SSG Training Subsidy Changes

SkillsFuture Funding Subsidy Changes

SkillsFuture Singapore (SSG) has recently announced changes to the training grant subsidy for SkillsFuture funded courses starting from 1 January 2022.  This is part of SSG continuous review of their schemes to ensure the effective use of funding resources and provide the best training outcome for the local workforce.

First of all, let’s outline the key differences between the available training grants and SkillsFuture Credit.  To facilitate this, we will cover this in two sections; Individual Self-sponsored training and Employer-sponsored training.  Please note that the funding amount mentioned below are for courses commencing on or after 1 January 2022.  This is applicable for certifiable courses approved by SSG and conducted by SSG approved training organisations (ATOs) like BP Coach Training.

SkillsFuture Funding for Self-Sponsored Training

SkillsFuture Funding for Individual Self-sponsored

Lifelong Learning

To encourage individuals to take ownership of their skills development and lifelong learning, individuals can tap onto various SSG-funded courses.
What are some of these available funding for self-sponsored individuals?

1.1 SSG Training Grants – Baseline Subsidy

Singaporeans and Singapore Permanent Resident (SPR), above 21 years old who attend SSG certifiable courses that are aligned to the Skills Framework are eligible for baseline course fee subsidy.  Examples of SSG certifiable courses are WSQ (Workforce Skills Qualifications) accredited programs. With effect from 1 January 2022, the baseline course fee subsidy will be up to 50% of the course fee.  

Note that trainees must meet the minimum 75% course attendance and pass the assessments to be eligible for the subsidies.

1.2 Mid-Career Enhanced Subsidy (MCES)

Mid-career individuals who are Singaporean, 40 years old and above may face greater challenges in undertaking training.  As such, the Government has implemented the Mid-Career Enhanced Subsidy (MCES) program to encourage mid-career Singaporeans to upskill and reskill.

The MCES program provides an enhanced subsidy of up to 20%-points above the baseline course fee subsidy.  This ensures that mid-career Singaporeans are eligible for up to 70% course fee subsidy for WSQ certifiable courses approved by SSG.

Let’s take an example of a training program whose cost fee is $900.  The training grant calculation is shown below. 

Individual Self-sponsored Trainee Spore Citizen/SPR >21 years old Spore Citizen >= 40 years old
Course Fee (Example) $ 900 $ 900
Baseline Course Fee Subsidy (50%) $ (450) $ (450)
Mid-Career Enhanced Subsidy (20%) - $ (180)
Net Fee Payable (Out-of-pocket expense) $ 450 $ 270

1.3 SkillsFuture Credit

The training grant subsidies mentioned above are often confused with SkillsFuture Credit (SFC).  These subsidies are applicable for all Singaporeans and SPR who attend SSG certifiable courses and are on top of the SkillsFuture Credit.  In other words, the subsidies given are not taken from your personal SkillsFuture Credit.

Introduced in 2015, all Singaporeans aged 25 and above will receive an opening SFC credit of $500. To further encourage Singaporeans to take timely action to reskill and upskill to seize opportunities in the future economy, a one-off SkillsFuture Credit top-up of $500 was provided to every Singapore Citizen aged 25 years and above as at 31 December 2020. This top-up can be used on all SkillsFuture Credit-eligible courses, and will expire on 31 Dec 2025.

This means that the net fee payable (out-of-pocket expense) for these SSG certifiable courses can be paid using your SFC, if available.  The instructions on how to make payment using the SFC are included in the invoice.  In addition, your SFC can also be used for SFC-eligible courses which may not be a certifiable course approved by SSG.  

Which of the Leadership Coaching courses are Certifiable (WSQ) Courses approved by SkillsFuture Singapore (SSG)?

Which are the non-WSQ Leadership Coaching courses that are SkillsFuture Credit-eligible?

SkillsFuture Funding for Employer-sponsored Training

SkillsFuture Funding for Employer Sponsored

Upskilling Employees

There is an increasing need to upskill and develop future-ready employees as employers face challenges from global threat and technological changes,   As part of the government initiative to help employers defray the training cost, SkillsFuture Singapore (SSG) is providing Course Fee and Absentee Payroll Funding for employers who sponsor employees for training.

2.1 SkillsFuture Funding – Baseline Course Fee Subsidy

The Baseline Course Fee Subsidy helps to lower the cost when employers sponsor their Singapore Citizen and Permanent Resident employees for certifiable training courses like WSQ (Workforce Skills Qualifications) programs approved by SSG.

Organisations must be registered or incorporated in Singapore to be eligible for the subsidy.  The baseline course fee subsidy will be up to 50% of the course fee

2.2 Mid-Career Enhanced Subsidy (MCES) for Employees

Employers can leverage on the Mid-Career Enhanced Subsidy (MCES) scheme to upskill and reskill mid-career professionals who are Singaporeans, 40 years old and above,  This will help to ensure these professionals stay relevant in the changing environment. 

