The ITE Progression Award (IPA), introduced in 2024, aims to help Institute of Technical Education (ITE) graduates narrow the wage gap between diploma- and degree-holders and those with Nitec or Higher Nitec qualifications, according to Education Minister Chan Chun Sing.
Responding to questions raised by Workers’ Party MP Gerald Giam on 5 February 2025, Mr Chan explained the rationale for restricting eligibility to ITE graduates pursuing diplomas from 2024 onwards.
The award provides financial assistance in two stages: a $5,000 top-up to the graduate’s Post-Secondary Education Account (PSEA) upon enrolling in an eligible diploma programme and a $10,000 top-up to their Central Provident Fund-Ordinary Account (OA) upon completing the diploma.
This structure aims to support early upskilling and long-term financial stability, such as savings for home ownership or retirement.
For ITE graduates already enrolled in diploma programmes at Ministry of Education-funded institutions as of 1 March 2024, the second-stage $10,000 top-up to their CPF-OA will be granted upon diploma completion.
However, those who completed their diplomas before 2024 will not be eligible for the award. Mr Chan explained that the IPA focuses on a specific group: recent ITE graduates who have yet to upgrade to diploma-level qualifications.
The policy is designed to help them improve employability and earnings earlier in their careers, which the government sees as critical to bridging wage disparities.
Graduates who obtained diplomas before 2024 were excluded because they should already be experiencing better employment outcomes and higher wages.
In response to concerns about alignment with the government’s emphasis on lifelong learning, Mr Chan highlighted several existing schemes for pre-2024 diploma graduates and working professionals.
These include the Workfare Skills Support Scheme and the SkillsFuture Level-Up Programme, both of which provide financial aid and training allowances. Additionally, course fees at Institutes of Higher Learning (IHLs) and other approved training providers under SkillsFuture Singapore are heavily subsidised for Singaporeans.
He reiterated that the IPA is part of a larger set of initiatives supporting lifelong learning, workforce development, and financial security.
The targeted design ensures that resources are allocated efficiently to those who need early support for upskilling. Mr Chan also pointed out that the government regularly reviews its financial support schemes to ensure they remain effective and equitable in promoting skills upgrading.
While the Ministry has no immediate plans to extend the IPA to pre-2024 diploma graduates, the range of alternative schemes aims to provide consistent support across all time periods.
Mr Chan encouraged individuals to explore the various lifelong learning options available, noting that further reviews would be undertaken as needed to meet Singapore’s evolving workforce development needs.
