The Special Employment Credit (SEC) is a government initiative in Singapore aimed at providing financial support to employers who hire older Singaporean workers and persons with disabilities (PWDs). Understanding the Special Employment Credit scheme is important for businesses to leverage available incentives and support their efforts in inclusive hiring practices.
Overview of Special Employment Credit
The Special Employment Credit scheme was introduced by the Singapore government to encourage employers to hire and retain older Singaporean workers aged 55 and above, as well as persons with disabilities. Key points about the Special Employment Credit scheme include:
- Financial Support: The SEC provides employers with wage offsets or cash grants to help defray the costs of employing eligible older workers and PWDs. This financial support aims to incentivize businesses to hire and retain these segments of the workforce.
- Eligibility Criteria: To qualify for the Special Employment Credit, employers must meet specific eligibility criteria, including employing eligible older workers aged 55 and above who earn up to a certain monthly wage ceiling, as well as employing PWDs who meet defined criteria.
- Calculation of Credits: The SEC provides employers with wage offsets or cash grants, calculated based on a percentage of the monthly wages of eligible older workers and PWDs, subject to annual wage ceilings and other qualifying conditions.
Key Features and Benefits
- Support for Inclusive Hiring: The SEC scheme promotes inclusive hiring practices by providing financial support to employers who hire older workers and persons with disabilities, fostering age diversity and disability inclusion in the workforce.
- Cost Reduction: By offsetting part of the wages paid to eligible older workers and PWDs, the SEC scheme helps businesses reduce their labor costs, making it more financially viable to employ and retain experienced workers and individuals with disabilities.
- Workforce Diversity: The SEC scheme encourages businesses to tap into the skills and experience of older workers and PWDs, contributing to a diverse and multi-generational workforce that enhances innovation, productivity, and business resilience.
Application Process and Compliance
- Application Procedure: Employers can apply for the Special Employment Credit through the government’s designated online portal or by submitting relevant documentation to the relevant government agencies.
- Compliance Requirements: Employers must comply with the eligibility criteria, reporting requirements, and other conditions stipulated by the government to qualify for the SEC. Failure to meet compliance obligations may result in disqualification or clawback of credits.
The Special Employment Credit (SEC) scheme plays a vital role in supporting businesses in Singapore to hire and retain older workers and persons with disabilities. By understanding the features, benefits, and compliance requirements of the SEC scheme, employers can leverage available incentives to strengthen their inclusive hiring practices and contribute to building a more diverse and resilient workforce.