THE Government will extend the Jobs Credit scheme by another six months by giving two more stepped-down payouts in March and June to help firms hold jobs, Prime Minister Lee Hsien Loong announced on Tuesday.
The first extra payment will be based on employees on the payroll in January, at 6 per cent of salary, and the second will be based on next April's payroll, at 3 per cent of the workers' pay. These additional payments will cost the Government $675 million and will be funded from its regular budget, unlike the earlier payments which came from past reserves, said PM Lee at the NTUC ordinary delegates' conference at Orchid Country Club on Tuesday morning.
The $4.5 billion scheme was part of the Resilience Package in Budget 2009, introduced to help ease companies' operating costs and avoid layoffs of workers during the economic downturn. For every resident worker on their Central Provident Fund payrolls, bosses currently get 12 per cent on the first $2,500 of the employee's monthly wage.
Lauding the scheme as 'an extraordinary response to a grave economic crisis,' Mr Lee said it has done its work and held retrenchment and unemployment numbers down. With the economy now having stabilised, he said it is timely to phase out Jobs Credit and adopt more targeted measures to support economic restructuring and enhance productivity.
On the six-month extension, Mr Lee explained: 'Strictly speaking, it is no longer needed. The economy is now recovering, and some companies are hiring again. But if we withdraw the Jobs Credit completely and suddenly, companies may have difficulties adjusting.'
'We have talked to employers and unions. They understand the need to withdraw the Jobs Credit, but hope to be given another few months. We have carefully considered all views and will extend the programme.'
- The Straits Times
Showing posts with label Jobs Credit. Show all posts
Showing posts with label Jobs Credit. Show all posts
Oct 13, 2009
Oct 11, 2009
Restructuring layoffs not abuse
BOSSES who receive Jobs Credit payments are expected to do their utmost to save jobs and to retrench staff only as a last resort.
But they are not abusing the wage subsidy if they must lay off workers as a result of business restructuring, Minister in the Prime Minister's Office Lim Hwee Hua said on Sunday.
She was responding to Bishan neighbourhood committee vice-chairman William Swee, who asked at a residents' dialogue whether employers had any legal or moral obligations under the scheme.
The $4.5 billion scheme aims to help employers hold on to workers during the global economic downturn by defraying their wage bills. For every resident worker on their Central Provident Fund payrolls, bosses get 12 per cent on the first $2,500 of the employee's monthly wage.
Mr Swee, 69, a freelance consultant, claimed that an organisation which received Jobs Credit had laid off five employees, but gave increments to top management and later took in new recruits.
He did not name the organisation.
- The Straits Times
But they are not abusing the wage subsidy if they must lay off workers as a result of business restructuring, Minister in the Prime Minister's Office Lim Hwee Hua said on Sunday.
She was responding to Bishan neighbourhood committee vice-chairman William Swee, who asked at a residents' dialogue whether employers had any legal or moral obligations under the scheme.
The $4.5 billion scheme aims to help employers hold on to workers during the global economic downturn by defraying their wage bills. For every resident worker on their Central Provident Fund payrolls, bosses get 12 per cent on the first $2,500 of the employee's monthly wage.
Mr Swee, 69, a freelance consultant, claimed that an organisation which received Jobs Credit had laid off five employees, but gave increments to top management and later took in new recruits.
He did not name the organisation.
- The Straits Times
Sep 22, 2009
Extension of Jobs Credit?
THE Government will announce by the middle of October whether the Jobs Credit scheme will be extended, and if so, in what form.
This early decision will be welcomed by the business community as many companies are already in the process of firming up their business plans and budgets for next year.
The Jobs Credit scheme was introduced in this year's Budget to help companies hold on to their workers amid one of Singapore's worst recessions since independence.
Under the scheme, the Government helps employers defray part of the wage bill of local workers. It gives employers funds for every resident worker on their Central Provident Fund payroll - 12 per cent on the first $2,500 of each month's wages for each employee.
There are four payouts in the year, with the last payment made in December.
Said the Finance Ministry noted in a statement on Tuesday: 'As stated in the 2009 Budget Speech, the Government would review whether it is necessary to extend the Jobs Credit scheme depending on the state of economy.
