This is for Singaporeans and permanent residents released from jail in the past three years before being hired and are earning less than S$4,000 per month. It comes into effect on Apr 1. Employers who hire eligible ex-offenders directly can apply for the wage subsidies through the Inland Revenue Authority of Singapore.
Minister of State for Manpower Gan Siow Huang said challenges that ex-offenders sometimes face are more acute in the initial years after release, as they transit from prison to the work environment.
She cited stigmatisation, limited career opportunities, low educational qualifications and lack of recent work experience as potential difficulties faced by ex-offenders.
“A hiring incentive for ex-offenders will help encourage a wider range of employers to provide job opportunities to ex-offenders,” Ms Gan said.
Employers will receive the wage support for new ex-offenders hired between April 2023 and December 2025, before the scheme is reviewed.
Wage subsidies will also increase for people with disabilities who have not worked for the past six months before being hired.
From Apr 1, companies can get funding of up to 20 per cent of such employees’ monthly income, capped at S$400 each, for the first nine months of employment. This was previously up to 10 per cent and capped at S$200 for the first six months.
This is on top of the permanent wage support of up to 20 per cent, capped at S$400 per month per employee, for employers of people with disabilities earning below S$4,000 a month.
SUPPORT FOR SENIORS
The Senior Employment Credit and Part-time Re-employment Grant were extended to 2025, and MOM outlined upcoming changes to the schemes.
Companies that employ people between the ages of 55 and 59 will no longer receive wage support under the SEC.
For this year, employers who hire seniors 60 years old and above will receive the same wage subsidy as in 2021 and last year – up to 8 per cent depending on the age range and wage.
But in 2024 and 2025, the wage support will be reduced by one percentage point for each band. For example, for the age range of 60 to 64 years, employers can get funding of up to 3 per cent this year. Next year, this will be reduced to up to 2 per cent.
The maximum wage support in 2024 and 2025 will be 7 per cent for those 68 years old and older. The subsidy does not apply to those earning more than S$4,000 per month.