salary support

Salary Support Grants in Singapore 2023 – Things You Need To Know Before Applying

Singapore has always shown itself to be a resilient economy that is able to continue its economic growth amid crisis. The COVID-19 pandemic had a devastating effect not only in the healthcare sector but on economies worldwide. Singapore was no exception.

Where on the one hand, the Singapore Government and healthcare authorities were grappling with the rising cases and doing all they could to restrict cases to a minimum, on the other hand they were faced with the daunting task of keeping the economy afloat amid the rising unemployment rate and economical impact of the pandemic.

The Government then took several initiatives to handle the situation and devised various programs and salary support grants that could help businesses to hire and retain their employees by offering them financial grants to improve or renew their skills.

So what are these programs and income support schemes? Who can apply for them and how? Read on to find answers to these questions and much more information related to them.

Salary Support Schemes

In the start of 2020 when COVID-19 started to spread across the world, Singapore took preemptive steps to help companies with human resource by retaining their employees and expand their skilled workforce. These schemes gave Singapore businesses the opportunity to increase their workforce at a lower cost and recover from the devastating economic crunch.

If you are looking to expand your business overseas, you might be interested in MRA Grants.

These different types of salary support schemes are further discussed below:

PCP Salary Support

The PCP or Professional Conversion Programme is part of the Workforce Singapore (WSG)’s Adapt and Grow Initiative whose goal is to provide individuals with help and assistance in acquiring new skills. These individuals are included in the PMET category that comprises professionals, managers, executives, and technicians. Through this PCP programme, PMETs are able to acquire new skills like IT and digital skills to switch to a new job role in their career or progress in their current company by undergoing skills conversion.

There are more than 100 different PCP salary support grants that were offered so that local PMETs could be assisted in career conversion. These grants were offered under six main sectors that include:

  • Manufacturing
  • Built environment
  • Trade and connectivity
  • Essential domestic services
  • Modern services
  • Lifestyle

The PCP provides different salary grants to individuals aged below 40 and individuals aged above 40 years. The PCP salary support grant for individuals below 40 years of age is up to 70% with a maximum cap of $4,000 a month. For individuals above 40 years of age, the PCP income support is up to 90% with a maximum cap of $6,000. Moreover, the PCP also provides companies with course fees for their employees. For below 40 years, up to 70% course fee is provided to the companies and up to 90% course fees for employees above 40 years.

The PCP training programmes had different durations ranging from 3 months to 2 years depending on specific programmes and jobs.  In 2021, the PCP programme was changed to the Career Conversion Programme (CCP) that includes:

  • CCP for SME Executives – Under the CCP for SME executives, newly hired PMETs are offered training to acquire necessary skills in a variety of functional areas that will allow them to acclimatize with an SME environment. The CCP for SME executives will end on 31 December 2023.
  • CCP for Professional Executives – This programme supports mid-level PMETs and helps them acquire new skills in roles such as business administration, sales and marketing, business development, bookkeeping and other similar executive roles. PMETs learn at least one digital skill in this programme.
  • CCP for Human Capital Professionals – The CCP for Human Capital Professionals targets those PMETs who wish to convert to human resource job roles. This program also aims at providing existing HR personnel with training for new skills acquisition. Companies availing this programme can also receive corresponding salary support grants. This programme will end on 31 December 2023.
  • CCP for Built Environment Professionals – This programme is targeted towards those newly-hired PMETs who belong to the Built Environment industry. Through rigorous foundational training and e-learning, the participants are equipped to continue in their new job roles. Companies participating in this programme can expect to receive salary support grants as well as course fee. This problem will end on 30 September 2023. 
  • CCP for Sustainability Professionals (EV Specialists) – This programme aims to provide mid-career PMETs with the required skills to join a career in EV maintenance and repair. Participant companies of this programme also receive salary support grants from the Government. The programme will end on 31 December 2025.

Modes of PCP/CCP

Under the Singapore Polytechnic department (SP), there are three modes of CCP:

Place-And-Train

In this mode, a mid-career individual is hired first by an employer before providing him/her with the required training needed for the particular job role. This training can be through classroom learning or on-the-job-training.

Train-And-Attach/Place

Under this mode, an individual is first trained in those sectors that show good opportunities for future growth after which the individual can apply for jobs with a new skill set.

Redeployment/ Job Redesign/ Reskilling

Under the job redesign (JR) reskilling mode, companies that are venturing into new domains are offered training programmes from their existing employees to place them better in their new roles in the same company.

What is the eligibility criteria for companies, businesses, or employers?

The eligibility criteria for salary support differs slightly depending on whether the CCP program is for SMEs, professional executives, and other categories.

