Introduction
Since the start of the year, the entire world has faced a tumultuous time, and Singapore is not spared. Singaporeans from all walks of life have been impacted by this pandemic, some seeing a drop in income or even the complete loss of livelihood. This is why the focus is now on cutting down daily expenses, and finding an electricity retailer in Singapore with good rates can immensely help.
In these trying times, the Singaporean government has rolled out four budgets to soften the blow of the economic fallout caused by the global slowdown. The first budget, termed the Unity Budget, was announced in February and amounted to S$6.4 billion. Subsequently, the S$48 billion Resilience Budget was announced in March, aimed at bolstering the assistance for Singaporeans. Then in April, in line with the implementation of the circuit breaker measures, the S$5.1 billion Solidarity Budget was announced to help retain jobs during the four-week stay-home-order. As Singapore prepared to enter phase 2 of the Circuit Breaker, the final S$33 billion Fortitude Budget was announced in May to supplement the first three budgets.
These four budgets total up to S$92.5 billion. Within the budgets, there are many different measures to assist both businesses and individuals — which admittedly, can get confusing. Well, if you’re scratching your head like the rest of us, you’re in the right place. We break down how you can benefit from these budgets, whether you’re a recent graduate, young parent, mid-career worker, or self-employed person.
Recent Graduate
This year was supposed to be the first of your newfound “adult life”. Typically, graduates expect to land a job right out of school, and many of us look forward to earning a stable income to repay our student loans. However, with this pandemic, it’s no secret that jobs are hard to come by with many companies even retrenching existing employees.
The SGUnited Traineeships are a good way to start. Even though this is not full-time employment, it provides degree, diploma, and NITEC certificate holders an opportunity to gain working experience and develop professional skills. The traineeships last for up to 9 months and allowances range from $1,100 to $2,500, depending on qualifications. Alternatively, SGUnited Jobs Initiative has lots of employment opportunities, about 40,000 to be exact. They include industries such as supply chain and information and communications technology.
As for the financial burden of a student loan, not to worry. Your worries can be put to rest with the student loan repayment relief. This is a suspension of student loan repayment and interest charges for university and polytechnic graduates until May 2021.
For cash-strapped graduates, two cash payouts can alleviate that concern. As part of the Solidary Budget, all Singaporeans aged 21 years and above in 2020 can enjoy a one time $600 cash payout. Fresh graduates with no income are also eligible for the second $600 cash payout. In addition to the $300 GST voucher, this brings the total individual payout to a substantial $1,500.
Self-employed
Freelance workers such as artists, musicians, and taxi drivers have been especially badly affected during the pandemic. With the shuttering of entertainment outlets, the demand for services in the gig economy has also fallen drastically.
There are several initiatives to help. For starters, under the Self-Employed Persons Income Relief Scheme, persons with net trade income less than $100,000 are eligible for three $3,000 payouts every quarter. The Workfare Special Payment, meant for the bottom 20% of the workforce, grants another cash payout of $1,500 in July and October 2020. As for taxi and private hire drivers, the Special Relief Fund means that eligible drivers will receive $300 every month until September 2020. Furthermore, freelancers are also granted income tax deferral from May to July.
Mid-career worker
It’s not uncommon for people to spend decades building a career in a certain industry, then decide to do a mid-career switch to a different industry. Perhaps even more people are considering this, especially those from hard-hit sectors like tourism and hospitality who wish to switch to more stable sectors.
Well, if that’s you, there are initiatives to help you make that switch. For instance, all Singaporeans above the age of 25 will receive $500 in SkillsFuture credits. In addition to that, workers between 40 and 60 years old will receive another $500 in SkillsFuture credit. This will help mid-career workers learn new skills relevant to the new economic landscape.
Parents with young children
If you’re in your late 20s and early 30s, chances are that you’re holding a stable job with some mortgage to pay and young children to care for. As such, any hint of possible retrenchment is a heavy burden to bear.
To encourage the retention of employees, there are many initiatives within the budgets. The Jobs Support Scheme, for instance, helps employers reduce their wage bill. Businesses can receive up to 75% of the first $4,600 of gross monthly wages for each local employee up till October 2020. Further support is provided for aviation, tourism, and F&B industries, which have been the worst hit. Other measures such as Foreign Worker Levy, property tax, and rental waivers also aim to help businesses stay afloat and keep workers employed.
On top of preventing retrenchment, the government is also trying to encourage businesses to improve the skillsets of its workers. The Enhanced Training Support allows companies to be paid $10/hour to send employees on courses for up to 90% discount. All Singaporeans 25 and older will also receive a one-time $500 SkillsFuture credit top-up. That’s great news for those looking to upskill and become a more valued member of the company.
That said, in the unfortunate circumstance of retrenchment or the loss of at least 30% of income, the Temporary Relief Fund provides a one-time payment of $500 to help with necessities. For heavier losses of 30% of income or more for at least three consecutive months, the Covid-19 Support Grant provides a monthly $800 payout for three months. These are in addition to the previously mentioned payouts that individuals can receive. Furthermore, for each Singaporean parent with at least one Singaporean child younger than 20 in 2020, there will be a payout of $300.
Another must-know is the support available for families to reduce their household expenditure. For young parents with lots of bills and expenses, this is particularly helpful. The payouts range from $480 to $1000, depending on the type of HDB flat and the number of members in the household. Households will receive 1.5 to 3.5 months of Service and conservatory rebates, depending on household size.
Conclusion
To conclude, the four budgets are meant to be as comprehensive as possible to cover as many bases in our society so that everyone can be less burdened and have better peace of mind. From fresh graduates to families, there are payouts and relief packages to help us weather through this crisis together.