LEGAL UPDATES

Legislation

Estate Duty (Abolition) Act 2008 (A13/2008)

The Estate Duty (Abolition) Act 2008 (the 'Act') was passed in Parliament on 25 August 2008 and subsequently gazetted. The Act is deemed to have been in operation from 15 February 2008.

Pursuant to the Act, the Estate Duty Act was amended to abolish estate duty in Singapore. This initiative was announced in the Government's 2008 Budget Statement and aims to encourage wealthy individuals from all over Asia to bring their assets into Singapore, thus supporting the growth of the wealth management industry in Singapore.

Estates of persons who died on or after 15 February 2008 will not be subject to estate duty. The Estate Duty Act continues to apply in relation to persons who died before 15 February 2008.

Skills Development Levy (Amendment) Act 2008 (A20/2008)

The Skills Development Levy (Amendment) Act 2008 (the 'Amendment Act') came into operation on 1 October 2008.

The Amendment Act amended the Skills Development Levy Act (the 'Act') to change the basis on which the skills development levy (the 'SDL') is to be computed. By way of background, it is a statutory requirement under the Act for employers to make SDL contributions for employees who fall within the salary ceiling for levy contributions.

Previously, the SDL was chargeable at the rate of one per cent of the remuneration of any employee whose remuneration in any month is S$2,000 or less. With effect from 1 October 2008, the SDL will be chargeable on the remuneration of all employees, and the rate of the levy in respect of each employee will be:
1 0.25 per cent of the remuneration of that employee in any month (up to S$4,500 of the remuneration of that employee or such rate as the Minister may, by notification in the Gazette, prescribe); or

2 S$2, whichever is the greater.

Children Development Co-Savings (Amendment) Act 2008 (A28/2008)

The Children Development Co-Savings (Amendment) Act 2008 (the 'Amendment Act') was passed in Parliament on 21 October 2008 and came into operation on 31 October 2008. Some of the main amendments made to the Children Development Co-Savings Act (the "Act") are as follows:
1 Paid maternity leave: The period of paid maternity leave to which a female employee who satisfies the requirements stipulated in the Act is entitled will be extended from 12 weeks to 16 weeks.

2 Reimbursement for self-employed. The period for which the Government will reimburse a self-employed woman who meets the criteria set out in the Act for income lost by reason of her ceasing to be actively engaged in her trade, business, profession or vocation in connection with her delivery of a child ('self-employed woman') will be extended:
i from four weeks to eight weeks, in respect of her first or second confinement; and

ii from 12 weeks to 16 weeks, in respect of her third or subsequent confinement.

3 Maternity leave flexibility. A female employee and a self-employed woman will be given greater flexibility in determining when to take the last part of her maternity leave, by allowing her to take up to 48 days of maternity leave within the period of 12 months commencing from the day of her confinement.

4 Revised eligibility criteria for maternity benefits and protection. Section 9A of the Act has been amended to reflect the revised eligibility criteria for maternity benefits and protection for a female employee and a self-employed woman, whose confinement occurs or whose estimated delivery date (as certified by a medical practitioner) for her confinement is on or after 31 October 2008. This amendment entailed the removal of the existing requirement for a female employee or self-employed woman to have fewer than four other living children at the time of her confinement, and consequently the extension of maternity benefits and protection to a female employee or self-employed woman who has four or more other living children at the time of her confinement. The minimum period that a female employee must have served her employer, or self-employed woman must have carried on her trade, business, profession or vocation, to be eligible for maternity benefits and protection has been reduced from 180 days to 90 days.

5 Paid childcare leave. An employee will now be entitled to paid childcare leave of two to six days in a relevant period if he has served his employer for not less than three months and has any child who is below the age of seven years and who is or who becomes a qualifying child at any time during the relevant period. It is an offence for an employer to fail to pay an employee his salary during childcare leave or to fail without reasonable cause to not grant an application for such leave to those who are so entitled.

6 Unpaid infant care leave. An employee is now entitled to unpaid infant care leave of six days if he has served his employer for not less than three months and has a child under the age of two who is or who becomes a qualifying child. Refusal of such leave without reasonable cause is an offence.

Consequential amendments will be made to the Employment Act with respect to the changes brought about by the Amendment Act.

Elizabeth Wong
Allen & Gledhill LLP