Rationale for Restricting ITE Progression Award to Graduates Pursuing Eligible Diplomas from 2024
Ministry of EducationSpeakers
Summary
This question concerns the rationale for restricting the ITE Progression Award (IPA) to graduates pursuing diplomas from 2024, as raised by Mr Gerald Giam Yean Song. Minister Chan Chun Sing explained the IPA aims to narrow the wage gap via a $5,000 PSEA top-up at enrolment and a $10,000 CPF OA top-up upon completion. Although pre-2024 graduates are excluded because they already enjoy better wages, those enrolled by 1 March 2024 will still receive the $10,000 completion top-up. Minister Chan Chun Sing highlighted alternative support for earlier graduates, including the Workfare Skills Support Scheme and the SkillsFuture Level-Up Programme. These initiatives, alongside heavy course fee subsidies at Institutes of Higher Learning, ensure consistent financial assistance for ITE graduates throughout their lifelong learning journeys.
Transcript
28 Mr Gerald Giam Yean Song asked the Minister for Education (a) what is the rationale for restricting the ITE Progression Award (IPA) to ITE graduates pursuing eligible diplomas from 2024 onwards; (b) how this aligns with the Government's emphasis on lifelong learning and workforce development; (c) whether the Ministry has assessed the equity of excluding pre-2024 diploma graduates and plans to review their inclusion; and (d) what steps are being taken to ensure consistent financial support for ITE graduates pursuing further education across all time periods.
Mr Chan Chun Sing: The Institute of Technical Education (ITE) Progression Award (IPA) was introduced in 2024 to address the growing wage gap between ITE's Nitec and Higher Nitec graduates and diploma- or degree-holders. It provides financial support to help ITE graduates upskill to a diploma earlier in their careers and boost their savings for longer-term goals, such as home ownership or retirement.
The two-step award supports ITE graduates to enrol in a diploma by providing a top-up of $5,000 to their Post-Secondary Education Account (PSEA) at the start of diploma studies and encourages them to complete their diploma with another top-up of $10,000 to the Central Provident Fund Ordinary Account (CPF OA) when they do so.
Eligible ITE graduates who were already enrolled in diplomas at Ministry of Education-funded institutions as of 1 March 2024 will still receive the $10,000 OA top-up under IPA after they complete their diplomas.
The IPA is part of the Government's broader suite of schemes that provide support for lifelong learning across various life stages. ITE graduates who had upgraded to diplomas before 2024 should already start to enjoy better employability and higher wages and are, therefore, not part of the target group for IPA. To support them to upskill further, there are other schemes, such as the Workfare Skills Support Scheme and the SkillsFuture Level-Up Programme, which provide financial support like training allowance during their course. Course fees are also heavily subsidised for Singaporeans at the Institutes of Higher Learning and for courses supported by SkillsFuture Singapore.