'The review is currently ongoing, taking into account all factors including the latest economic and employment outlook for the coming year.'
'The Government will announce whether the Jobs Credit scheme will be extended, and if so in what form, by mid-October.'
In its statement, the ministry also said that more than 100,000 employers, hiring about 1.4 million local workers, will receive $890 million from the third payment of Jobs Credit on September 30.
Eligible employers will receive a notification letter by Thursday from the Inland Revenue Authority of Singapore informing them of the amount of Jobs Credit they will receive in the third payment.
- The Straits Times
This early decision will be welcomed by the business community as many companies are already in the process of firming up their business plans and budgets for next year.
The Jobs Credit scheme was introduced in this year's Budget to help companies hold on to their workers amid one of Singapore's worst recessions since independence.
Under the scheme, the Government helps employers defray part of the wage bill of local workers. It gives employers funds for every resident worker on their Central Provident Fund payroll - 12 per cent on the first $2,500 of each month's wages for each employee.
There are four payouts in the year, with the last payment made in December.
Said the Finance Ministry noted in a statement on Tuesday: 'As stated in the 2009 Budget Speech, the Government would review whether it is necessary to extend the Jobs Credit scheme depending on the state of economy.
'The review is currently ongoing, taking into account all factors including the latest economic and employment outlook for the coming year.'
'The Government will announce whether the Jobs Credit scheme will be extended, and if so in what form, by mid-October.'
In its statement, the ministry also said that more than 100,000 employers, hiring about 1.4 million local workers, will receive $890 million from the third payment of Jobs Credit on September 30.
Eligible employers will receive a notification letter by Thursday from the Inland Revenue Authority of Singapore informing them of the amount of Jobs Credit they will receive in the third payment.
- The Straits Times
Apr 28, 2009
Job losses could be worse if not for tripartite partners, says Lim Swee Say
The job situation in Singapore could have been worse given the severity of the global economic downturn, if not for the concerted efforts of the government, businesses and labour movement, said NTUC's secretary-general, Lim Swee Say.
Making the point in his May Day message to workers on Tuesday, Mr Lim said measures like the Skills Programme for Upgrading and Resilience (SPUR) and Jobs Credit have made a difference in saving jobs.
He said: "Many companies, (when) faced with a situation of excess manpower, they either retrench the workers or find ways to keep the workers at the minimum costs. In the case of SPUR and Job Credits, they have come in very handy, enabling many companies either to defer retrenchment or reduce retrenchment.
"We have come across companies asking for more, but at the same time we also have companies which have taken concrete action to try to find ways to break even at a much lower level of revenue, and yet at the same time working in collaboration to take full advantage of the various schemes offered by the economic agencies.
"(But) there are companies which will keep asking for more, (regardless of) whether the government or the union can do more to support them. Our message to them is: as we go through this downturn, the pain will be so severe that it is not realistic to hope for a painless solution.
"What the government and labour movement can do is to lighten the pain and share the load. And what we need is for the management to take the lead as well and play their part to find ways to cut wage and non-wage costs."
In the unionised sector, retrenchments were reaching as high as 900 per week during the Lunar New Year period.
However, the number has now dropped to an average of less than 300 per week, averting a potentially explosive situation of massive retrenchment in Singapore, said the Labour Movement chief.
"Everyday when I wake up, the first thing I look at is: what is the level of retrenchment, how many more jobs have we lost?" said Mr Lim. "The second thing I worry (about) is whether every job lost translates to another unemployed worker."
Mr Lim warned that the battle against the downturn is far from over. He said the retrenchments in the first quarter of this year would not be the only wave of job losses, but just the first.
Therefore, it was important for the tripartite partners to gear up for tougher challenges ahead of them, and not be disheartened.
Besides tackling the immediate challenges of cutting costs and saving jobs, the NTUC chief said the labour movement has got to be ready for the upturn and hence the need to also ensure that workers are ready to take on new jobs and new openings in emerging markets and new growth areas.
Mr Lim said: "Our key challenge today is not one of unemployment challenge, but rather the structural unemployment challenge. There are still jobs today: e2i (the employment and employability institute) today has got about 19,000 jobs, the job seekers about 9,500. And yet overnight, we have not been able to match because of a mismatch of skills, because of expectations."
