35% - 45% Salary Support for your new hire for 1 years
March 11, 2020
Want to expand your business by hiring new talent but need some support to fully prepare them for the job? Fortunately for us, there's a government initiative for that called the Professional Conversion Programme (PCP) Place-and-Train Programme.
The PCP Place-and-Train Programme is a government initiative under SkillsFuture Singapore to help fashion business gain 35 - 45% salary support for their new hires and bridge industry skill gap.
UPDATE: From 1st Sept 2020,
Job Growth Incentive (JGI) Salary Support Scheme implemented by the government can be used alongside the PCP Salary Support Scheme.
Employers that increase their overall local workforce between September 2020 to February 2021 (inclusive) will receive Government support. To be eligible for the JGI, there must be an increase in overall local workforce size AND increase in local workforce size earning ≥$1,400/month, compared to the August 2020 local workforce. The support is 25% (or 50% for mature local hires aged 40 and above) of the first $5,000 of gross monthly wages paid to all new local hires. Government support will be provided for 12 months from the month of hire, if employers continue to meet the eligibility criteria. Read more here
The objectives of the PCP salary support initiative are:
To support fashion businesses in growing and scaling their business by alleviating their salary expenses for up to one year.
To support fellow Singaporeans looking to re-skill and take on new jobs in different sectors.
To encourage employers to hire and re-skill unemployed Singapore Citizens or PR who have been unemployed for > 6-months.
Your business and your candidate are eligible to join this initiative if it fulfils the following requirements:
Business is registered in Singapore and is in the textile and fashion industry.
Candidate is a Singapore Citizen or PR with at least a diploma qualification.
New hire must have a change in job scope from their previous role.
An existing employee who has worked for 3-months or less can be put on the programme if they fulfil the above criteria.
Individuals with no connections to the PCP participating company: I.E. Shareholder, individual who are related to the owner (wife, brother)
An existing employee who has worked for 3-months or less can be put on the programme if they fulfil the above criteria
How does it work?
While eligible companies enjoy a salary support of 35 - 45% for their new hires for 12-months, they are required to sponsor their candidate for professional training under TaF.tc by completing any one of our 3 Diploma ProgrammesOR any of our 15 professional WSQ Short courses within their first 12 months of employment. Course schedule can be customised to include part-time classes.
The courses have to be fully paid by the company - but on top of the 70% government funding for most of our courses, eligibleSME companies are able to claim an additional 20% grant for each course via Skillsconnect after the completion of each module. Effectively, that's a 90% funding on all courses!
In a nutshell, here's how companies can visualise their cost and savings:
Companies can either enlist the help of TaF.tc to recommend graduates or embark on their own search for a candidate that is a good fit for their organisation.
2. Evaluation and on-boarding. TaF.tc will verify the eligibility of the candidate. Thereafter, we will work with the direct supervisor to plan a 1-year work-study schedule for the candidate. Lastly, we will conclude with a PCP contract for the company.
3. Programme kick-off: Register your new hire into TaF.tc’s courses and start applying for grants via SkillsConnect within 30 days from every course start date. You must submit the claim within 120 days from the course end dates. TaF.tc will disburse salary support quarterly once the required documents (OJT & Payslip) are furnished.
Arrange a 20-minute callhere with a programme advisor to build a plan for your organisation!
What is defined as a job conversion? There must be an element of job conversion where the candidate undergoes a change in job scope from one to another. However, if the candidate has been unemployed for more than 6 months, you can hire them and still qualify for the training grant and salary support.
Is there a cap on the salary for the salary support? Salary support is 35% - 45% of basic monthly salary capped at $4,000 per eligible trainee per month.
Can I convert my existing employees for the Professional Conversion Programme? The criteria for an in-house conversion (i.e., place an existing employee under the programme) is that the company is in the process of downsizing and retrenching staff, and the programme’s intent in this case would be to help the company retain its staff by re-skilling them for a different role. Companies are able to make an appeal if they would like to extend this programme to their existing employees. The requirements are: 1) Employee must have a major change in their job responsibility, and 2) Employers can write an appeal together with their financial documents for us to appeal with our governing partners, subject to approval.
Can I hire fresh graduates from university or polytechnics? Unfortunately, you can't. The candidate must have worked before to qualify for the Place and Train programme.
How can I tell if I'm eligible for the 45% salary support? 45% salary support is reserved for candidates who are mature or long-term unemployed PMETs. Mature is defined as PMETs who are aged 40 and above from the date of programme commencement. It is usually only given to a more senior paid executive. Do check in with us if your candidate is eligible.
What happens if either party terminates the 12-month minimum service period? If company terminates, candidate is discharged from all PCP obligations. If candidate quits, they are liable to pay the company the penalty as per bond signed. If there are modules yet to be completed, TaF.tc can exercise its right to collect the unconsumed, unfunded course fee from the company.
Can I claim absentee payroll if the candidate attends full-day weekday courses? Companies will not be eligible for absentee payroll since they are already supported with the salary support programme.
How will the salary support be reimbursed? 1) Upon submission of supporting documents (monthly payslip and On-the-Job Training report), the company will receive disbursement of salary support from TaF.tc on a quarterly basis. TaF.tc financial year ends on 31 December. To claim the additional 20% ETSS grant. Follow the instructions here!
What are the roles I can hire? You can only hire for PMET positions, not for rank-and-file positions like retail sales staff.
Matthew Ong is the Chief Revenue Officer at TaF.tc. He is responsible for all activities that generate revenue. As a CRO, he coordinates with marketing, sales and the customer success team to ensure that our prospects and students gain the most value and outcomes out of their time at TaF.tc. He is a proud leader of 4 great sales reps; Gabriel William, Wilson Yen, Zhang Meng Qian, Vanessa Seah, and is obsessed with people and self-development. During his free time, he enjoys going for runs and solving problems on a rock wall.