In recent years, there have been significant strides taken by both Persons with Disabilities (PwDs) and the Government to enable this group to contribute in Singapore’s workforce. Since 2019, the average employment rate of PwDs has risen nearly 20% – and as of 2024, 33.6% of PwDs aged 15 to 64 are employed.
Yet, it can still be a challenge to secure a job in Singapore. Read another way, 66.4% of PwDs aged 15 to 64 remain outside Singapore’s labour force.
To encourage employers to hire PwDs, 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.
Initially available for 5 years from 2021 to 2025, the EEC was extended to 2028 during the Singapore Budget 2025 announcements. This provides continued certainty for employers who hired PwDs, as well as highlights that the scheme remains helpful for PwDs to be gainfully employed.
Read Also: Enabling Mark: Singapore’s Framework For Hiring Employees With Disabilities
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 nine months of employment.
Compared to the old Special Employment Credit scheme it replaced, the EEC provides higher wage offsets for businesses that 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.
Read Also: Complete Guide To Employer’s CPF Contributions 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 9 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 $1,000 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 $200 per month (which is 20% of $1,000) for the 25-year-old Singaporean PwD.
If he earns $2,000 instead. the EEC payout will be $400 instead. And, if he earns $4,000, the employer will not get any EEC payout as $1,600 – [40% of $4,000 = $1,600] is $0.
Employers should note that employees who are eligible for EEC will not be eligible for the Senior Employment Credit (SEC). Put simply, the two schemes are not stackable. 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.
Read Also: Guide To Senior Employment Credit (SEC) Payouts For Employers Hiring Older Workers In Singapore
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 |
Note that EEC payouts are taxable in the year that businesses receive the payouts, as it is considered revenue in nature. Companies are however, required to declare the payout received in their income tax return (Form C/Form C-S) for the relevant YA, while sole proprietors and partnerships are not required to declare the scheme payouts received in their income tax returns (Form B/B1 or Form P) as this will be automatically included by IRAS in their tax assessments for the relevant YA.
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