Temporary Employment Credit (TEC) is a government scheme in Singapore aimed at providing financial support to businesses to help offset the costs of hiring older Singaporean workers and re-employing eligible Singaporean workers aged 67 and above. Understanding the Temporary Employment Credit scheme is important for businesses to leverage available incentives and support their workforce planning strategies.

Overview of Temporary Employment Credit (TEC)

The Temporary Employment Credit scheme was introduced by the Singapore government to encourage businesses to hire and retain older Singaporean workers, thereby promoting age inclusivity in the workforce. Key points about the TEC scheme include:

  1. Financial Support: Under the TEC scheme, eligible employers receive financial credits from the government to offset part of the wages paid to eligible older Singaporean workers aged 55 and above.
  2. Eligibility Criteria: To qualify for TEC credits, employers must meet specific eligibility criteria, including hiring and retaining eligible Singaporean workers aged 55 and above, as well as re-employing eligible Singaporean workers aged 67 and above.
  3. Calculation of Credits: TEC credits are calculated based on a percentage of the wages paid to eligible older Singaporean workers, subject to annual wage caps and other qualifying conditions specified by the government.

Key Features and Benefits

  • Support for Older Workers: The TEC scheme provides financial support to businesses to incentivize the hiring and retention of older Singaporean workers, promoting age diversity and inclusivity in the workforce.
  • Cost Reduction: By offsetting part of the wages paid to eligible older workers, the TEC scheme helps businesses reduce their labor costs, making it more financially viable to employ and retain experienced workers.
  • Workforce Planning: The TEC scheme encourages businesses to develop and implement effective workforce planning strategies that prioritize the recruitment and retention of older workers, contributing to a more sustainable and resilient workforce.

Application Process and Compliance

  • Application Procedure: Employers can apply for TEC credits through the government’s designated online portal, providing the necessary documentation and information to support their claims.
  • Compliance Requirements: Employers must comply with the eligibility criteria and reporting requirements stipulated by the government to qualify for TEC credits. Failure to meet compliance obligations may result in the forfeiture or clawback of credits.

The Temporary Employment Credit (TEC) scheme plays a significant role in supporting businesses in Singapore to hire, retain, and re-employ older Singaporean workers. By understanding the features, benefits, and compliance requirements of the TEC scheme, employers can leverage available incentives to strengthen their workforce planning strategies and promote age inclusivity in the workplace.