He added that the tripartite partners are addressing this problem with SPUR.
At the same time, Mr Lim added that it is also important for the country to keep building new capabilities, upgrade service quality and restructure businesses especially at the time of a downturn, so that it can be prepared to take full advantage when the upturn comes.
- Channel News Asia
Making the point in his May Day message to workers on Tuesday, Mr Lim said measures like the Skills Programme for Upgrading and Resilience (SPUR) and Jobs Credit have made a difference in saving jobs.
He said: "Many companies, (when) faced with a situation of excess manpower, they either retrench the workers or find ways to keep the workers at the minimum costs. In the case of SPUR and Job Credits, they have come in very handy, enabling many companies either to defer retrenchment or reduce retrenchment.
"We have come across companies asking for more, but at the same time we also have companies which have taken concrete action to try to find ways to break even at a much lower level of revenue, and yet at the same time working in collaboration to take full advantage of the various schemes offered by the economic agencies.
"(But) there are companies which will keep asking for more, (regardless of) whether the government or the union can do more to support them. Our message to them is: as we go through this downturn, the pain will be so severe that it is not realistic to hope for a painless solution.
"What the government and labour movement can do is to lighten the pain and share the load. And what we need is for the management to take the lead as well and play their part to find ways to cut wage and non-wage costs."
In the unionised sector, retrenchments were reaching as high as 900 per week during the Lunar New Year period.
However, the number has now dropped to an average of less than 300 per week, averting a potentially explosive situation of massive retrenchment in Singapore, said the Labour Movement chief.
"Everyday when I wake up, the first thing I look at is: what is the level of retrenchment, how many more jobs have we lost?" said Mr Lim. "The second thing I worry (about) is whether every job lost translates to another unemployed worker."
Mr Lim warned that the battle against the downturn is far from over. He said the retrenchments in the first quarter of this year would not be the only wave of job losses, but just the first.
Therefore, it was important for the tripartite partners to gear up for tougher challenges ahead of them, and not be disheartened.
Besides tackling the immediate challenges of cutting costs and saving jobs, the NTUC chief said the labour movement has got to be ready for the upturn and hence the need to also ensure that workers are ready to take on new jobs and new openings in emerging markets and new growth areas.
Mr Lim said: "Our key challenge today is not one of unemployment challenge, but rather the structural unemployment challenge. There are still jobs today: e2i (the employment and employability institute) today has got about 19,000 jobs, the job seekers about 9,500. And yet overnight, we have not been able to match because of a mismatch of skills, because of expectations."
He added that the tripartite partners are addressing this problem with SPUR.
At the same time, Mr Lim added that it is also important for the country to keep building new capabilities, upgrade service quality and restructure businesses especially at the time of a downturn, so that it can be prepared to take full advantage when the upturn comes.
- Channel News Asia
Mar 3, 2009
A 'strategic' move
LABOUR chief Lim Swee Say on Tuesday rebutted criticisms that the Government should have cut the employers' Central Provident Fund contribution rate instead of having the Jobs Credit wage support scheme as a way to save jobs.
The latter would achieve more than a CPF cut, he said, and it would also strengthen the trust that now exists among the tripartite partners - the Government, workers, and employers.
This was because the labour movement, together with the Government, spent the past 20 years urging workers and companies to move towards a flexible wage system in which some components are variable.
Cutting the employers' CPF contribution rate now before trying other cost-saving measures would only break the tripartite trust, he said.
He defended, in particular, the Government decision to draw on past reserves to introduce the $4.5 billion Jobs Credit scheme, as a 'strategic' move.
The scheme pays employers 12 per cent of the first $2,500 of each month's wages for each resident worker. This is equivalent to a 9 percentage point CPF cut.
Mr Lim, who is Minister in the Prime Minister's Office, made these comments on Tuesday at a conference for civil servants, in the wake of former permanent secretary Ngiam Tong Dow's criticisms of the decision not to cut CPF in this downturn.
The Government had made the cut in the 1985 recession, a move which he described as 'strategic' in a talk to African policymakers at the S. Rajaratnam School of International Studies and condensed in an article published in this newspaper last Saturday.
By comparison, Jobs Credit was a 'tactical' one to prevent massive unemployment, he said. It simply gave uncompetitive enterprises a short reprieve.
