Absentee Payroll Funding: Here’s How You Can Get Reimbursed 90% Off Employee Training Costs

In the Resilience Budget, Deputy Prime Minister Heng Swee Keat announced from 1 May 2020 onwards, Absentee Payroll funding will be enhanced for all sectors to support companies when they send their employees for training.

Employers can tap on the Absentee Payroll funding to subsidise manpower costs when sending employees for certifiable skills training, which help companies manage operating costs while employees can make good use of the downtime to upskill and be better equipped for the future.

Read Also: Restarting Singapore’s Economy: 5 Takeaways From PM Lee’s May Day 2020 Speech

Eligibility For Absentee Payroll Funding

Your company must be registered and incorporated in Singapore. All costs incurred on the training course must be fully sponsored by the company.

Also, employers have to continue paying salary or pay overtime salary whilst the employee is attending the course. This means that you cannot give employees time off instead for the training, as the grant is meant to defray normal or overtime pay for employees.

For employees, they must hold a full-time or permanent part-time position at the company and complete the course while under the employment of the sponsoring company. Employees also need to achieve at least 75% attendance at the enrolled course.

Government entities, which includes private entities under government agencies whose manpower expenditure is partially government funded, are not eligible for the Absentee Payroll funding.

How Much Coverage The Scheme Covers For Companies?

As announced during the Resilience Budget, all employers can claim 90% of the hourly basic salary, up from 80%, capped at $10 per hour.

This will apply for eligible courses starting before 1 January 2021.

If your employee is eligible for the Workfare Training Support Scheme, the funding rate is at 95% of hourly basic salary, uncapped. It is applicable to employees who are Singapore citizens aged 35 years and above, with a salary of up to $2,000.

What Are The Available Courses?

The eligible courses are those from SkillsFuture Singapore (SSG)-appointed Continuing Education and Training (CET) centres, and selected certifiable courses that are approved by SSG.

You can search for approved courses at the SkillsConnect portal, or enquire with the CET centres. Upon selecting a course, scroll down to check its latest course support period. The ‘Type of Funding’ field should contain either ‘Training Grant and Absentee Payroll only’ or ‘Absentee Payroll only’.

However, if your employee is under the Workfare Training Support Scheme (WTS), the training sent must also be WTS-eligible courses, such as Singapore Workforce Skills Qualifications (WSQ) courses.

Read Also: Why Employee Development Is Important And How To Implement It

How To Apply For The Scheme?

First, login to SkillsConnect and apply for a company profile and then follow this step-by-step guide to apply for a training grant and submit a claim for the course fees.

When submitting the training grant application, do take note that you would have to hand in the application between 30 days before the course starts and 30 days after the course start date.

How Do I Claim For Funding For My Employees?

You can only submit funding claims when the company has paid for all training expenses. Employees must have attended at least 75% of the course and pass any examinations or assessments where applicable.

To create a claim, log in to SkillsConnect, click on Adhoc Claim Menu, and go to Create Claim. For full fee courses, the company will be the one submitting the claim For nett fee courses, the training organisation will be the one submitting instead.

The deadline to submit your claim is up to 120 days after the course end date. Disbursement will be made to the bank account as indicated in your SkillsConnect profile. You can read the FAQ on SkillsConnect for more information.

Read Also: Here’s What You Need To Know About The Jobs Support Scheme

Stay Healthy, Go Digital

Keep your workers and business healthy during this period by going digital. In partnership with IMDA Go Digital Initiative, understand how OCBC digital solutions can help your business buy, sell and operate better during this time.

Join The DollarsAndSense Business Community

For more content that helps entrepreneurs, freelancers, and self-employed individuals and learn to build better businesses, join the DollarsAndSense Business Community on Facebook.

You May Also Like