27 May 2020
Ref No.: 270520 (2)
Dear Valued ASPRI Members,
Overcoming COVID-19 Together: Fortitude Budget – Support for Workers and Businesses
FORTITUDE BUDGET – SUPPORT FOR WORKERS
In preparation to gradually resume normal activities and services post-circuit breaker, The Fortitude Budget has just been announced by the Government with the aim to alleviate the financial strains faced by workers. Below are some highlights for your perusal.
Enhanced Job Support Scheme (JSS)
The JSS will be extended for one more month to cover wages in August 2020. Firms that are not allowed to resume operations will continue to receive 75% wage support until August 2020, or when they can re-open (whichever is earlier).
Training courses will be available for jobseekers to upgrade their skills while looking for a job. A training allowance of $1,200 per month for a course duration (between 6 to 12 months) will cover basic expenses. This will be rolled out progressively from July.
There will be hiring incentives for employers which hire local workers who have completed eligible traineeship and training programmes. This will be expanded to cover workers of all ages.
For eligible workers under the age of 40, the incentive will be 20% of the monthly salary for 6 months, capped at $6,000 in total. For those 40 and above, the incentive will be 40% of the monthly salary for 6 months, capped at $12,000 in total.
FORTITUDE BUDGET – SUPPORT FOR BUSINESSES
The Fortitude Budget also aims to assist businesses with cash flow, costs and credits. Please see below for the important extracted highlights for your reference.
Foreign Worker Levy (FWL) Waiver and Rebate
The FWL waiver and rebate will be extended by up to months for businesses that are not allowed to resume on-site operations after the circuit breaker. There will be a 100% waiver and $750 rebate in June 2020, and a 50% waiver and $375 rebate in July 2020.
Deferment of Higher CPF Contribution Rates
The increase in CPF contribution rates for senior workers will be deferred by 1 year, from 1 Jan 2021 to 1 Jan 2022.
Cash Grants to Help SMEs with Rental
$2 billion in cash grants will help SME tenants with rental costs. Including the tax rebate for 2020, the Government will offset one to two months’ rental for qualifying SME tenants.
For more details, please refer to Rental Relief for Tenants.
For more information about the above-mentioned, please visit go.gov.sg/fortitude or kindly refer to the appended documents for your perusal.