Important Changes in HR Regulations from January 1st, 2023

In this month’s HRM Newsletter, we would like to share with you the following changes relevant to HR practitioners that will be effective from January 1st, 2023. We hope that this information will be of some help to you.

1. Companies with incentive schemes tied to utilisation of statutory sick leave will face enforcement action

From January 1, 2023, companies that have incentive schemes that are tied to statutory sick leave utilisation will face enforcement action, stated the Ministry of Manpower. 

Prohibited incentive schemes
Company MUST NOT:

• Provide incentive to employees for not taking any statutory paid sick leave for any period of time.
• Offer the encashment of unused statutory paid sick leave.
• Use the number of paid sick leave days taken as “demerit points” during appraisal and promotion.

Permissible Incentive schemes 
Companies CAN:

• Provide Incentives for not taking no-pay leave.
• Provide Flexible benefits (e.g. covering medical treatment) that are encashed at the end of the year if not used.
• Provide incentive for hitting key performance indicator (e.g. incentive for handling at least X calls per month, incentive for selling Y quantity of products)

For further advice on whether an incentive scheme is permissible, companies can approach SNEF (Singapore National Employers Federation) or NTUC (National Trade Union Congress) for unionised companies.

Source:
Ministry of Manpower: Can incentive schemes be tied to statutory sick leave utilisation? 

2. Tightening of S Pass quota for industries including manufacturing, construction, processing and marine shipyard

S Pass quota, which has been gradually reduced since 2021, will be further reduced from 18% to 15% from January 1, 2023 for industries including manufacturing, construction, processing and shipbuilding.
Ministry of Manpower: Upcoming changes to S Pass eligibility 

To check your company’s current S Pass quota, please refer to the “Calculate your quota” page below.
Ministry of Manpower: S Pass Quota and Levy Requirements

Disclaimer: Please use the information provided in this newsletter at your own discretion and risk. We are not responsible for any losses incurred by users in relation to the information provided in this newsletter and we seek your understanding.