Course fee subsidies for employer-sponsored training are paid by the Skills and Workforce Development Agency (SWDA) when a company sends staff on SWDA-approved courses. Every locally registered business gets baseline subsidies. SMEs (200 or fewer employees, or annual turnover of $100 million or less) receive the Enhanced Training Support for SMEs (ETSS) on top: up to 90% of course fees for Tier 1 courses and up to 70% for Tier 2 courses, for Singapore Citizen, PR and LTVP+ trainees. The subsidy is deducted automatically at registration, so there is no separate application.
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This guide is written for business owners, HR and finance managers who want to know exactly what they will pay before they book a course. It covers the SME and non-SME subsidy tables, how the course tiers work, how Absentee Payroll and the SkillsFuture Enterprise Credit stack on top, and the practical mistakes that leave companies paying full fees.
What are SWDA course fee subsidies?
Since 1 July 2026, SkillsFuture Singapore and Workforce Singapore have operated as one agency, SWDA. Employer training support that used to be described as “SSG funding” is now listed on SWDA’s employer portal, OurWorkforce. Our explainer on what the SWDA merger means for employer training grants covers the change in more detail.
There are three layers of course fee support for employer-sponsored trainees:
- Baseline subsidy: available to all locally registered businesses for SWDA-approved courses.
- Enhanced Training Support for SMEs (ETSS): an additional subsidy for SMEs, on top of the baseline.
- SkillsFuture Mid-Career Enhanced Subsidy (MCES): stronger support for Singapore Citizens aged 40 and above, relevant mainly to non-SMEs because SMEs already receive the higher ETSS rates.
SWDA publishes the combined result of these layers, which is what matters for budgeting. The tables below show those combined figures.
Who counts as an SME for ETSS?
To receive ETSS, your organisation must meet both of these conditions:
- Registered or incorporated in Singapore.
- Employment size of not more than 200, or annual sales turnover of not more than $100 million.
Either size test is enough: a company with 350 staff but turnover below $100 million still qualifies. Sole proprietorships that meet the criteria are eligible, and so are non-business entities such as voluntary welfare organisations and societies. Ministries, statutory boards and other government agencies are not eligible.
SWDA derives SME status from government data and applies the SME rate automatically. If your status is wrong, for example because recent turnover figures have not been picked up, you can submit a status application to SWDA for review.
Which employees qualify?
Course fee subsidies apply to employer-sponsored trainees who meet these conditions:
- The trainee is a Singapore Citizen, Singapore Permanent Resident or Long-Term Visit Pass Plus (LTVP+) holder.
- The course is fully paid for by the employer.
- There is an employer-employee relationship and the employer makes CPF contributions for the trainee.
Part-time Singapore Citizen and PR employees qualify, as long as you contribute CPF for them. Employment Pass and S Pass holders do not attract these subsidies, so a course for a foreign employee is paid at the full fee. LTVP+ holders are not eligible for subsidies on part-time and full-time MOE-funded full qualification programmes at ITE, the polytechnics and the autonomous universities.
How much funding can you get?
SME subsidy rates (baseline plus ETSS)
| Course tier | Singapore Citizen or PR | LTVP+ holder | Persons with disabilities |
|---|---|---|---|
| Tier 1 | Up to 90% | Up to 90% | Up to 95% (only for courses supported by SG Enable) |
| Tier 2 | Up to 70% | Up to 70% | Up to 70% |
Non-SME subsidy rates (baseline plus MCES)
| Course tier | Singapore Citizen aged 40 and above | Singapore Citizen below 40, or any PR | LTVP+ holder |
|---|---|---|---|
| Tier 1 | Up to 90% | Up to 70% | Up to 70% |
| Tier 2 | Up to 70% | Up to 50% | Up to 50% |
The practical point for a growing company: when you cross both SME thresholds, younger Singaporean and PR staff lose 20 percentage points of subsidy on every course. If you are near the line, check your status before committing to a large training plan.
What are Tier 1 and Tier 2 courses?
Tier 1 courses are those that deliver emerging skills or have a direct impact on employability. SWDA lists:
- SkillsFuture Series courses
- Courses that stack towards MOE-funded full qualifications offered by the Institutes of Higher Learning
- Workplace Literacy and Numeracy (WPLN) courses
Tier 2 covers all other SWDA-approved courses, including courses delivering skills in the Course Approval Skills List, Workforce Skills Qualification (WSQ) accredited courses (including regulatory and licensing courses for Progressive Wage Model sectors), and courses endorsed by Course Endorsement Bodies under a regulatory or professional development framework.
The tier is attached to the course, not to your company. Check the course listing in SWDA’s Course Directory for business before you book.
How do you claim the subsidy?
For most employers there is nothing to claim. SWDA’s process is:
- Find a course. Search SWDA’s Course Directory for business. All courses listed there are eligible for SWDA training subsidies.
- Register your employees with the training provider. SWDA asks employers to sign their employees up directly with the course provider, with the company paying the fee.
