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Working individuals are entitled to earned income relief (EIR) to reduce their chargeable income. The amount of relief claimed depends on an individual's age. The relief is increased for handicapped workers.
To encourage elderly workers to remain employed and to provide support to handicapped workers, the Government has proposed to increase the relief by doubling the current amount. The table below shows the current and revised amount of the reliefs:
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| Below 55 |
$1,000 |
$2,000 |
$1,000 |
$4,000 |
| 55-59 |
$3,000 |
$5,000 |
$6,000 |
$10,000 |
| 60 and above |
$4,000 |
$6,000 |
$8,000 |
$12,000 |
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YA 2013
The proposed change would certainly help to increase after-tax earnings and also provide an incentive for older Singaporeans to stay employed or rejoin the workforce.
In line with the policy to encourage older Singaporeans to stay employed, it would been more attractive if the Government could also remove the requirement that a parent must not have income of more than $4,000 for the year in order for a child to claim parent relief.
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