Employment & labour — Topics

14 Jul 2015

Review on Effectiveness of Foreign Worker Levies

Yeo Guat Kwang questioned whether foreign worker levies have shifted from their original purpose to merely reducing company margins and asked if removing them would benefit the local workforce, while also seeking support plans for businesses, especially SMEs.
The Minister for Manpower explained that levies, alongside quotas, help manage foreign worker demand, encourage productivity, and protect local workers' wages, noting that removing them could suppress local salaries and reduce investment in technology.
The Minister added that various government schemes, such as SPRING’s Innovation and Capability Voucher and lower levies for skilled workers, assist firms, particularly SMEs, in adapting to manpower challenges and improving productivity.
Nominated Member Thomas Chua inquired about the specific sectors that received foreign workers in 2014 and what portion went to SMEs, following a noted decline in foreign worker growth from 2011 to 2014.

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13 Jul 2015

Nexus between Income Earned and Attendance at Continuing Education & Training (CET) Courses

Mr Yee Jenn Jong asked the Ministry for Manpower whether it tracks data linking Continuing Education and Training (CET) course attendance to income gains and if this data can be published regularly.
The Ministry responded that the Singapore Workforce Development Agency (WDA) conducts annual Outcome Evaluation Surveys on training outcomes, with findings already published, showing that in 2014, 19% of respondents reported a pay increase and 37% had a new or enlarged job scope after training.
A 2013 longitudinal study found that individuals who completed some WSQ training had 1.3% to 4.3% higher wages than those who did not, with full qualification leading to 5.3% higher wages, and benefits were particularly strong for lower-wage workers.
The Ministry emphasized the importance of skills development and lifelong learning for employability and stated it will continue to monitor the effectiveness of the training system.

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13 Jul 2015

Employers Who Violate the Employment Act

The Ministry of Manpower enforces strict penalties on employers who fail to pay CPF contributions, including requiring them to make good the contributions, charging late payment interest, imposing fines, and potentially facing jail terms.
The WorkRight initiative launched in 2012 significantly increased inspections and public education, benefiting over 42,000 Singaporeans by ensuring compliance with statutory entitlements like CPF payments.
Between January 2011 and December 2014, the CPF Board handled about 3,400 complaint cases for non-payment of CPF, recovering $9.8 million for over 5,800 employees, with a quarter involving part-time, casual, or temporary staff.

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13 Jul 2015

Approved Purpose-built Dormitories for Foreign Workers in Services Sector

Mr Zainal Sapari asked whether the Ministry for Manpower can allow foreign workers in the services sector to live in approved purpose-built dormitories, similar to those available for the construction and marine sectors.
Lim Swee Say clarified that commercial purpose-built dormitories managed by BCA, HDB, and JTC already allow Work Permit holders from all industrial sectors, including services, to occupy up to 25% of each dormitory’s capacity.
Businesses with specific housing needs can approach the relevant dormitory overseeing agencies to arrange accommodation for their foreign workers in these facilities.

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13 Jul 2015

Progressive Wage Model Requirement for Government Unarmed Security Contracts

Mr Zainal Sapari asked whether the Government will require Ministries and Statutory Boards to adopt the Progressive Wage Model (PWM) for unarmed security contracts before it becomes a licensing condition on 1 September 2016.
Deputy Prime Minister Tharman Shanmugaratnam confirmed the Government fully supports implementing the PWM in public sector security contracts ahead of the licensing deadline.
The Government has accepted the Security Tripartite Cluster’s recommendations for PWM in the security industry and is discussing ways to identify early adopters for recognition in contract awards.

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13 Jul 2015

Rights of Freelance Workers in Singapore

Tin Pei Ling asked for the estimated number of freelance workers in Singapore, whether there is an increasing trend, and if the government would consider including them in the Employment Act or other laws for clearer recourse if denied payment by hirers.
As of June 2014, there were 183,900 freelance workers, making up 8.7% of employed residents, down from 9.4% in 2004, indicating a slight decline over the decade.
Freelance workers are considered self-employed with no employer-employee relationship, so they are not covered by the Employment Act, but they can seek legal redress through State Courts or the Small Claims Tribunal if not paid by clients.

