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PEOPLE FOR JOBS TRAINEESHIP PROGRAMME

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					             PEOPLE FOR JOBS TRAINEESHIP PROGRAMME


       People for Jobs Traineeship Programme (PJTP) provides an incentive to
encourage employers to make available suitable job opportunities for local
workers who are 40 years old and above and are making career transitions from
one job function to another. First launched as a pilot programme in June 2001,
the PJTP offers employers an incentive in the form of wage support in return for
putting in place traineeship/mentorship arrangements to help newly recruited
older workers with no relevant experience to fit into new jobs and work
environment.

2       Due to the worsening labour market conditions and the potential that the
programme had shown in getting employers to create and make available job
opportunities for older persons, the programme was scaled up and extended for
one year from 1 Nov 2001 with enhanced wage support as part of the
Government's Off-Budget measures in Oct 2001. This enhancement was
intended to also help displaced executives and professionals besides the lower
skilled workers. This programme has since been extended twice till 31 Dec 2004.

Financial Support under PJTP

3      In order to incentivise employers to recruit older workers under this
programme, the company is allowed to claim for wage support for each PJTP
worker recruited by the company. Currently, for every PJTP worker aged 40 to 49
years, the monthly wage support is 50% of monthly gross salary or $2,000 per
month, whichever is lower, for a period of up to 6 months. For those workers who
are 50 years old and above, there is an additional 3 months of wage support (ie
7th to 9th month) at 25% of gross salary or $1,000 per month, whichever is
lower.

Effectiveness of the programme

4     As at end-Feb 2004, there were more than 5,000 companies registered
under the programme, and in total more than 16,000 older workers placed in
employment.

Contact Person

Pek Teck Leong
Manager
Employment Facilitation Division
Singapore Workforce Development Agency
DID: 62364972
Email: pek_teck_leong@wda.gov.sg
             SUPPLEMENTARY RETIREMEMENT SCHEME (SRS)


      The Supplementary Retirement Scheme (SRS) is part of the Singapore
government’s multi-pronged strategy to address the financial needs of a graying
population.

2     It is a private-sector operated scheme that hopes to encourage
Singaporeans to save more for their old age. Unlike mandatory CPF savings
which are meant to provide for housing, medical and basic post-retirement
needs, participation in the SRS scheme is voluntary. Singapore Permanent
Residents and foreigners are also allowed to participate in the SRS scheme.

3      Participants can contribute a varying amount to SRS (subject to a cap) at
their own discretion. The contributions may be used to purchase a wide range of
investment products.

Implementation month/year

4      SRS was introduced on 1st April 2001.

Costs incurred

5     The SRS scheme is largely driven by the private sector and most of the
administrative costs are borne by them. There are currently three SRS operators:
Development Bank of Singapore (DBS) Ltd, United Overseas Bank (UOB) Ltd
and Overseas-Chinese Banking Corporation (OCBC) Ltd.

Target audience

6     There are two groups targeted:
       Singaporeans who are encouraged to set aside additional savings
         over and above those in the CPF, to supplement their post-retirement
         nest egg.
       Foreigners and PRs who will work and settle here for the long-term,
         with a need for post-retirement financial planning.

Details of the initiatives

7      The SRS is a tax-deferral scheme, where only 50% of the sum withdrawn
is taxable. For Singaporeans and PRs, penalty-free withdrawal can take place at
or after the statutory retirement age prevailing at point of first contribution. The
statutory retirement age is currently 62.

8      An SRS member’s SRS yearly contribution is capped by the formula:
SRS Contribution rate x Income Base, with the income base being that of the
preceding year. For example, the 2004 SRS contribution cap is based on the
SRS member’s 2003 income.

9       SRS contribution rate is set at 15% for Singaporeans and PRs; and 35%
for foreigners. 35% is based on the sum of the contribution rate for locals and the
prevailing employee CPF contribution rate of 20%.
10      More details of the SRS scheme can be found on the following websites.

MOF:
http://www4.gov.sg/mof/taxation/home_user/srs/tax_hme_srs.html

SRS FAQs:
http://app.mof.gov.sg/faq/showfaq.asp?category=Supplementary+Retirement+Sc
heme+%28SRS%29&subheading=Participation


Contact Person

Mr Chua Loo Lin
Manager, Public Affairs
DID : 63327407
Email : chua_loo_lin@mof.gov.sg
                                 PARENT RELIEF

       Parent relief is a tax relief that seeks to promote filial piety in Singapore,
given the aging population. It is a token sum given to a taxpayer who has
maintained his parents for the preceding year of claim, and is not meant to cover
all expenses incurred by the taxpayer in maintaining his parents.

Implementation Year

2      Parent Relief was first introduced in the 1960s.

Costs Incurred

3     In Year of Assessment 2001, the revenue loss arising from Parent Relief
was $125.48m.

Target Audience / Clients

4      Taxpayers who maintain their parents/ grandparents in Singapore.

Details of the Initiative

5      Parent relief can be claimed if all of the following conditions are satisfied :

      (a) the dependent must be living with the claimant in the same household
          in Singapore; or the dependent must be living in a separate household
          in Singapore and the claimant has incurred at least $2,000 a year
          towards the maintenance of the dependant; and

      (b) the dependant must be 55 years of age and above, or who is
          otherwise incapacitated from maintaining himself/ herself by reason of
          physical or mental infirmity; and

      (c) each dependant's income must not exceed $2,000 a year; and

      (d) no one else must be claiming any relief for supporting them.

6      The quantum of relief is as follows:

      - living in same household : $5,000
      - not living in same household : $3,500

7     An additional relief of $3,000 is provided for each handicapped parent/
grandparent.
Website

More details can be found on the IRAS Website (http://www.iras.gov.sg)

Contact Person

Mr Chua Loo Lin
Manager, Public Affairs
DID : 63327407
Email : chua_loo_lin@mof.gov.sg

				
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