organisations to hire the trainees earlier if they are a good fit, we will allow host organisations to receive the full support quantum if the trainees are hired at least three months into the attachment," he added.

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To further support workers with finding jobs, the 24 SGUnited Jobs and Skills Centres introduced amid the pandemic will also be made permanent.

Three employment agencies have been appointed to support this: Adecco, Charterhouse and Good Job Creations.

As announced in Budget 2022, the Jobs Growth Incentive will be extended to September this year, for firms hiring mature workers who were unemployed for at least 6 months; persons with disabilities; and ex-offenders.

But support levels will be tapered down from April 2022: to 40 per cent for the first S$6,000 of gross monthly wages for the first 6 months, and 20 per cent for the next 6 months. That means up to S$21,600 in salary support for each hire.

Currently, firms which hire mature workers receive a subsidy of 50 per cent for the first S$6,000 of gross monthly wages for up to 12 months.

On migrant workers, Dr Koh said the Ministry of Manpower (MOM) will enhance the coverage of mandatory medical insurance for work permit holders - including migrant domestic workers - and S Pass holders, to better help employers with large unexpected medical bills.

"As medical costs are expected to increase over the years, more employers may end up incurring larger out-of-pocket expenses on their workers' medical bills," said Dr Koh.

Right now, employers are required to purchase at least S$15,000 of medical insurance for their workers. This is sufficient for the bulk of medical bills, but there are still an average of more than 1,000 employers each year who face bills that are larger than S$15,000, said Dr Koh.

A 25 per cent co-payment will be introduced for bills above S$15,000, up to an annual claim limit of at least S$60,000. This will cover more than 99 per cent of Work Permit and S Pass holders' inpatient and day surgery bills. (see amendment note)

There will be a standardised list of baseline allowable exclusions, to give employers greater clarity on the coverage and types of claims they are eligible for.

Premiums will be differentiated for those above 50 years old, and those aged 50 and below, to keep premiums affordable as the majority of migrant workers fall in the latter category.

Insurers will have to reimburse hospitals directly for claims for inpatient and day surgery bills, so that employers no longer have to pay their workers' medical bills upfront and then claim it from insurers later.

The new policy changes will be effected for all new work pass applications by the end of this year.

Employers of existing work permit and S Pass holders will progressively transition onto the new medical insurance policy when they renew their work passes.

Amendment note: An earlier version of this story stated that the new annual claim limit for the mandatory medical insurance for S Pass and Work Permit Holders will be raised to S$60,000. It should be at least S$60,000. The story has been updated to reflect this.