Around 6,000 employees to be eligible for scheme annually
Singapore's newly announced financial support scheme for retrenched employees will begin in April 2025, according to the Ministry of Manpower (MOM).
The scheme, SkillsFuture Jobseeker Support (JS), will provide involuntarily unemployed individuals $6,000 to ease their burden and prevent them from rushing into new jobs.
"We estimate that around 60,000 Singapore residents will be eligible for the scheme per year, which will account for more than 60% of involuntarily unemployed persons," MOM said in a statement.
According to the ministry, the payouts will be distributed to employees over six months.
Involuntarily displaced employees will first receive $1,500 in the first month of support, tapering down to $750 in the last three months of the scheme.
Source: Ministry of Manpower
The JS scheme will focus on lower- and middle-income individuals, specifically those who were earning an average of $5,000 a month or less. It will also target those facing more difficulties in their job search.
"Applicants must be employed for at least six months in the past twelve months prior to the application for support," MOM said.
To qualify for the payouts, MOM said these individuals need to actively search for a new job, such as applying for organisations, attending career coaching, or participating in eligible training courses.
"The job search condition provides flexibility to individuals to customise their job search efforts. More details on the job search conditions will be shared closer to April 2025," the ministry stated.
MOM further clarified that individuals who have been involuntarily unemployed for more than six months in the past 12 months would not be eligible.
"However, when the JS scheme is launched in April 2025, we will provide a one-off concession for Singapore citizens who became involuntarily unemployed on or after 1 April 2024 and remain unemployed," it said.
The new scheme comes after retrenchments in Singapore more than doubled in 2023, surging to more than 14,320, mainly due to reorganisation or restructuring, according to MOM.
The Singapore National Employers Federation (SNEF) also welcomed the government's upcoming scheme, noting the potential gains from skilled employees.
"Employers will benefit from finding better-fit and better-skilled employees that meet their business needs through the various Government support schemes, including the new JS Scheme," the SNEF said in a statement.
According to the SNEF, employers are eager to maximise the workforce potential by tapping into those who are involuntarily unemployed in Singapore.
However, they are concerned that the talent pool may not be equipped with the right skills or the right information on available suitable jobs.
"Hence, the active support measures under the JS Scheme, such as career coaching and employment facilitation, would help jobseekers to find jobs that are suitable for them and match them with the relevant employers," the SNEF said.
