In today’s rapidly evolving business landscape, staying competitive requires a skilled and adaptable workforce. For Singapore, a nation known for its economic dynamism, workforce development is a critical priority. The need for upskilling and training has never been more apparent, and the government is playing a pivotal role in addressing this challenge through various training grants.
In this blog, we’ll explore the landscape of workforce development in Singapore and delve into the different types of government training grants available to businesses and individuals. We’ll also discuss the numerous benefits of these grants and provide a comprehensive guide on how to leverage them effectively.
Understanding the Landscape
Singapore, often regarded as a global business hub, faces unique workforce challenges. With technological advancements and industry disruptions becoming increasingly prevalent, the demand for new skills and competencies is growing exponentially. Businesses are tasked with adapting to these changes swiftly, which necessitates constant employee upskilling and training.
This is where government training grants step in. The Singaporean government has recognized the urgency of developing a future-ready workforce and has allocated substantial resources to support this mission. By incentivizing businesses and individuals to invest in training and skills development, they aim to ensure that Singapore remains competitive on the global stage.
Types of Government Training Grants
There are two main types of government training grants:
- Individual grants: These grants are available to individuals to help them pay for training courses.
- Employer grants: These grants are available to employers to help them pay for training for their employees.
Individual Grants
- SkillsFuture Credit: This grant is open to all Singaporean citizens aged 25 and above, allowing them to defray the expenses associated with approved training courses endorsed by SkillsFuture Singapore. The SkillsFuture Credit can be applied towards a diverse spectrum of training programs, spanning technical skills, soft skills, and entrepreneurship training.
- SkillsFuture Mid-Career Enhanced Subsidy: Geared towards Singaporean Citizens aged 40 and above who seek to enhance their skills or transition to a new career, this subsidy provides more substantial fee reductions. Eligible individuals can enjoy subsidies covering up to 90% of the course fee for courses offered by SSG-appointed CET Centres and up to 70% of course fees for certifiable-skills training courses.
- Singapore Workforce Skills Qualifications (WSQ) Funding: Available to both individuals and employers seeking WSQ-certified courses, this grant facilitates access to accredited courses endorsed by SkillsFuture Singapore, spanning various industries and skill sets. Individuals can receive funding covering up to 70% of the course fees for qualifying WSQ courses, while employers can secure up to 90% of course fee funding.
Employer Grants
- Course Fee Funding and Absentee Payroll Funding: These grants are accessible to employers who sponsor their employees (Singapore Citizens and Permanent Residents) for training programs. The amount of funding you can secure depends on various factors. Refer to the below table to get an idea of the funding support provided by SSG.
| Funding Support for Courses Offered by SSG-Appointed CET Centres |
Funding Support |
| For Singapore Citizens (SCs) and Permanent Residents (PRs) |
Up to 70% of course fees. |
| For SCs aged ≥ 40 years old (SkillsFuture Mid-career Enhanced Subsidy) |
Up to 90% of course fees. |
| For Small and Medium Enterprises (SMEs) (Enhanced Training Support for SMEs) |
Up to 90% of course fees. |
| For Persons With Disabilities (PwDs) who are SCs and PRs (Only for eligible courses supported by SG Enable; for more information on Skills and Training Support for PwDs, please refer to Enabling Academy by SG Enable) |
Up to 95% of course fees. |
| Funding Support for Certifiable Courses: |
Funding Support |
| For courses conducted by external training providers: |
|
| For SCs and PRs: |
Up to 50% of course fees. |
| For SCs aged ≥ 40 years old (SkillsFuture Mid-career Enhanced Subsidy): |
Up to 70% of course fees. |
| For SMEs (Enhanced Training Support for SMEs): |
Up to 70% of course fees. |
| For in-house certifiable training: |
|
| For SCs and PRs: |
$7 per hour. |
| For SMEs (Enhanced Training Support for SMEs): |
$15 per hour. |
| Funding Support for Non-Certifiable Courses: |
Funding Support |
| For all SCs and PRs: |
$2 per hour. |
Note: From 31 December 2024, all non-certifiable courses and in-house training will no longer be funded by SSG.
Employers are also entitled to receive Absentee Payroll (AP) funding for SSG-approved courses. This is standardized at a rate of S$4.50 per hour, with an annual cap of S$100,000 for each organization. For Singapore Citizens aged 30 and above (or Persons with Special Needs aged 13 and above) earning a monthly salary ≤$2,500, it is 95% of the hourly basic salary, capped at $13 per hour (Workfare Skills Support)
AP Funding is specifically tailored to support employers in meeting the costs associated with employee training for certified skills. When training takes place outside regular working hours, this funding is allocated to employers to help cover the overtime payments extended to their employees. To qualify for AP funding, employers must have a Human Resource (HR) policy in place that explicitly outlines the provision of overtime compensation to their employees.
