An Wise Selection of the Special Employment Credit
Following the implementation of Singapore’s Special Employment Credit Plan (SEC) in Budget 2011, the SEC was introduced in 2012 to help the government’s efforts to increase the employment of low-wage Singaporeans.
Depending on the age and quantity of income reported by their employees, employers may be eligible for payroll help for SEC payments ranging from 8% to 23% of their workers’ wages in 2015. An additional three years were added to the SEC’s tenure, which had been scheduled to expire at the end of 2016.
SEC Applications are welcomed from employers over the age of 50
Employers may get up to 8% of an employee’s monthly salary if they recruit Singaporeans aged 55 and over who earn up to SGD$4000 per month, as represented in the payroll system, in the first instance when computing wage offsets under the Special Employment Credit Scheme. A distinct set of pay offsets is applied to employees under the age of 65 than to those above the age of 65. CPF contribution rates for retirees have gone up, therefore the Social Security Contribution (SEC) rate was raised in Budget 2014 to help firms cope with these rising costs. As a result of the 2015 Federal Budget, it was increased so that companies may get up 11.5 percent SEC if they recruit older workers (those over 65) or retirees who want to return to work.
Employers will have a clearer idea of how much SEC they may expect to collect in 2015 as a result of simplified payroll accounting. For further detail, see the chart with examples of calculations below:
The acronym for the 2015 SEC credit is “Special Employment Credit.”
Recalculation of the SEC statistics for 2016 takes into account the current state of play. Taxable employment credit is determined at 8 percent and 11 percent, depending on the age group, as stated in the table:
People who work may claim a tax benefit known as the SEC (Special Employment Credit) for 2016.
SEC People with Disabilities in the Workplace: A Handbook for Employers (PWDs)
It has been made possible for firms to enable people with disabilities (PWDs) to find work in an atmosphere where they can function independently. The wage-offset will be up to 16 percent of a PWD’s monthly wages under the new arrangement, which will continue until 2019. (under the age of 50). The Open Door Program (ODP), for example, may help employers learn about payroll concerns and other programs that can aid them in hiring persons with disabilities. Learn more about how to employ persons with disabilities from this information.
Exactly How Do I Qualify for the Special Employment Credit Scheme?
The only ones who are eligible are employers who have paid CPF contributions to their employees who are 50 years old or older at the time of the application (age 50 and below for PWDs). Individuals that are self-employed aren’t concerned about their age. When it comes to CPF contributions, employees’ ages are also taken into consideration. Suppose an employee turns 50 in July 2015, and the company is only eligible for SEC starting in August. An automated examination and notification of CPF Board eligibility will be sent to all qualified employers.