  • For CCP for SMEs, the eligibility criteria is for the SME to be a registered or incorporated company in Singapore. Its employment size should be less than 200 or its annual sales turnover must be less than $100 million. The SME should also be able to offer at least a 1-year contract to the candidate with a minimum monthly salary of $2,700. The SME is also bound to provide a place structured for on-job-training of the candidate and commit to all the other training requirements of CCP.
  • For CCP for Professional Executives, the employer company or business must be a registered entity in Singapore with a valid UEN issued by the Accounting and Corporate Regulatory Authority (ACRA). The employer should be able to offer the candidate a full-time job with at least a 12-month contract on a fixed salary of at least $3,000. The employer is also expected to provide premises for on-job training of the candidate. Moreover, the company is also required to share its business transformation plan with details on how the job roles will change depending on the newly acquired skills.
  • For CCP for Human Capital Professionals, the eligibility criteria for the candidate includes the general requirements of his company being incorporated in Singapore with a valid Unique Entity Number (UEN) from ACRA and that provides a place structure for on-job training. Other than that, the candidate should not be a shareholder of the CCP company and not related to the owner of the company. The candidate must be working as an HR professional in the company and must be selected by the employer to participate in the programme. The employer must also offer a full time PMET job of at least a 12-month contract with a minimum salary of $2,800.
  • For CCP for Built Environment Professionals, the participating company must be a registered entity in Singapore with a valid UEN. It must offer the candidate a minimum salary of $2,600 for a fixed job with at least a 1-year contract. This job must be directly related to the Built Environment industry.
  • For Sustainability Professionals (EV Specialists), the eligibility requirements are similar to the general eligibility requirement of CCP for Human Capital Professionals. However, the specific eligibility criteria includes the requirement that the employer must have been an employee of the participating company for more than a year. The employer must show their EV transformation plan and how they plan to reskill their employees in EV maintenance and repair.

What are the eligibility criteria for PMETs?

Just like the eligibility criteria differs for companies and employees depending on which CCP program it is, the eligibility criteria for PMETs also varies.

  • For CCP for SMEs, a PMET candidate must be a citizen or permanent resident of Singapore who wishes to work full-time in an SME with a minimum salary of $2,700. The candidate must be nominated by an eligible company for this programme. The candidate should be newly hired and apply for the programme within 3 months of his/her employment. He/she should have graduated or completed the National Service at least 2 years before applying for the programme. Moreover, the new job role for which training is being sought must be substantially different from his/her previous job role or his older job was in a non-SME entity. Finally, the candidate must not be the shareholder of the CCP company or be related to any owner of the CCP company.
  • For CCP for Professional Executives, the participating candidate must be at least 21 years of age and a permanent resident or citizen of Singapore. The candidate must have completed National Service or graduated at least 2 years prior to applying in the programme. He/she must not be a shareholder of the CCP company nor be related to any owner of the CCP company. The candidate must also not be enrolled in any other CCP at that particular time. The candidate must be a new hire who should apply to the programme no more than 3 months after the date of employment. Finally, the new job role must be different from the previous job.
  • For CCP for Human Capital Professionals, the candidate PMET must be a Singapore citizen or permanent resident of 21 years of age or older. He/she must be a newly hired PMET i.e. not have been in the company for more than 3 months before applying for the programme. The candidate must have graduated or completed NS at least 2 years before applying and the training he is seeking for the new job role must be different from his previous job role. Moreover, the candidate must not be related to the shareholders or owners of the CCP company.
  • For CCP for Built Environment Professionals, the candidate must be at least 21 years old and a Singapore citizen or permanent resident. He/she must have graduated or completed National Service at least 2 years prior to the application. He/she must be a new hire with no prior experience of working in the Built Environment sector. The candidate must not be the shareholder of the participating company nor be related to any of its owners.
  • For Sustainability Professionals (EV Specialists), the candidate must be a Singapore citizen or permanent resident. His/her age must be at least 21 years when applying for the programme and must have graduated or completed NS at least 2 years before. The candidate must not have been hired more than 3 months ago and should not be a shareholder of the participating company nor be related to any of its owners. Finally, the candidate must be physically fit and be able to identify colors.

Jobs Growth Incentive

The Jobs Growth Incentive(JGI) was introduced in Singapore in August 2020 to help employers hire more local Singapore citizens. The programme ran till March 2023. Under this programme, employers were offered 25% salary support for local employees under 40 years of age with a maximum cap of $5,000 per month. This salary support was offered for a duration of 12 months. For individuals aged above 40 years, the JGI provided 50% salary support with a maximum cap of $6,000 per month for a duration of 18 months.

Employers that met the eligibility criteria of JGI were offered these income support grants on top of the ones they received under the CCPs. The CCP grants were then disbursed to the employers over an extended period that comprised the CCP training duration as well as an additional retention period. However, after the end of JGI in March 2023, these funding adjustments of CCPs have reverted back.

Jobs Support Scheme

The Jobs Support Scheme (JSS) was introduced in February 2020 and it ended in March 2022. The JSS provided salary cap support to employers during the uncertain economic situation following the spread of COVID-19 pandemic. Apart from Government organizations, any kind of employer was eligible for JSS.

The JSS paid employers a portion of the first $4,600 gross monthly salaries of the employees. The duration of this salary support depended on the sector or industry associated with a business. The Government also introduced an extended JSS support in 2021.

The Singapore Government offered these above-mentioned salary support schemes and grants to employers and companies to help them expand their workforce and to hire local Singapore employees. These grants not only helped the employers in mitigating the effects of the economic crunch but also provided employees with the opportunity to acquire new skills and switch to a new job role mid-career.

At CZ Consultancy, we excel in providing up-to-date information about these grants and all their related technicalities, together with exceptional grant consultation services to ensure you maximise your budget for business expansion.

As a consultancy, we also provide services such as immigration services and corporate secretarial. Talk to us today and get all the information and help you need.