The Uplifting Employment Credit (UEC) is a Singapore Government wage offset, paid by IRAS, for employers who hire local ex-offenders. It covers Singapore Citizen or PR ex-offenders earning below S$4,000 a month who were released within three years before starting the job and were hired between April 2023 and December 2028. The employer receives up to 20% of the employee’s monthly wage, capped at S$600 a month, for the first nine months of employment, so up to S$5,400 per hire. Employers must have made timely CPF contributions.
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.
What is the Uplifting Employment Credit?
The UEC was introduced at Budget 2023 to encourage employers to give ex-offenders a fair chance at stable work. Budget 2025 extended it so that it now applies to ex-offenders hired from April 2023 to December 2028.
It works in the same way as the other IRAS wage credits, such as the Senior Employment Credit and the Enabling Employment Credit. You pay the employee’s salary and CPF as normal, and IRAS later pays your company a percentage of the wages. There is no grant agreement, no project and no milestones. Our guide to the SEC, EEC and CPF Transition Offset payouts explains those related credits.
Who is eligible?
| Condition | Requirement |
|---|---|
| Employee’s status | Singapore Citizen or Permanent Resident ex-offender |
| Release date | Released within three years before the start of employment with you |
| Hiring date | Hired from April 2023 to December 2028 |
| Wage | Monthly wage below S$4,000 |
| CPF | Employer has made timely CPF contributions for the employee |
| Employer | A business registered in Singapore and not on IRAS’s exclusion list |
Who is excluded?
- Business owners. Wages paid to a sole proprietor, a partner, or a person who is both a shareholder and a director of the company do not qualify, even if CPF was paid for them through the entity.
- Employers trading in their personal capacity. This includes hawkers without a UEN and individuals hiring local personal drivers or domestic helpers.
- Certain organisations. Government bodies, statutory boards, embassies, international organisations, representative offices of foreign companies, and entities not registered in Singapore are excluded.
A foreign-owned Singapore company can qualify for the UEC on the same terms as a locally owned company, as long as it is registered in Singapore and the employee meets the conditions.
How much can you receive?
IRAS computes the payout each month based on the employee’s wage. The amount tapers between S$3,000 and S$4,000 so that there is no sudden cut-off.
| Employee’s monthly wage | Monthly payout | Illustration |
|---|---|---|
| S$3,000 or less | 20% of the wage | Wage S$2,500: payout S$500 |
| More than S$3,000 and below S$4,000 | S$2,400 minus (0.6 x wage) | Wage S$3,500: payout S$300 |
| S$4,000 or more | Not eligible | No payout |
The highest payout is S$600 a month (at a wage of S$3,000), for the first nine months of employment.
How do you apply?
Whether you need to apply depends on how you found the employee.
- Hired through Yellow Ribbon Singapore or a halfway house contracted with the Singapore Prison Service: you do not need to apply. IRAS pays eligible employers automatically.
- Hired any other way (for example, through your own advertisement or a referral): apply to IRAS through go.gov.sg/applyUEC.
- Apply by 31 January of the following year. The closing date for ex-offenders hired in a given year is 31 January of the next year. For someone hired in 2026, the deadline is 31 January 2027.
- Make sure IRAS can pay you. Payouts go only by GIRO (the account linked for Income Tax or GST) or PayNow Corporate linked to your UEN. No cheques are issued.
Applications are processed on the annual payout schedule, and IRAS notifies eligible employers of the amount payable.
Documents and records checklist
- Signed employment contract or letter of appointment showing the start date and monthly salary
- Payroll records and payslips for the first nine months
- CPF payment records showing contributions paid on time
- Any letter or referral from Yellow Ribbon Singapore or a halfway house, if that is how the hire was made
- Your company’s GIRO or PayNow Corporate details
- Corppass access for staff who handle the application (see the note on Corppass below)
Handle information about an employee’s criminal record carefully. Collect only what you need, restrict access to the HR and finance staff who handle the UEC, and keep it out of general personnel files. Our article on adding a background check to recruitment covers the data protection steps.
