Overview of Senior Employment Credit (SEC), Enabling Employment Credit (EEC), and CPF Transition Offset (CTO) Programs

Senior Employment Credit (SEC)

The SEC program offers wage subsidies to Singapore employers hiring senior Singaporean workers. The aim is to assist businesses in managing the higher costs associated with the increased Retirement and Re-employment Ages. For wages paid from 1 January 2024 to 31 December 2027, employers receive up to 7% of wages for eligible Singaporean employees aged 60 and above earning below $4,000 a month, with higher support for older age bands. For wages paid in 2026 and 2027, the top 7% rate applies to workers aged 69 and above, in line with the higher Retirement and Re-employment Ages from 1 July 2026. The SEC was extended to 2027 in Budget 2026. Earlier rates were higher: up to 8% for wages paid in 2021 to 2023, when the scheme also covered workers aged 55 and above in 2021 and 2022.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

Enabling Employment Credit (EEC)

The EEC supports the employment of persons with disabilities by providing wage offsets to employers. This applies to local employees aged 13 and above with disabilities earning below $4,000 per month. Employers can receive up to 20% of the monthly wages, capped at $400 per employee. Additionally, if these employees have not been working for at least six months, employers are eligible for an extra wage offset of up to 20% (capped at $400 per month) for the first nine months of employment.¹ The EEC is available until 2028, following its extension in Budget 2025. On 4 October 2026, the Ministry of Manpower said the EEC will be enhanced; the details had not been published by IRAS at the time of writing, so check the IRAS page for any changes.

¹In April 2023, the Enabling Employment Credit (EEC) was improved by raising the additional wage offset from 10% to 20% and increasing the monthly cap from $200 to $400. Additionally, the support period was extended from six to nine months.

CPF Transition Offset (CTO)

The CTO program helps businesses offset the increase in CPF contribution rates for senior workers. The government covers 50% of the annual increase in employer CPF contributions for Singaporean and Permanent Resident workers aged 55 to 70. This offset is based on the employees’ monthly wages², up to the CPF salary ceiling. The CTO was extended to 2027 in Budget 2026.

²Gross monthly wages account for the employee’s CPF contributions but do not include the employer’s CPF contributions.

Eligibility for SEC, EEC, and CTO

• SEC: Available to employers with Singaporean employees aged 60 and above, earning below $4,000 monthly, with timely CPF contributions. Employees who qualify for the EEC do not also receive the SEC.
• EEC: Available to employers hiring Singaporean or Permanent Resident persons with disabilities aged 13 and above, earning below $4,000 monthly, with timely CPF contributions.
• CTO: Available to employers with local employees aged above 55 to 70, with timely CPF contributions.

Business owners³ or employers operating in a personal capacity⁴ are not eligible for these schemes, even if they contribute to CPF.

³Business owners are defined as follows:
a. Sole proprietors of sole proprietorships
b. Partners in partnerships, including general partnerships, limited liability partnerships, and limited partnerships
c. Individuals who are both shareholders and directors of a company, as per the definition of a director in Section 4(1) of the Companies Act. For companies limited by guarantee, this definition also includes employees who serve as both members and directors of the company.

⁴Employers operating in their capacity include but are not limited to, hawkers without a Unique Entity Number (UEN) and those employing local personal drivers or domestic helpers.

List of excluded employers

Local government agencies, international organizations, and businesses that are not registered in Singapore are not eligible for these schemes.

1. Local Government Agencies including Organs of State, Ministries and Departments, Statutory Boards
2. Government and Government-Aided Schools
3. PA Services and Grassroots Units
4. High Commissions, Embassies, Trade Offices, Consulate
5. Unregistered Local/Foreign Entities
6. Foreign Military Units
7. Representative offices of:
   1. Foreign companies
   2. Foreign Government Agencies
   3. Foreign Trade Associations/ Foreign Chambers/ Foreign Non-profit Organisations
   4. Foreign Law Practices
8. Bank Representative Offices/Insurance Representative Officers/Other Financial Representative Offices (registered with MAS); News Bureaus (which are representative offices);
9. International Organisations
10. Entities which pay CPF but are not registered in Singapore

How do employers apply for the payouts?

Employers do not need to apply for the payouts. The Inland Revenue Authority of Singapore (IRAS) notifies eligible employers of the amount payable by post, and employers can also log in to myTax Portal to view an electronic copy of the letter. IRAS is refreshing its grant digital services from end-December 2026: from 2 November 2026, Corppass administrators should assign the new SCHEMES & GRANTS (PAYMENT) and/or SCHEMES & GRANTS (GRANT MANAGEMENT AND ASSESSMENT) authorisation to the staff who handle these payouts.

When will employers receive the payouts?

For wages paid from January to June, payouts will be issued to employers in September of the same year. For wages paid from July to December, payouts will be distributed in March of the following year.

How do employers receive the payouts?

In line with Singapore’s Smart Nation initiative, all payouts will be made through GIRO or PayNow Corporate, with no cheques issued. Payouts will be automatically credited to the employer’s GIRO bank account for Income Tax/GST. Employers who do not have a GIRO account will receive the payout in their bank account registered with PayNow Corporate. Employers not yet signed up for GIRO or PayNow Corporate must do so to receive their payouts.

Appeals and Compliance

Employers have up to two months from the month of payout to lodge an appeal, using the SEC, EEC or CTO appeal form on the IRAS scheme page; late appeals are not considered. The government strictly monitors and enforces compliance with these programs, with severe penalties for abuse, including possible imprisonment and fines. Reports of any malpractice can be submitted to IRAS confidentially.

Information checked against official sources on 6 November 2026.

If you have any questions or need further assistance with company compliance in Singapore, please do not hesitate to contact our team. You can reach the Raffles Corporate Services team via email at [email protected].

Yours sincerely,
The editorial team at Raffles Corporate Services

For a related funding option, see wage support through the Uplifting Employment Credit for hiring ex-offenders.