Living with a disability can be challenging as it is. Yet, persons with disabilities (PwDs) struggle with another hurdle – securing a job in Singapore. According to the 2018 Comprehensive Labour Force Survey by the Ministry of Manpower (MOM), only 28.6% of PwDs aged 15 to 64 were employed; with 62.7% of them remaining completely outside Singapore’s labour force.
To encourage employment of PwDs in Singapore, the government introduced the Enabling Employment Credit (EEC) – a targeted scheme that replaces the Special Employment Credit (SEC) and Additional SEC which expired in December 2020.
Available for 5 years from 2021 to 2025, the EEC was enhanced during Budget 2023 to ensure that the scheme remains helpful for PwDs to find employment and remain gainfully employed.
What Is The Enabling Employment Credit (EEC)?
The Enabling Employment Credit (EEC) provides wage offset of up to 20% of a PwD employee’s monthly income capped at $400 per month for each employee. There is no cap to the number of employees eligible. The EEC will be given to employers that hire Singaporean PwD employees, aged 13 and above, and earning less than $4,000 a month.
Employers hiring PwD employees who have not been working for at least six months will receive an additional 20% wage offset, capped at $400 per month for each employee, for the first six months of employment. This was enhanced during Budget 2023, and prior to that, such employees received an additional 10% wage offset, capped at $200 per month.
Compared to the scheme it replaces, the EEC provides higher wage offsets for businesses who hire employees with disabilities.
Who Qualifies For The Enabling Employment Credit (EEC)?
According to the Ministry of Social and Family Development (MSF), PwDs are defined as individuals “whose prospects of securing, retaining places and advancing in education and training institutions, employment and recreation as equal members of the community are substantially reduced as a result of physical, sensory, intellectual and developmental impairments”.
All businesses (not under the employer exclusion list) that have made timely mandatory CPF contributions qualify for the Enabling Employment Credit (EEC). These wage offsets are paid to employers and not to the PwD employees.
Employers under the employer exclusion list include local government agencies, International Organisations and businesses not registered in Singapore.
How Much Enabling Employment Credit (EEC) Payouts Will Businesses Receive?
|Monthly Wage of Employee with disability||Payout||Additional payout if employee was not employed for the past 6 months, for up to the first 6 months of employment only|
|$2,000 and below||20% of wage||20% of wage|
|Above $2,000 to $3,000||$400||$400|
|Above $3,000 to $4,000||$1,600 – [40% of wage]||$1,600 – [40% of wage]|
Here’s an illustration of how the scheme works:
Company X hires a 25-year-old Singaporean PwD with a salary of $2,000 per month. Assuming that the employee has been in active employment and that Company X made timely mandatory CPF contributions to their employee, they will receive a payout of $400 per month (which is 20% of $2,000) for the 25-year-old Singaporean PwD.
Employers should note that employees who are eligible for EEC will not be eligible for the Senior Employment Credit (SEC). For example, if you hire a 67-year-old Singaporean PwD who is eligible for both EEC and SEC; he will not be eligible for both payouts as the schemes cannot be stacked.
For employers who would like a precise calculation on the amount of payout you’ll receive, you may use the EEC calculator provided by IRAS.
When Will Businesses Receive Enabling Employment Credit Payouts?
Businesses do not have to apply for payouts as they are automatically computed and disbursed half-yearly to eligible employers through GIRO or PayNow Corporate.
For wages paid between January and June, employers can expect to receive the EEC payout in September of the same year. EEC payouts for wages paid between July and December will be disbursed to employers in March of the following year.
|Period of Wages||When EEC Payouts are Made|
|January to June||September of the same year|
|July to December||March the following year|
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