When is the UEC paid?
The UEC for wages paid from January to December is paid in May of the following year. So wages for 2026 are paid out in May 2027.
If you think your company should have received a payout but did not, you have two months from the payout month to appeal. Because the payout is in May, the UEC appeal form must be submitted by 31 July. Late appeals are not considered.
From 2 November 2026, IRAS asks Corppass administrators to assign the new “Schemes & Grants (Payment)” and/or “Schemes & Grants (Grant Management and Assessment)” authorisation to the relevant staff, ahead of refreshed grant digital services launching at the end of December 2026. Doing this now avoids losing access when you need to check or appeal a payout.
Example: a café hiring through its own advertisement
Example: A café company hires a Singapore Citizen as a kitchen assistant on 1 October 2026 at S$2,600 a month. He was released 18 months earlier, and he applied directly through the café’s job post rather than through Yellow Ribbon. The café pays CPF on time.
- Monthly UEC: 20% of S$2,600 = S$520
- Nine months (October 2026 to June 2027): S$4,680 in total
- Because the hire was not made through Yellow Ribbon or a halfway house, the café applies at go.gov.sg/applyUEC by 31 January 2027.
- Payout for October to December 2026 wages (S$1,560) is due in May 2027; payout for January to June 2027 wages (S$3,120) is due in May 2028.
If his pay rose to S$3,200 in March 2027, the payout for those months would be S$2,400 minus S$1,920, which is S$480 a month. These figures are illustrative; IRAS makes the final computation.
Common reasons employers miss out
- Missing the 31 January deadline for hires made outside Yellow Ribbon and halfway houses.
- Late CPF contributions. The UEC depends on timely CPF.
- No GIRO or PayNow Corporate set up. IRAS does not issue cheques.
- The employee was released more than three years before joining.
- The employee is also a shareholder and director. Their wages are excluded as a business owner.
- Missing the appeal window. Appeals close on 31 July after the May payout.
The Government also checks for abuse. Arrangements made only to claim the credit can lead to payouts being denied and to penalties, fines or imprisonment.
Frequently asked questions
Does the employee have to tell us about their record?
The UEC does not require you to ask every candidate about past offences. If you hire through Yellow Ribbon Singapore or a contracted halfway house, IRAS assesses and pays eligible employers automatically. For other hires, you need enough information to apply, so handle it with consent and confidentially. The Workplace Fairness legislation and fair employment guidelines still apply to how you recruit; see our guide to the Workplace Fairness Act.
Can we receive the UEC for a part-time employee?
IRAS’s published conditions refer to the employee’s monthly wage and timely CPF and do not exclude part-time staff. If you plan to rely on the UEC for a part-time hire, confirm the position with IRAS through go.gov.sg/askuec.
What happens if the employee leaves within nine months?
The UEC is computed on wages paid in the first nine months of employment, so if the employee leaves earlier, there are simply fewer months of wages for IRAS to compute the credit on.
Can we also get help finding candidates?
Yes. Yellow Ribbon Singapore offers employers free job matching and career retention coaching for ex-offender hires. You can contact them at 1800 741 5567.
How should the UEC be recorded in our accounts?
The UEC is a government grant that offsets wage costs. Our article on the tax and accounting treatment of government grants explains how such payouts are usually recorded.
Where the UEC fits among other hiring incentives
For an overview of hiring, training and enterprise schemes, see our directory of Singapore government grants for companies. The official rules are on the IRAS Uplifting Employment Credit page, and Yellow Ribbon’s employer services are listed on OurWorkforce.
Information checked against official sources on 6 November 2026.
Free grant consultation: is the UEC 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 the UEC, may be applicable.
Email [email protected] or WhatsApp +65 8501 7133 to book a time. IRAS decides every application, and no consultant can guarantee approval.
Rachel Sim, Raffles Corporate Services