Budget 2024: S$4,000 SkillsFuture top-up for Singaporeans aged 40 and above

SINGAPORE: Singaporeans aged 40 and above will benefit from a new SkillsFuture programme that includes a S$4,000 (US$2,970) top-up in credits, Deputy Prime Minister Lawrence Wong announced on Friday (Feb 16) in his Budget speech.

WHY IT MATTERS

The national SkillsFuture movement was launched in 2015. Since then, training participation rates have increased from 35 per cent in the year it was started to around 50 per cent in 2022.

Close to 40 per cent of Singaporeans in their 30s have used their base S$500 credits, compared with about 25 per cent of those aged 60 and above.

While Singapore's workforce today ranks highly in terms of skills and technical proficiency, expertise is in constant flux with rapid technological advances, said Mr Wong on Friday.

Robots and machines will not completely replace humans at work, but will change the way expertise is defined and how value is created, he added.

This is why Singapore must help its workers refresh and update their skills, and learn how to use new technologies more effectively, said the Deputy Prime Minister.

With more layoffs expected this year, the National Trade Unions Congress (NTUC) and Singapore National Employers Federation (SNEF) have called for transition support packages for retrenched workers, including in the areas of upskilling and reskilling.

WHAT ARE THE CHANGES ANNOUNCED?

Mr Wong, who is also Finance Minister, then unveiled a slew of updates to the SkillsFuture scheme under a new Level-Up Programme to better support mid-career workers.

S$4,000 top-up

All Singaporeans aged 40 and above will receive a S$4,000 SkillsFuture credit top-up in May.

Younger Singaporeans will receive the same amount when they turn 40.

This S$4,000 will be more targeted in scope, and can only be used for selected training programmes, said Mr Wong.

This includes part-time and full-time diploma, post-diploma and undergraduate programmes, as well as courses for the Progressive Wage Model sectors, he said, noting that the existing basic tier of S$500 in credits can be used for a wide range of courses.

“We want participants taking up these programmes to be assured of better employment outcomes after they have completed their training.”

Subsidies for full-time diplomas

The government will also provide subsidies to all Singaporeans aged 40 and above to pursue another full-time diploma at polytechnics, Institutes of Technical Education and arts institutions from the 2025 academic year, Mr Wong announced.

This means that even after graduating from an institute of higher learning as a young person, Singaporeans can return after they turn 40 to do a full-time diploma – at subsidised rates again.

Monthly training allowances

Singaporeans aged 40 and above who enrol in selected full-time courses will also receive monthly training allowances, announced the Deputy Prime Minister.

The training allowance will be equivalent to 50 per cent of the individual’s average income over the latest available 12-month period, capped at S$3,000 per month.

Each individual can receive up to 24 months of training allowance throughout their lifetime, said Mr Wong. He noted that this can cover the full duration of a SkillsFuture career transition programme and more than half the duration of most qualifications issued by institutes of higher learning.

Singapore will only reap the benefits of this "significant enhancement” to the SkillsFuture initiative if the government, employers, workers and unions lean forward to deepen the culture of lifelong learning and skills mastery, said Mr Wong.

“This must be our shared commitment to one another, to help our fellow Singaporeans develop to their fullest potential, and to have productive and meaningful careers.”