This MCES SkillsFuture Funding scheme provides an additional 20% subsidy above the baseline course fee subsidy. In other words, mid-career Singaporean employees are eligible for up to 70% course fee subsidy for WSQ certifiable courses approved by SSG.

2.3 Enhanced Training Support for SMEs (ETSS)

The government also recognise the challenges faced by Small and Medium Enterprises (SMEs) as compared to the larger companies when sending their employees for training.  Therefore, SSG is offering additional support to the SMEs through the Enhanced Training Support for SMEs (ETSS) scheme. 

The ETSS scheme provides an enhanced subsidy of up to 20% above the baseline course fee subsidy. Essentially, it means that SME employees who are Singaporean and Permanent Resident are eligible for up to 70% course fee subsidy for WSQ certifiable courses approved by SSG.

SMEs must meet all of the following eligibility criteria for this SkillsFuture Funding:

  1. Registered or incorporated in Singapore
  2. At least 30% local shareholding by Singapore Citizens or Singapore Permanent Residents
  3. Employment size of not more than 200 (at group level) or with annual sales turnover (at group level) of not more than $100 million

Here’s an example of how to calculate the training grant subsidy.  Assuming the course fee of a program is $900. 

Employer-sponsored Trainee SME Non-SME
Spore Citizen/SPR Spore Citizen/SPR Spore Citizen >= 40 years
Course Fee (Example) $ 900 $ 900 $ 900
Baseline Course Fee Subsidy (50%) $ (450) $ (450) $ (450)
Enhanced Training Support for SMEs (20%) $ (180) - -
Mid-Career Enhanced Subsidy (20%) - - $ (180)
Net Fee Payable (Out-of-pocket expense) $ 270 $ 450 $ 270

2.4 Absentee Payroll (AP) Funding

Absentee Payroll (AP) funding is a grant to help employers defray the manpower costs incurred when they send their employees for certifiable skills training.

Starting in 2022, SkillsFuture Singapore (SSG) will introduce a fixed AP rate at $4.50 per hour. SSG will also set a $100,000 cap on the maximum AP funding each company can claim each calendar year to ensure that the benefits are more evenly distributed across companies.

For example, each Leadership course (WSQ) mentioned above is 19.25 training hours. The amount of AP claimable is:

Absentee Payroll (AP) Calculation Training hours AP Rate Total AP Claimable
Each Leadership Course (Example) 19.25 $4.50 $86.63

Once the employee has completed the training, the employer will receive a notification from SSG to login to the Enterprise Portal for Jobs and Skills (EPJS) to submit the AP claims.  Organisations are required to have a Corporate PayNow account setup in EPJS to receive the Absentee Payroll (AP) claims.

ICF Coach Certification

Build a high-performance coaching culture.  Tap onto the SkillsFuture funding to certify your leaders to be an ICF (International Coaching Federation) certified coach. 

Find out more

Upcoming Courses
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    Team Leadership for Performance and Results (WSQ)

    M Hotel - Singapore

  • Dec 15

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  • Jan 05

    Coaching for Performance and Capability Development 2.0 (WSQ)

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  • Jan 19

    Emotional Intelligence (EQ) for Transformational Leadership (WSQ)

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  • Feb 16

    Team Leadership for Performance and Results (WSQ)

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2.5 SkillsFuture Enterprise Credit (SFEC)

The SkillsFuture Enterprise Credit (SFEC) encourages employers to invest in enterprise transformation and capabilities of their employees. Eligible employers will receive a one-off S$10,000 credit to cover up to 90% of out-of-pocket expenses on qualifying costs for supportable initiatives, over and above the support levels of existing schemes.

Essentially, organisations can use up to the full $10,000 for Workforce Transformation on training courses aligned to the various Industry Skills Frameworks.  Other eligible programs include Job redesign initiatives, and Professional Conversion Programs etc. by Workforce Singapore (WSG).  The WSQ certifiable courses mentioned above are eligible under this scheme.

Using the same example in Section 2.3, the SFEC calculation is as follows:

SkillsFuture Enterprise Credit (SFEC) Calculation SME Trainee Non-SME SC/PR >21 years Non-SME SC >= 40 years
Net Fee Payable (Example in Section 2.3) $ 270 $ 450 $ 270
SFEC claimable (90%) $ (243) $ (405) $ (243)
Eventual Out-of-pocket expense $ 27 $ 45 $ 27

For more details on the SFEC eligibility and claims process, please visit the SkillsFuture Enterprise Credit SFEC microsite.  Employers are only required to submit the final claims for the supportable programs that they have successfully applied for/attended by 30 June 2023.

Check out the SkillsFuture website for full details of the funding changes.

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