PM defends Jobs Credit
By Aaron Low
ST PHOTO: EDWIN KOO
View more photos
WORKERS will benefit from the Jobs Credit scheme in two ways and yesterday, Prime Minister Lee Hsien Loong highlighted them when he responded to its critics in Parliament.
One, it reduces the cost of a hiring a Singaporean by paying, on behalf of employers, part of the worker's contribution to his Central Provident Fund (CPF) savings, and two, it encourages companies to hire more Singaporeans.
In doing so, he said the scheme also deals specifically with an overriding worry of Singaporeans: whether they can keep their jobs in this downturn.
Mr Lee explained the scheme at length as he sought to reassure Singaporeans on how the ground-breaking policy will help save jobs.
.....
The Prime Minister noted that in last week's Parliament debate on the Budget Statement, most MPs supported the Budget but the points they raised showed that Singaporeans were fearful of losing their jobs.
The Jobs Credit, a key piece of the Budget, 'specifically addresses this concern', he said.
But some parliamentarians were sceptical, saying it benefits companies more than workers.
'Maybe they have misunderstood how the scheme works,' Mr Lee said as he launched into his explanation.
The $4.5 billion scheme gives companies a cash grant of 12 per cent of an employee's monthly wage, for up to $2,500. But this grant is only for the Singaporeans and permanent residents on their payroll.
Mr Lee said that by giving the grant, the Government is in effect paying for part of workers' CPF contributions, on behalf of employers. It works out to an average 9-point cut in the CPF contribution of an employer, who now pays a maximum of 14.5 per cent.
What it means, he said, is that the company pays less of the worker's salary while the worker gets the same amount of money. This reduces costs and makes the Singaporean worker more competitive, he added.
'This way, companies will be able to keep more of their workers instead of retrenching them. Without the Jobs Credit, companies might have to cut CPF or wages to save jobs.'
The other advantage is that the scheme reduces the cost of hiring Singaporeans, making 'it more attractive to hire Singaporeans rather than foreign workers'.
This will be true if and only if there is still demand/orders coming into the company AND the wage difference between local and non-local is less than 12%
However, Mr Lee was quick to add that 'we should not push out foreign workers as that would harm both businesses and Singaporean workers'.
'The Jobs Credit is a good way to encourage companies to hire more Singaporeans. Unions understand this, which is why they support the Jobs Credit,' he said, adding that the scheme is 'a major policy different from anything the Government had done before'.
In Parliament last week, labour MPs and unionists had shared several examples of how companies had deferred layoffs or retrenched fewer workers, or even added more jobs, because of Jobs Credit, he noted. 'I hope all Singaporeans will understand and support it as well,' he said.
At Yio Chu Kang, most residents apparently do, according to the chairman of its citizens' consultative committee.
Said Mr Lim Lee Meng: 'They tell me it is an innovative scheme that will slow down retrenchments.'
Mr Lim, you believe everything that is told to you? I tell you the Moon Goddess lives in the Moon with her rabbit!
In his speech, Mr Lee also urged Singaporeans to 'up-skill and re-skill' under the Skills Programme for Upgrading and Resilience, or Spur, which heavily subsidises the training of workers.
What should bankers and white collar workers be trained to become?? Taxi drivers? In Sinkapore only, PAPPIES and Ministars don't need retraining and don't need to be SPURred to do things.
.....
By Aaron Low
ST PHOTO: EDWIN KOO
View more photos
WORKERS will benefit from the Jobs Credit scheme in two ways and yesterday, Prime Minister Lee Hsien Loong highlighted them when he responded to its critics in Parliament.
One, it reduces the cost of a hiring a Singaporean by paying, on behalf of employers, part of the worker's contribution to his Central Provident Fund (CPF) savings, and two, it encourages companies to hire more Singaporeans.
In doing so, he said the scheme also deals specifically with an overriding worry of Singaporeans: whether they can keep their jobs in this downturn.
Mr Lee explained the scheme at length as he sought to reassure Singaporeans on how the ground-breaking policy will help save jobs.
.....
The Prime Minister noted that in last week's Parliament debate on the Budget Statement, most MPs supported the Budget but the points they raised showed that Singaporeans were fearful of losing their jobs.
The Jobs Credit, a key piece of the Budget, 'specifically addresses this concern', he said.
But some parliamentarians were sceptical, saying it benefits companies more than workers.
'Maybe they have misunderstood how the scheme works,' Mr Lee said as he launched into his explanation.
The $4.5 billion scheme gives companies a cash grant of 12 per cent of an employee's monthly wage, for up to $2,500. But this grant is only for the Singaporeans and permanent residents on their payroll.
Mr Lee said that by giving the grant, the Government is in effect paying for part of workers' CPF contributions, on behalf of employers. It works out to an average 9-point cut in the CPF contribution of an employer, who now pays a maximum of 14.5 per cent.
What it means, he said, is that the company pays less of the worker's salary while the worker gets the same amount of money. This reduces costs and makes the Singaporean worker more competitive, he added.
'This way, companies will be able to keep more of their workers instead of retrenching them. Without the Jobs Credit, companies might have to cut CPF or wages to save jobs.'
The other advantage is that the scheme reduces the cost of hiring Singaporeans, making 'it more attractive to hire Singaporeans rather than foreign workers'.
This will be true if and only if there is still demand/orders coming into the company AND the wage difference between local and non-local is less than 12%
However, Mr Lee was quick to add that 'we should not push out foreign workers as that would harm both businesses and Singaporean workers'.
'The Jobs Credit is a good way to encourage companies to hire more Singaporeans. Unions understand this, which is why they support the Jobs Credit,' he said, adding that the scheme is 'a major policy different from anything the Government had done before'.
In Parliament last week, labour MPs and unionists had shared several examples of how companies had deferred layoffs or retrenched fewer workers, or even added more jobs, because of Jobs Credit, he noted. 'I hope all Singaporeans will understand and support it as well,' he said.
At Yio Chu Kang, most residents apparently do, according to the chairman of its citizens' consultative committee.
Said Mr Lim Lee Meng: 'They tell me it is an innovative scheme that will slow down retrenchments.'
Mr Lim, you believe everything that is told to you? I tell you the Moon Goddess lives in the Moon with her rabbit!
In his speech, Mr Lee also urged Singaporeans to 'up-skill and re-skill' under the Skills Programme for Upgrading and Resilience, or Spur, which heavily subsidises the training of workers.
What should bankers and white collar workers be trained to become?? Taxi drivers? In Sinkapore only, PAPPIES and Ministars don't need retraining and don't need to be SPURred to do things.
.....
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