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13 Jul 2015

Length of Stay for Foreign Students Given Tuition Grants to Study in Singapore

Mrs Lina Chiam asked about the number of foreign students receiving tuition grants in 2014, employment statistics for graduates from 2011 to 2014 by faculty, and their options to stay or leave Singapore.
Heng Swee Keat stated that about 3,650 international students in the 2014 cohort received tuition grants, and most either work in Singapore or have deferred service obligations.
Faculty-level employment data is not available, but on average 80% of grant recipients are working or have deferred service, with career guidance provided by institutions.
International students seeking employment can apply for a one-year Long-Term Visit Pass with the Immigration and Checkpoints Authority after graduation.

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13 Jul 2015

Government Support for NWC Recommendations for Low-wage Outsourced Workers

The government requires agencies to remind bidders for contracts in security, cleaning, and landscaping to follow NWC wage increment recommendations in their bid prices.
Multi-year contracts allow bidders to present a year-by-year price breakdown to reflect expected wage increases, ensuring realistic cost projections.
Since July 2013, new multi-year tenders have included provisions for such annual breakdowns to support better labor practices for low-wage outsourced workers.

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13 Jul 2015

Employers who Pay CPF Contributions for Phantom Local Workers

Mr K Karthikeyan asked the Minister for Manpower for the number of employers who paid CPF contributions for phantom local workers to inflate their foreign worker quota from 2011 to 2014.
Lim Swee Say responded that from 2011 to 2014, MOM took enforcement action against 90 employers for illegally inflating their foreign worker quota by making CPF contributions to locals who did not work for their companies.
Errant employers face financial penalties of up to $20,000 per work pass application made using the inflated quota and may be debarred from hiring foreign workers for 12 months or more, depending on the severity of the case.

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13 Jul 2015

Creating Job Opportunities for PMETs through Place-and-Train Programmes

Lim Swee Say outlined government measures to support PMETs facing industry restructuring, including the Professional Conversion Programme which has helped over 6,000 PMETs since 2007, and the new Career Support Programme providing wage support to employers hiring mature PMETs in mid-level jobs from October 2015.
He emphasized the need for both employers to value the experience of mature PMETs and for PMETs themselves to adapt and upskill to seize new opportunities in the innovation-driven economy.
Foo Mee Har's query about expanding place-and-train programmes to aid mid-career switches prompted the Minister's detailed response on existing and enhanced initiatives, affirming the government's commitment to helping PMETs through restructuring.

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13 Jul 2015

Long Working Hours for Housemen on Night Shifts

Minister Gan Kim Yong explained that house officers are now under the Postgraduate Year 1 (PGY1) framework, which caps work at 80 hours per week and limits continuous duty to 24 hours with additional handover time.
The framework mandates at least four night calls per month, 10 hours of rest between shifts, and weekly off days, with hospitals generally complying and some implementing shift systems like half call and night float.
These shift systems and a steady increase in house officers have helped reduce long working hours and night call frequency, though night calls remain for training under supervision.

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13 Jul 2015

Impact of Over Supply of Food and Beverage Outlets on Manpower Demand

The number of F&B establishments in Singapore grew from 6,000 in 2009 to 7,000 in 2014, with employment in the sector rising faster than the overall workforce, prompting concerns about manpower sustainability.
The sector faces challenges including slowing sales growth, increased competition, and labour constraints, making continued expansion in workforce size unsustainable.
The government is promoting productivity and manpower efficiency through initiatives like the Food Services Productivity Roadmap, which supports kitchen automation, workflow redesign, and digital services.
F&B enterprises can access grants and vouchers such as the Capability Development Grant and Innovation and Capability Voucher to adopt technology and reduce reliance on manpower.
The emphasis is on transforming the sector through innovation and productivity gains to address labour shortages while supporting ongoing and future projects.

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13 Jul 2015

Employment (Amendment) Bill

The debate centered on amending the Employment Act to update employment regulations and align them with modern workforce needs.
The Minister for Manpower introduced the bill, highlighting its purpose to enhance protections for employees while maintaining flexibility for employers.
The bill also proposed consequential amendments to other written laws to ensure consistency across legal frameworks.
The First Reading was completed, with the Second Reading scheduled for the next parliamentary sitting to allow for further discussion.
The amendments aim to address evolving employment practices and improve overall labor standards in Singapore.

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13 Jul 2015

Drop in Job Growth in First Quarter of 2015

The sharp drop in job growth in the first quarter of 2015 was attributed to seasonal declines, moderation in manufacturing and construction, and slower growth in services sectors, though the overall year-on-year job growth remained positive at 2.7%.
The Manpower Minister emphasized that Singapore's high employment rate, low unemployment, and high job vacancies indicate a tight labor market, and the focus is on restructuring the economy towards productivity and innovation rather than relying on foreign labor growth.
Concerns were raised about whether the slowdown signals that restructuring is too slow, but the Minister argued that faster restructuring would further slow job growth and that the transition is necessary for long-term sustainability, with support for businesses in both tradable and non-tradable sectors.

