
Employer group calls for more tax breaks, workforce upskilling schemes for Budget 2025
70% of employers support initiatives on reskilling and upskilling.
More tax breaks, enhanced workforce reskilling, and measures to manage extended parental leave are key priorities in the Singapore National Employers Federation’s (SNEF) recommendations for Budget 2025.
SNEF said the proposals are aligned with the broader national objectives of raising productivity, upskilling our employees and building a complementary foreign workforce that can address both the immediate and longer-term business challenges and the overall economy.
In a poll conducted by the group in October, over 70% of employers support initiatives on workforce reskilling and upskilling. SNEF said they recommend more funding through the SkillsFuture Enterprise Credit (SFEC) or an equivalent scheme and increased Absentee Payroll Funding to help offset the costs borne by employers for training.
In line with the National AI Strategy 2.0 (NAIS 2.0) to empower businesses to use AI, SNEF also suggests greater subsidies for AI-related training under the SkillsFuture Series (Digital Economy).
SNEF also stressed that there is a need for the government to support employers in developing and realising the potential of their senior workforce by extending the Senior Employment Credit (SEC) beyond 2025 and introducing a new multigenerational grant to support succession planning, leadership renewal and fostering of cross-generational collaboration within the workplace.
SNEF also cautioned that while it supports the Government’s efforts to uplift Lower-Wage Workers (LWWs) through initiatives like the Progressive Wage Model (PWM) and the recent increase in the Local Qualifying Salary (LQS), sustainable wage growth must be underpinned by productivity improvements. To achieve this, SNEF recommends extending and enhancing the Progressive Wage Credit Scheme (PWCS) beyond 2026 to help offset the cost impact of PWM and LQS, enabling productivity gains to align with mandated wage increases.
SNEF also 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. Temporary flexibility in work pass approvals could also help businesses address manpower gaps and meet project deadlines without disruption.
Building on these concerns, SNEF also highlighted potential operational challenges for businesses, particularly SMEs, with the introduction of 10 weeks of Shared Parental Leave and 2 weeks of mandated Paternity Leave from April 2025. Whilst the Government will cover the additional leave provisions, businesses may still face higher overheads from hiring temporary replacements.
To ease this burden, SNEF recommends financial subsidies to offset these costs and a monthly allowance for employees taking on extra responsibilities during colleagues’ leave. Furthermore, temporary flexibility in work pass approvals could help businesses manage manpower gaps and ensure project deadlines are met without disruption.
“Our Budget 2025 recommendations aim to ease financial pressures as businesses face rising costs and evolving workforce needs. In response to SNEF’s feedback on the impact of increased parental leave amid the tight manpower situation, we appreciate the Government’s decision to phase in the changes over two years, which will help alleviate operational challenges, especially for SMEs. We welcome the enhancements to the PWCS which will provide significant relief to employers facing rising cost pressures. We remain committed to collaborating with our tripartite partners to ensure Singapore’s economic resilience, business competitiveness, and inclusive workplaces for all,” Tan Hee Teck, President of SNEF said.
The government recently released an update inviting the public to share their views for the upcoming Budget 2025.