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.

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.

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. 

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)?

• Coaching for Performance and Capability Development (CPD)
• Emotional Intelligence (EQ) for Transformational Leadership (EQT)
• Team Leadership for Performance and Results (TLP)
• Enhancing Coaching Capabilities through Reflective Practice and Mentor Coaching (MCR)
• Self-Mastery in Coaching for Mental Well-Being with Positive Psychology (SMW)
• Self-Mastery in Coaching: Building Relationships and Achieving Goals with Positive Psychology (SGR)

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. 

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.

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. Organisation registered or incorporated in Singapore AND
2. Employment size of not more than 200 OR
3. Annual sales turnover 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. 

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:

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.