- Pay the nett fee. All applicable subsidies are deducted from the full course fee at registration. You pay the nett course fee plus GST to the provider. No application is needed unless your organisation’s status has changed.
- Claim Absentee Payroll after the course. Once the course is completed, you may claim Absentee Payroll funding for eligible trainees.
GST is charged on top and is not subsidised. The nett course fee before GST is your out-of-pocket expense for the purpose of the SkillsFuture Enterprise Credit.
How do Absentee Payroll and SFEC stack on top?
Absentee Payroll (AP) funding reimburses a fixed $4.50 per hour of attended training. SWDA states a cap of $100,000 per enterprise per calendar year. AP compensates you for the working time lost while staff are on course. Our Absentee Payroll claim guide walks through the claim steps.
SkillsFuture Enterprise Credit (SFEC) can offset up to 90% of the nett course fee for eligible employers. Timing matters this month. SWDA states that the current SFEC expires on 30 November 2026. A redesigned SFEC (Enhanced), with a fresh $10,000 credit for eligible employers, launches on 1 December 2026 and will offset costs upfront rather than by reimbursement. SWDA says further funding details will be announced later. Our article on the December 2026 SFEC reset explains what to do with remaining credit.
Example: an SME training three staff
Example (hypothetical): A 60-person logistics SME sends three warehouse supervisors on a 16-hour WSQ course (Tier 2) costing $2,000 per person before GST. Two supervisors are Singapore Citizens. The third is on an S Pass.
| Item | Citizen trainee (each) | S Pass trainee |
|---|---|---|
| Full course fee | $2,000 | $2,000 |
| SME subsidy (Tier 2, up to 70%) | Up to $1,400 | Not eligible |
| Nett course fee before GST | From $600 | $2,000 |
| Absentee Payroll (16 hours at $4.50) | $72 | Not eligible |
The company pays from $3,200 in nett fees for the three trainees ($600 plus $600 plus $2,000), plus GST, and can claim $144 in Absentee Payroll for the two Citizens. If the company still holds SFEC and the training is completed and claimed in time, SFEC could reduce the nett fee further. If the same course were Tier 1, each Citizen’s nett fee could drop to $200.
Documents and records checklist
The subsidy itself needs no application, but keep these records for Absentee Payroll, SFEC and your own audit trail:
- Course registration confirmation showing the trainee as employer-sponsored
- Training provider invoice showing the full fee, subsidy deducted, nett fee and GST
- Proof of payment by the company (the course must be fully employer-paid)
- CPF contribution records for each trainee
- Attendance and completion records, which drive Absentee Payroll
- Your SME status evidence (headcount or turnover), if you need to ask SWDA to review your status
Subsidised course fees and grant receipts also affect your tax computation. See our guide to the staff training tax deduction in Singapore for how training costs are treated.
Common reasons employers miss out
- The employee signed up and paid personally. That is not an employer-sponsored course, so the employer subsidy terms above do not apply. Register through the company.
- The employee paid part of the fee. SWDA requires courses to be fully paid for by the employer.
- No CPF contribution. Trainees must be employees for whom you contribute CPF. Freelancers and contractors do not qualify.
- Wrong SME status on record. If government data understates your SME status, you will be charged at non-SME rates until SWDA reviews it.
- Assuming every course is subsidised. Only SWDA-approved courses in the Course Directory attract these subsidies.
- Letting SFEC lapse. The current SFEC expires on 30 November 2026.
Frequently asked questions
Do I need to apply for ETSS?
No. SWDA applies the SME rate automatically at course registration, based on government data. You only need to act if your SME status is wrong.
Can I get subsidies for foreign employees on an Employment Pass?
No. Subsidies apply to Singapore Citizen, PR and LTVP+ trainees. In SWDA’s own worked example, the Employment Pass holder pays the full course fee.
Are part-time staff covered?
Yes. SWDA confirms part-time Singapore Citizen and PR employees are eligible if the employer contributes CPF for them.
Is GST subsidised?
No. You pay the nett course fee plus GST to the training provider. Subsidies are calculated on the course fee.
Can a society or charity get the SME rate?
Yes, if it meets the SME criteria. SWDA states that VWOs and societies, including those not registered with ACRA, can be treated as SMEs. Government bodies cannot.
Where are the official rules?
See SWDA’s pages on training subsidies for employers and Enhanced Training Support for SMEs. For a wider view of funding, see our directory of Singapore government grants for companies, and for funded consultancy to redesign roles, our guide to the Workforce Development Grant (Job Redesign+).
Information checked against official sources on 6 November 2026.
Free grant consultation: are SWDA course fee subsidies right for your company?
Raffles Corporate Services has in-house certified grant consultants who are experienced with Singapore grant applications and the full grant process, from checking eligibility and preparing the proposal and supporting documents to submitting claims and meeting the conditions after approval. We can arrange a free consultation to review your company and identify which grants, including SWDA course fee subsidies, may be applicable.
Email [email protected] or WhatsApp +65 8501 7133 to book a time. SWDA decides every application, and no consultant can guarantee approval.
Rachel Sim, Raffles Corporate Services