Without referring to Mr Ngiam by name, Mr Lim said: 'There's a school of thought...that CPF cut is a strategic move. Jobs Credit is a tactical move. I disagree.'
- The Strait Times
The latter would achieve more than a CPF cut, he said, and it would also strengthen the trust that now exists among the tripartite partners - the Government, workers, and employers.
This was because the labour movement, together with the Government, spent the past 20 years urging workers and companies to move towards a flexible wage system in which some components are variable.
Cutting the employers' CPF contribution rate now before trying other cost-saving measures would only break the tripartite trust, he said.
He defended, in particular, the Government decision to draw on past reserves to introduce the $4.5 billion Jobs Credit scheme, as a 'strategic' move.
The scheme pays employers 12 per cent of the first $2,500 of each month's wages for each resident worker. This is equivalent to a 9 percentage point CPF cut.
Mr Lim, who is Minister in the Prime Minister's Office, made these comments on Tuesday at a conference for civil servants, in the wake of former permanent secretary Ngiam Tong Dow's criticisms of the decision not to cut CPF in this downturn.
The Government had made the cut in the 1985 recession, a move which he described as 'strategic' in a talk to African policymakers at the S. Rajaratnam School of International Studies and condensed in an article published in this newspaper last Saturday.
By comparison, Jobs Credit was a 'tactical' one to prevent massive unemployment, he said. It simply gave uncompetitive enterprises a short reprieve.
Without referring to Mr Ngiam by name, Mr Lim said: 'There's a school of thought...that CPF cut is a strategic move. Jobs Credit is a tactical move. I disagree.'
- The Strait Times
Feb 13, 2009
Jobs Credit and Spur already having effect to help workers, firms weather downturn
FOR more than a week, the announcements kept coming as the ministries rolled out their plans and proposals for this year and the years ahead. On Friday, it was slightly different.
Parliament came full circle as the debate on the Budget and Government expenditure ended on the same note on which it started: Jobs.
But where Members of Parliament had at first engaged the Government on the broad strategies of its $20.5-billion Resilience Package, this time they cast their eyes on the simple details of those measures to be undertaken by the Ministry of Manpower (MOM).
For example, whether more can be done for vulnerable groups such as contract workers.
With many of MOM’s measures already unveiled in the House, the focus was on ensuring that as few people as possible fall through the cracks on the job front.
According to Acting Manpower Minister Gan Kim Yong, the $4.5-billion Jobs Credit and the $650-million Skills Programme for Upgrading and Resilience (Spur) are already having an impact.
For instance, MediaCorp was an example of a “responsible employer” using comprehensive measures to control costs and save jobs, such as shorter work weeks and leveraging on Spur, while retailer Charles and Keith was using Jobs Credit and Spur to expand operations by 25 workers.
And Spur has seen more than 20,000 workers committed for training two months after its launch, with nearly 13,000 doing so through their employers and the remainder signing up themselves, said Mr Gan, who replied to questions by MPs Lily Neo (Jalan Besar) and Low Thia Khiang (Hougang) on the effectiveness of job placements and whether the Government is monitoring such efforts.
“Unlike some countries which provide extensive unemployment welfare to displaced workers, our measures help employers preserve jobs to minimise retrenchments and unemployment. This will benefit workers,” he said.
But to help older low-wage workers who might see a drop in income during the downturn, a one-off Workfare Special Payment of up to $1,200 will be paid over three tranches for work done last year and this year.
Recognising that some low-wage workers may experience less regular employment this year, a worker only need work two months out of any six-month period to receive half of that payment instead of three months.
These were some of the details released by MOM, the last ministry for the Committee of Supply debate, following the practice of going by seniority of minister.
Other initiatives included a panel co-led by MOM and the Trade and Industry Ministry to look into labour productivity and develop strategies for each industry, as well as a Workplace Safety and Health 2018 national plan to be unveiled in April to develop industry-specific roadmaps and targets.
Mr Gan also addressed MPs’ concerns about contract workers, which increasingly include professionals, managers, executives and technicians (PMETs), pointed out MP Jessica Tan. Asked by Nominated MP Siew Kum Hong what could be done to ensure PMET contract workers also benefited from schemes such as Jobs Credit, Mr Gan said this was a commercial arrangement between job seekers and employment agencies who employed them.
