Employers also asking for subsidies on AI upskilling in Budget 2025 proposal
The Singapore National Employers Federation (SNEF) is calling on the government to provide financial subsidies ahead of the Shared Parental Leave implementation next year.
Singapore will implement a 10-week Shared Parental Leave and the mandated two-week Paternity Leave starting April 2025 as part of the government's latest initiatives to boost the country's leave benefits.
But the SNEF pointed out that some businesses, especially small and medium enterprises (SMEs), may face operational constraints and incur additional overheads when their employees take up the expanded leave.
"SNEF recommends offering financial subsidies to help offset these costs, as well as a monthly allowance for employees who take on additional responsibilities during colleagues' leave," the SNEF said.
"Temporary flexibility in work pass approvals could also help businesses address manpower gaps and meet project deadlines without disruption."
The SNEF laid out the recommendations in its Budget 2025 Proposal, which it said aims to provide businesses with resources amid rising costs.
In its proposal, the SNEF also asked the government for further funding to help offset the costs burdening employers for training amid a widespread push to upskill.
It also requested for "greater subsidies" when it comes to AI-related training under the SkillsFuture Series.
"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.
Meanwhile, the SNEF also sought an extension to the Progressive Wage Credit Scheme beyond 2026 following the government's push to uplift lower-wage workers through the Progressive Wage Model (PWM) and the increase in Local Qualifying Salary (LQS).
According to the SNEF, extending the scheme would help defray the cost impact of the PWM and the increased LQS.
"Sustainable wage growth is key to business competitiveness and will ultimately achieve the tripartite goal of bringing LWW wages closer to the median by 2030," the SNEF said.
Tan Hee Teck, President of SNEF, said their recommendations aim to ease the financial pressures on businesses amid 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," Tan said in a statement.
