THE Singapore National Employers Federation (SNEF) has called for the government to provide continued financial relief for businesses and to extend existing wage credit schemes in its Budget 2025 wish list.
Financial relief can be given through the corporate income tax and rental rebates as well as the Enterprise Financing Scheme, said SNEF on Tuesday (Dec 17).
“These measures will alleviate near-term cost pressures and give businesses the breathing space to invest in long-term strategic capabilities, which would ultimately make them more productive and support better wage growth for employees,” it said.
The government’s efforts to uplift lower-wage workers through schemes such as the Progressive Wage Model (PWM) and recent increases to the Local Qualifying Salary (LQS) are welcomed, yet wage increments need to be backed by productivity growth to be sustainable, said the federation.
It called for the Progressive Wage Credit Scheme to be enhanced and extended beyond 2026, to help defray the cost impact of the PWM and LQS.
Help with reskilling, older workers
To help offset employers’ costs for training workers, SNEF called for continued funding through the SkillsFuture Enterprise Credit – or an equivalent scheme – and increased absentee payroll.
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To encourage businesses to use artificial intelligence (AI), the federation also called for more subsidies for AI-related training under the SkillsFuture Series (Digital Economy). “A better trained workforce would be able to leverage AI to enhance productivity and innovation particularly in sectors facing manpower shortages and persistent job vacancies,” it said.
As for supporting senior workers, SNEF has asked the government to extend the Senior Employment Credit (SEC) beyond 2025 and to introduce “a new multi-generational grant to support succession planning, leadership renewal and fostering of cross-generational collaboration within the workplace”.
On the introduction of 10 extra weeks of parental leave, SNEF acknowledged that the government will fund the additional leave provisions, but noted that businesses may still incur additional overheads to engage temporary replacements.
To this end, SNEF recommended the government offer financial subsidies to offset the costs, as well to provide a monthly allowance for employees who take on additional responsibilities during a colleague’s leave.
It also called for temporary flexibility in work pass approvals, as this could help businesses address manpower gaps and meet project deadlines without disruption.
Said Tan Hee Teck, president of SNEF: “Our Budget 2025 recommendations aim to ease financial pressures as businesses face rising costs and evolving workforce needs.”
“We remain committed to collaborating with our tripartite partners to ensure Singapore’s economic resilience, business competitiveness, and inclusive workplaces for all.”