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13 Jul 2015

Requirement for Employers to Consider Qualified Singaporeans before Applying for Employment Pass for Foreigners

The Ministry of Manpower is enhancing the Fair Consideration Framework and Jobs Bank to ensure employers give priority to qualified Singaporeans, with stricter scrutiny of Employment Pass applications for companies with a weak Singaporean Core.
Companies with a weaker Singaporean Core relative to their industry will be required to provide evidence of fair hiring practices and may need to commit to plans to strengthen their local workforce.
The government will use data from the Jobs Bank to identify skills deficits and work with industries to address them, while also profiling and promoting companies with strong Singaporean cores and progressive employment practices.
Only a small group of employers with a “double weak” profile (weak Singaporean Core and weak commitment to fair consideration) will face tighter EP approval processes, to maintain Singapore’s competitiveness and attractiveness to businesses.

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11 May 2015

Outcomes of Max Talent Place-and-Train Programme

Assoc Prof Randolph Tan questioned the outcomes of the Max Talent place-and-train programme, the reasons for PME attrition within six months, and whether the enhanced P-Max programme would perform differently.
The Ministry reported that Max Talent successfully placed 1,000 PMEs in 954 SMEs, with 88% remaining employed after six months, and most early departures were due to personal reasons.
The new P-Max programme introduces an SME Workshop for supervisors and an enhanced PME Workshop to improve talent management, aiming to place 3,000 PMEs and technicians in SMEs over three years.

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11 May 2015

PMEs Employed through CaliberLink

Assoc Prof Randolph Tan inquired about the annual number and proportion of PME job placements via CaliberLink since 2012 and the impact of the Jobs Bank on its services.
CaliberLink, established in 2011, has assisted over 26,000 PMEs through coaching, workshops, and events, with more than 13,000 securing employment.
The Jobs Bank, launched in 2014, complements CaliberLink by providing online job search access, averaging 60,000 weekly vacancies including 30,000 with salaries of $5,000 or more.
PMEs are encouraged to use all available avenues, including the Jobs Bank, for their job search.
The government confirmed that CaliberLink's services are now integrated into WDA Career Centres and e2i.

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11 May 2015

Workers Retrenched in 2014

Gerald Giam Yean Song asked the Minister for Manpower for a breakdown of the 12,930 workers laid off in 2014 by citizenship and Permanent Resident status, and for data on retrenchment benefits received by residents.
Lim Swee Say responded that 7,240 (56%) of those laid off were residents, a proportion lower than their two-thirds share of the workforce, and noted that data on specific retrenchment benefit amounts is not available.
The Minister added that the government and tripartite partners are assisting laid-off locals with reskilling and noted the low resident long-term unemployment rate of 0.6%.

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11 May 2015

Adequacy of Freelancers and Self-employed Individuals' CPF Savings

Ang Hin Kee proposed a government CPF top-up scheme for freelancers and self-employed individuals similar to the Temporary Employment Credit, and asked whether current CPF savings are adequate for their retirement and medical needs and what measures exist to encourage regular contributions.
Lim Swee Say responded that the Workfare Income Supplement already tops up MediSave accounts for low-income self-employed persons, and tax relief incentives exist for voluntary CPF contributions, while noting their median MediSave balances remain lower than employees'.
The CPF Board uses outreach, instalment options, and industry partnerships to encourage MediSave contributions, with recent increases in contribution rates and higher interest for older members to help meet healthcare needs.
The government provides substantial MediShield Life premium subsidies and additional support for those in financial need, but self-employed individuals are not required to contribute to retirement accounts and must take personal responsibility for retirement planning.

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11 May 2015

"Lifetime Wage" Criterion for Silver Support Scheme

Christopher de Souza sought clarification on the definition of "lifetime wage" for the Silver Support Scheme and the rationale for using this criterion.
Lim Swee Say explained that the scheme targets the bottom 20% to 30% of elderly Singaporeans, using lifetime wages (pre-retirement) to assess eligibility since current wages may not reflect means.
Lifetime wages are measured by total CPF contributions before age 55 to avoid discouraging older workers from continuing employment, alongside household support and housing type.
The scheme aims to supplement retirement incomes and is planned for implementation in the first quarter of 2016, with further details to come.

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