As part of the 2011 Budget Initiatives, the Government has introduced a Special Employment Credit (SEC) to encourage employers to attract and retain older low-wage Singaporeans. The one-off SEC will also help employers adjust to the re-employment legislation that will come into force in 2012.

 

Eligibility

The SEC will be paid to employers of Singaporean employees aged above 55 and earning up to $1,700 a month. Please refer to Table 1 for the payment structure. The payment will be made twice a year, in March and September, for eligible employees on the payroll anytime between January 2011 and December 2013.

 

Age

Above 55 to 60

Above 60

SEC Payout

* up to 50% of employer CPF contributions

* up to 80% of employer CPF contributions

* The exact amount depends on the age and income of the Singaporean employee.

Employers making regular CPF contributions for their employees need not take further action to receive the SEC. CPF Board will automatically assess their eligibility. Eligible employers will receive notification letters from CPF Board in September 2011 indicating the date and amount of the first payment. This payment applies to eligible employees on the payroll between January and June 2011.

Payment

Employers will receive the SEC in their bank accounts for the GIRO payment of CPF contributions. Employers without a valid GIRO arrangement with CPF Board will receive the SEC by cheque.

Please visit the SEC website