- Enhanced Training Support for SMEs: Designed to empower small and medium-sized enterprises (SMEs), this grant is intended to assist them in upgrading their workforce’s skills. SMEs can access funding that covers up to 90% of course fees for eligible training programs. Enhanced Training Support for SMEs is versatile and can be utilized for a diverse range of training courses, spanning technical skills, soft skills, and entrepreneurship training.
- SkillsFuture Enterprise Credit: This grant offers a one-time credit of S$10,000 to eligible employers, enabling them to bolster the training and development of their employees. The SkillsFuture Enterprise Credit can be employed to defray the costs associated with an extensive variety of training courses, encompassing technical skills, soft skills, and entrepreneurship training.
Eligibility Criteria
The eligibility criteria for each grant vary, but some common criteria include:
- Citizenship: Most grants are only available to Singapore citizens or permanent residents.
- Age: In general, to use any of the SkillsFuture grants, one needs to be 21 years and above. Some grants have age restrictions, such as the SkillsFuture Mid-Career Enhanced Subsidy, which is only available to Singaporeans aged 40 and above.
- Employment status: Some grants are only available to employed individuals or employers.
- Course eligibility: Some grants have specific course eligibility criteria, such as the WSQ Funding grant, which is only available for WSQ-certified courses.
- Employer Grants: The grants are available to enterprises that are registered or incorporated in Singapore and have an employment size of not more than 200 or with an annual sales turnover of not more than $100 million.
Examples
Here are some examples of how different grants can be used:
- A Singaporean citizen aged 30 years old could use their SkillsFuture Credit to pay for a course on digital marketing.
- A Singaporean citizen aged 50 years old could use the SkillsFuture Mid-Career Enhanced Subsidy to pay for a course on effective communication for supervisors.
- An employer could use the Course Fee Funding grant to pay for their employees to take a course on lean manufacturing.
- A small and medium-sized enterprise (SME) could use the Enhanced Training Support for SMEs grant to pay for their employees to take a course on cybersecurity.
- An employer could use the SkillsFuture Enterprise Credit to pay for their employees to take a WSQ supervisor course.
Government training grants can be a great way for individuals and employers to invest in their skills development. There are a variety of grants available, with different eligibility criteria and industries or sectors they are typically applicable to. To find out more about the different grants available and to see if you are eligible, you can visit the SkillsFuture website.
Benefits of Government Training Grants
The advantages of utilizing government training grants are manifold, benefiting both businesses and employees. For businesses, these grants provide a strategic advantage by:
- Enhancing Competitiveness: Improved employee skills contribute to enhanced productivity and innovation, positioning businesses more competitively in their industries.
- Cost Savings: Grants offset the financial burden of training, making it more affordable for businesses to invest in workforce development.
- Talent Retention: Offering opportunities for skill development can boost employee morale and retention, reducing turnover costs.
- Compliance: Many grants encourage businesses to meet regulatory requirements, ensuring they remain in good standing.
For employees, government training grants offer opportunities for:
- Career Advancement: Upskilling and acquiring new certifications can open doors to career growth and higher earning potential. Leveraging the grants to complete approved courses under the Progressive Wage Model’s (PWM) training requirements can help employees earn more as they move up the ladder.
- Skill Diversification: Grants enable individuals to acquire skills that are in demand, enhancing their employability.
- Lifelong Learning: Encouraging a culture of continuous learning ensures individuals remain relevant in a dynamic job market.
How to Leverage Government Training Grants
Leveraging government training grants effectively requires careful planning and execution. Here’s a step-by-step guide for businesses:
- Research and Identify Suitable Grants: Start by identifying grants that align with your industry and workforce needs.
- Determine Training Needs and Objectives: Assess your employees’ skill gaps and establish clear training objectives.
- Develop a Training Plan: Create a comprehensive training plan that outlines the courses, resources, and timeline.
- Prepare Necessary Documentation: Gather all required documentation, such as training proposals and cost estimates.
- Submit Applications and Track Progress: Submit grant applications promptly and monitor their status regularly.
- Compliance and Reporting Requirements: Fulfill all compliance and reporting obligations to ensure continued grant eligibility.
Conclusion
In conclusion, government training grants in Singapore offer a lifeline for businesses and individuals navigating the ever-changing landscape of workforce development. By understanding the types of grants available, their eligibility criteria, and the benefits they offer, organizations can chart a path towards a more skilled and competitive workforce.
To maximize the impact of these grants, companies should actively engage approved training providers who specialize in delivering courses aligned with grant requirements. These providers possess the expertise and experience to ensure that the training programs not only meet the grant criteria, but also deliver high-quality learning experiences, helping companies to upskill their workforce effectively.
It’s time to harness the power of government training grants and secure a brighter future for Singapore’s workforce. Don’t miss out on the opportunities they present; invest in the skills of today for the success of tomorrow.
