The enhanced funding is to encourage SMEs to send their employees for training. This was based on feedback from SMEs and industry associations who identified training and upgrading as a key area where they hoped to receive Government support.

Past studies have shown that SMEs were less likely to send their workers or themselves for training compared to larger companies.

The enhanced training support is extended to local¹ employees of SME establishments (hiring not more than 200 employees) registered or incorporated in Singapore. These employees must be fully sponsored by their employers to attend training. In addition, WDA will work with industry associations and agencies so that self-employed persons can also benefit from the enhanced training support through targeted programmes.

More than 8,000 courses fall under this scheme. This includes certifiable courses supported by WDA and academic CET courses offered by the five Polytechnics/Institute of Technical Education. The three-year initiative took effect from 1 July 2012. This initiative is expected to cost the Government about $30.5 million per year and benefit approximately 8,000 SMEs and 65,000 workers annually.

The enhanced training support scheme includes the following (Details appended as Table 1):

A) Higher Course Fee Funding

SMEs will enjoy subsidies of 90% of the course fees when they sponsor their employees for the above-mentioned CET courses. All employers of workers who meet the eligibility criteria for Workfare Training Support (WTS) scheme will continue to receive course fee funding under the WTS scheme².

B) Increased Absentee Payroll Cap

In addition to higher course fee funding, SMEs can also claim absentee payroll funding of 80% of basic hourly salary at a higher cap of $7.50 per hour, a significant increase over the normal cap of $4.50 per hour. All employers of workers who meet the eligibility criteria for Workfare Training Support (WTS) scheme will continue to enjoy absentee payroll funding under the WTS scheme².

Table 1: Enhanced Training support for SMEs

^[1] For academic CET courses offered by the five Polytechnics/Institute of Technical Education, the enhanced training support will only be extended to Singapore Citizens (SCs).
^[2] At present, under the Workfare Training Support (WTS) scheme, employers who sponsor their employees (Singapore Citizens aged 35 years and above, and earning up to $1,700 per month) are eligible for course fee and absentee payroll funding at 90%-95% for WSQ training. With effect from 1 July 2013, the monthly income cap will be raised to $1,900.

SMEs which meet all of the following criteria can qualify for the enhanced training support:

The following types of training are covered under the Enhanced Training Support for SMEs:

• All certifiable courses supported by WDA
  
• Academic CET courses at the Polytechnics / ITE
  

The higher funding will apply for training which commences on or after 01 July 2012. You may wish to view the library of courses available on www.skillsconnect.gov.sg

Application for the enhanced funding will be administered through SkillsConnect. SMEs can submit applications and claims through the online SkillsConnect platform and enhanced funding will be awarded to those who meet the eligibility criteria. The normal submission guidelines will apply. The application can be submitted from up to 6 months before the start of training until up to 30 days after the course start date.