A government initiative to provide more support for Singaporean PMEs proves bittersweet for employers, establishing an Employment Claims Tribunal and more stringent hiring rules, but also offering up to $33,600 a year in wage subsidies.
The Tribunal will be set up in the first quarter of 2016, and will hear claims from PMEs who earn more than $4,500 a month and are not covered by the Employment Act, the Ministry of Manpower announced yesterday.
The measure is one of several with the goal of enhancing support for PMEs, MOM said.
Singapore employers will also soon be required to publish the salary range of job vacancies they list in the Jobs Bank.
Employers whose job advertisements don’t stipulate a salary range will have Employment Pass (EP) applications rejected.
“This enhancement will make the job terms clearer to Singaporean job seekers and improve labour market transparency,” MOM said in a release.
MOM planned to also increase scrutiny of EP applications for companies which have less Singapore PMEs compared to others in their industry, require these employers to submit more information to check whether Singaporeans were considered fairly – such as the number of applications submitted by Singaporeans, the number of Singaporeans interviewed, and the company’s current share of Singaporeans in PME positions.
But for HR leaders, the news isn’t all bad.
Subsidies are up for grabs for hiring unemployed Singaporeans PME jobs paying over $4,000 a month.
Starting 1 October this year and running for two years, the initiative will mean Singapore employers who hire jobless locals can get wage subsidies of between $400 and $2,800 each month for 12 months, to lower the costs of hiring these workers.
The Singapore Workforce Development Agency (WDA) is set to implement a new Career Support Programme (CSP) to “encourage employers to tap on the wealth of experience that mature Singaporean PMEs can bring to the workplace”, MOM said in a release yesterdays.
Employers who employ mature workers, who have been looking for jobs for at least six months, in mid-level jobs that pay at least $4,000, will be given wage support.
|For PMEs aged 50 and above||For PMEs aged between 40 and 50|
|Wage support for first 6 months:||40% of gross monthly salary, capped at $2,800 a month||20% of gross monthly salary, capped at $1,400 a month|
|Wage support for next 6 months:||20% of gross monthly salary, capped at $1,400 a month||10% of gross monthly salary, capped at $700 a month|