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Singapore Budget 2015 For Active Agers

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We looked through the announcements from Singapore’s Budget 2015 that was announced last week and highlight some key points that might impact you.

Learning At Every Age

SkillsFuture

 

 

 

 

 

Given higher opportunity costs – personal, time-based or from an employer’s perspective – for active agers to take on training, the SkillsFuture programme offers specific components to help the active ageing group. The programme and subsidies can help mid-career individuals upskill or reskill, contributing to their value in the employment market.

From 1 July 2015, Singaporeans aged 40 years old and above can receive a minimum of 90% course fee subsidy for WDA-funded courses. This will include modular courses in publicly funded post-secondary education institutions, and additional reductions in MOE-funded diploma and degree courses.

A range of flexible, modular and bite-sized learning options will be introduced taking into consideration the demands of working adults. The first slate of modular courses will be in key priority and growth sectors such as advanced manufacturing, logistics and aviation. The range of courses will be expanded over time to cover other sectors.

Active agers can tap on the new SkillsFuture Credit to defray the course fees. There will be no cap on the number of skills-based modular courses that SCs can be funded for.

Income Tax Rebate

All taxpayers will enjoy a one-off 50% tax rebate (capped at S$1,000) for personal income earned in 2014.

Changes To CPF Contributions

From January 2016, employees will see their monthly CPF salary ceiling increase from S$5,000 to S$6,000. The CPF salary ceiling is the maximum amount of a monthly salary that determines the CPF contribution of an employee.

For those earning S$6,000 or more, they will have a maximum CPF contribution of 20 percent of the salary ceiling, which is S$1,200. This is an extra S$200 CPF contribution each month. Employers will also contribute an extra S$170 more with the increase.

According to the Government, the extra CPF contributions will help to prepare employees for retirement.

For active agers aged 50 years old and more, they will receive additional CPF contributions:

Increase in CPF contribution rates for older workers from 1 January 2016

Employee’s age (years) Increase in contribution rates (% of wages)
Contribution by employer Contribution by employee Total
Above 50 to 55 +1 +1 +2
Above 55 to 60 +1 +1
Above 60 to 65 +0.5 +0.5

For those aged 55 and above in 2016, an additional one percent interest applied to the first S$30,000 in the CPF account. This is on top of the current extra one percent interest on the first S$60,000. This group of active agers will be earning up to six percent interest on their Medisave, Retirement and Special Accounts.

(Table taken from CPF website)

Donations enjoy more tax deductions

From 2015, tax deductions for donations to approved charities and non-profit organisations will increase to 300 percent of the amount donated.

 

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