Perhaps one of the toughest parts of reintegrating into society after incarceration is finding employers who are willing to hire an ex-convict. Hiring ex-offenders presents a unique opportunity to address workforce shortages and contribute to community rehabilitation.
By offering employment to individuals with criminal records, companies can tap into a diverse and often underutilised talent pool, fostering a more inclusive and equitable work environment.
To incentivise hiring ex-offenders, the Uplifting Employment Credit (UEC) provides a wage offset of up to 20% of the employees’ monthly income. While this was introduced in Budget 2023, and slated to end in 2025, PM Lawrence Wong extended the scheme to 2026 during his Singapore Budget 2025 speech.
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Which Employers Are Eligible For Payouts Under The Uplifting Employment Credit (UEC)?
In general, an employer who hires an ex-offender who earns a monthly wage of below $4,000 will qualify for the payout. The employer must have made timely mandatory contributions for the employee to qualify for the payout. However, aside from these, some businesses are not eligible for the UEC.
Wages paid to business owners or employers trading in their own personal capacity will not be eligible for UEC. This includes employers who are hawkers and do not have a UEN, and employers hiring local personal drivers or local domestic helpers.
Local government agencies, international organisations and businesses not registered in Singapore also do not qualify for UEC. For the full list of exclusions, please refer to the IRAS website.
Employers who hired an ex-offender through Yellow Ribbon or its partners will be automatically eligible for UEC, so long as it meets the other eligibility criteria. For employers who hired an ex-offender without going through Yellow Ribbon Singapore or its partners, you may send in a direct application.
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How Much Do Employers Receive From The Uplifting Employment Credit (UEC)?
Employers can expect payouts worth 20% of an employee’s wage, for those earning $3,000 or less, and [$2,400 – 60% of their wage] for those earning between $3,000 to $4,000. For example, employers of an ex-offender earning $2,500 will receive $500 per month, while those employing an ex-offender earning $3,500 will receive $300 per month.
The payouts will be given for the first nine months of employment and is capped at $600 per employee.
Source: IRAS
Payouts will be made through GIRO or PayNow Corporate to the employers’ GIRO bank account used for payment of Income Tax/GST. Employers are required to have a PayNow Corporate account to receive the payouts.
The payouts for wages paid from January to December in the preceding year will be disbursed in May of the following year.
The payout is taxed for the year that it is received. While it may seem like the government gives and then takes back a chunk, the principle of tax in Singapore is that grants that count as revenue for the company are taxed. Since the UEC helps businesses defray operating costs, it is counted as revenue and therefore is taxable.
Individuals and partnerships are not required to declare the payouts in their income tax returns since this will be automatically included by IRAS, however companies must declare the payout in their income tax return for the year of assessment.
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Rehabilitation For Ex-Offenders Includes Being Able To Earn An Income
Having employment and a steady source of income is a crucial part of community rehabilitation. Aside from the likelihood of unemployed ex-convicts returning to a life of crime, being employed also gives them a sense of purpose alongside a viable livelihood and avenue to upskill themselves.
Nevertheless, the most important part about reintegrating ex-convicts to society is community. Giving them opportunities to make friends with other productive members of society, especially at the workplace, is crucial to helping them turn over a new leaf.
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