“It’s up to the customer to negotiate with the agency for a lower fee, because the benefit has gone to the agency ... overall the Jobs Credit will make Singaporeans workers cheaper and these benefits will flow through to the employers, and whether they pass it on is an arrangement between (them).”
While a lot of effort will go into managing job losses, MOM will also focus on ensuring that Singapore emerges from the recession with a competitive workforce.
Three Continuing Education and Training (CET) centres will be appointed National CET Institutes to spearhead objectives such as the adoption of innovative methods of adult training and offer quick responses to skills gaps and shortages.
MPs such as Dr Lim Wee Kiak felt there was need to streamline services to minimise confusion. In response, Mr Gan said Singaporeans should make Community Development Councils, which are linked to agencies like the Workforce Development Agency, their first port-of-call.
- TODAY newspaper
Parliament came full circle as the debate on the Budget and Government expenditure ended on the same note on which it started: Jobs.
But where Members of Parliament had at first engaged the Government on the broad strategies of its $20.5-billion Resilience Package, this time they cast their eyes on the simple details of those measures to be undertaken by the Ministry of Manpower (MOM).
For example, whether more can be done for vulnerable groups such as contract workers.
With many of MOM’s measures already unveiled in the House, the focus was on ensuring that as few people as possible fall through the cracks on the job front.
According to Acting Manpower Minister Gan Kim Yong, the $4.5-billion Jobs Credit and the $650-million Skills Programme for Upgrading and Resilience (Spur) are already having an impact.
For instance, MediaCorp was an example of a “responsible employer” using comprehensive measures to control costs and save jobs, such as shorter work weeks and leveraging on Spur, while retailer Charles and Keith was using Jobs Credit and Spur to expand operations by 25 workers.
And Spur has seen more than 20,000 workers committed for training two months after its launch, with nearly 13,000 doing so through their employers and the remainder signing up themselves, said Mr Gan, who replied to questions by MPs Lily Neo (Jalan Besar) and Low Thia Khiang (Hougang) on the effectiveness of job placements and whether the Government is monitoring such efforts.
“Unlike some countries which provide extensive unemployment welfare to displaced workers, our measures help employers preserve jobs to minimise retrenchments and unemployment. This will benefit workers,” he said.
But to help older low-wage workers who might see a drop in income during the downturn, a one-off Workfare Special Payment of up to $1,200 will be paid over three tranches for work done last year and this year.
Recognising that some low-wage workers may experience less regular employment this year, a worker only need work two months out of any six-month period to receive half of that payment instead of three months.
These were some of the details released by MOM, the last ministry for the Committee of Supply debate, following the practice of going by seniority of minister.
Other initiatives included a panel co-led by MOM and the Trade and Industry Ministry to look into labour productivity and develop strategies for each industry, as well as a Workplace Safety and Health 2018 national plan to be unveiled in April to develop industry-specific roadmaps and targets.
Mr Gan also addressed MPs’ concerns about contract workers, which increasingly include professionals, managers, executives and technicians (PMETs), pointed out MP Jessica Tan. Asked by Nominated MP Siew Kum Hong what could be done to ensure PMET contract workers also benefited from schemes such as Jobs Credit, Mr Gan said this was a commercial arrangement between job seekers and employment agencies who employed them.
“It’s up to the customer to negotiate with the agency for a lower fee, because the benefit has gone to the agency ... overall the Jobs Credit will make Singaporeans workers cheaper and these benefits will flow through to the employers, and whether they pass it on is an arrangement between (them).”
While a lot of effort will go into managing job losses, MOM will also focus on ensuring that Singapore emerges from the recession with a competitive workforce.
Three Continuing Education and Training (CET) centres will be appointed National CET Institutes to spearhead objectives such as the adoption of innovative methods of adult training and offer quick responses to skills gaps and shortages.
MPs such as Dr Lim Wee Kiak felt there was need to streamline services to minimise confusion. In response, Mr Gan said Singaporeans should make Community Development Councils, which are linked to agencies like the Workforce Development Agency, their first port-of-call.
- TODAY newspaper
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