SKILLS DEVELOPMENT LEVY

Mr John De Payva asked the Minister for Trade and Industry whether he will consider (i) increasing the Skills Development Levy rate to 4% and (ii) revising the salary ceiling for the Levy to $1,500.

The Minister of State for Trade and Industry (Mr Goh Chee Wee) (for the Minister for Trade and Industry): Mr Speaker, Sir, the Government announced in February last year that the salary ceiling for the Skills Development Levy will be raised from $750 to $1,000, but the rate will remain at 1%. The revision will take effect from April this year.

We also said in the same announcement that the salary ceiling will need to be raised further in the future in order for the annual levy collection to match the annual disbursements of training grants from the Skills Development Fund (SDF). The SDF will continue to play a key role in the skills training and upgrading of our workers. It must therefore be adequately funded. My Ministry will continue to review the levy collection and funding requirements periodically, and make further revisions when necessary.

Mr John De Payva (Nominated Member): Sir, would the Minister be in a position to tell us how many people in Singapore would be contributing based on the impending salary ceiling of $1,000?

Mr Goh Chee Wee: With the salary ceiling of $1,000, it will cover about 50% of the workers.