{"id":6343,"date":"2025-03-13T17:30:00","date_gmt":"2025-03-13T09:30:00","guid":{"rendered":"https:\/\/dollarsandsense.sg\/business\/?p=6343"},"modified":"2025-03-13T17:35:11","modified_gmt":"2025-03-13T09:35:11","slug":"senior-employment-credit-sec-payouts-employers-hiring-older-workers-singapore","status":"publish","type":"post","link":"https:\/\/dollarsandsense.sg\/business\/senior-employment-credit-sec-payouts-employers-hiring-older-workers-singapore\/","title":{"rendered":"Guide To Senior Employment Credit (SEC) Payouts For Employers Hiring Older Workers In Singapore"},"content":{"rendered":"\n

First announced in 2020, the Senior Employment Credit (SEC) scheme helps businesses adjust to rising costs from the increase in Retirement Age and Re-employment Age, as well as higher CPF contribution rates for senior workers.<\/p>\n\n\n\n

The SEC is part of a broader Senior Worker Support Package, which comprises 4 main initiatives, including the CPF Transition Offset<\/a> (CTO); Senior Worker Early Adopter Grant (which ceased as of 31 December 2022); and Part-Time Re-employment Grant (PTRG)<\/a>.<\/p>\n\n\n\n

During Budget 2025, the Government extended the SEC scheme until 2026 – to continue supporting employers that hire senior employees. The SEC was slated to end in 2025 prior to the announcement.<\/p>\n\n\n\n

For businesses keeping track of Government schemes, the SEC combined two previous schemes – the Special Employment Credit and the Additional Special Employment Credit – into a single scheme.<\/p>\n\n\n\n

Read Also: <\/em><\/strong>Retirement And Re-Employment Act: What Employers Need To Know About Retaining Older Workers<\/em><\/strong><\/a><\/em><\/strong><\/p>\n\n\n\n

What Is The Senior Employment Credit (SEC)?<\/strong><\/h3>\n\n\n\n

In 2021 and 2022, the Senior Employment Credit (SEC) provided wage offset to employers that hired senior Singapore workers aged 55 and above, and earned up to $4,000. The SEC was extended during Budget 2023 – spanning 2023 to 2025. However, it will only provide wage offset for Singaporean workers aged 60 and above, and earn up to $4,000.<\/p>\n\n\n\n

Under the scheme, more support will be given for senior employees who earn up to $3,000 a month.<\/p>\n\n\n\n

During Budget 2025, the SEC scheme was also extended until 2026.<\/p>\n\n\n\n

Maximum Wage Offsets for employees aged 55 and above, and earn up to $4,000\/month<\/strong><\/td> <\/td> <\/td><\/tr>
Age of employee<\/td>2021<\/strong> (up to)<\/td>2022<\/strong> (up to)<\/td><\/tr>
55-59<\/td>2%<\/td>1%<\/td><\/tr>
60-64<\/td>3%<\/td>3%<\/td><\/tr>
65-66<\/td>5%<\/td>5%<\/td><\/tr>
67 and above<\/td>8%<\/td>8%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Maximum Wage Offsets for employees aged 60 and above, and earn up to $4,000\/month<\/strong><\/td><\/tr>
Age of employees<\/td>2023<\/strong> (up to)<\/td>2024 & 2025<\/strong> (up to)<\/td><\/tr>
60-64<\/td>3%<\/td>2%<\/td><\/tr>
65-67<\/td>5%<\/td>4%<\/td><\/tr>
68 and above<\/td>8%<\/td>7%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Maximum Wage Offsets for employees aged 60 and above, and earn up to $4,000\/month<\/strong><\/td><\/tr>
Age of employees<\/td>2026<\/strong> (up to)<\/td><\/tr>
60-64<\/td>2%<\/td><\/tr>
65-68<\/td>4%<\/td><\/tr>
69 and above<\/td>7%<\/td><\/tr><\/tbody><\/table>
Source: Ministry of Manpower (MOM)<\/figcaption><\/figure>\n\n\n\n

It is important to note that Senior Employment Credit are paid to businesses to help offset costs during the transition phase, and employees should not expect to receive any part of this payout.<\/p>\n\n\n\n

How Much Senior Employment Credit (SEC) Payouts Will Businesses Get?<\/strong><\/h3>\n\n\n\n

How much Senior Employment Credit payouts a business gets will depend on 2 things: 1) how much a senior employee is earning; and 2) how old their senior employees are.<\/p>\n\n\n\n

While the SEC payouts are given for senior employees earning up to $4,000, more support is provided for those earning $3,000 or less. Here’s a more comprehensive breakdown of the SEC payouts that a business can expect for employing senior employees.<\/p>\n\n\n\n

Monthly Wage of Employee<\/strong><\/td>Aged 55-59<\/strong><\/td>Aged 60-64<\/strong><\/td>Aged 65-66<\/strong> [in 2021 to 2022]

Aged 65-67<\/strong> [in 2023 to 2025]<\/td>		Aged 67 and above<\/strong> [in 2021 to 2022]

Aged 68 and above <\/strong>[in 2023 to 2025]

Aged 69 and above<\/strong>
[in 2026] <\/td><\/tr>
Up to $3,000<\/strong><\/td>2% of wage [in 2021]\u00a0

1% of wage [in 2022]

N.A [in 2023 to 2026]<\/td>		3% of wage [in 2021 to 2023]

2% of wage [in 2024 to 2026]<\/td>		5% of wage [in 2021 to 2023]

4% of wage [in 2024 to 2026]<\/td>		8% of wage [in 2021 to 2023]

4% of wage [in 2024 to 2026]<\/td><\/tr>
>$3,000 to $4,000<\/strong><\/td>$240 – (6% of wage) [in 2021]\u00a0

$120 – (3% of wage) [in 2022]

N.A [in 2023 to 2026]<\/td>		$360 – (9% of wage) [in 2021 to 2023]

$240 – (6% of wage) [in 2024 to 2026]<\/td>		$600 – (15% of wage)[in 2021 to 2023]

$480 – (12% of wage) [in 2024 to 2026]<\/td>		$960 – (24% of wage)[in 2021 to 2023]

$840 – (21% of wage) [in 2024 to 2026]<\/td><\/tr><\/tbody><\/table>
Source: IRAS<\/a><\/figcaption><\/figure>\n\n\n\n

As we can see in the table above, the support for senior employees aged 55 to 59 went away in the Budget 2023 extension period (from 2023 to 2025), alongside a lowering in the rate of wage support. The scheme was also extended again during Budget 2025, at the same rate, for 2026.<\/p>\n\n\n\n

From the calculations, a business that employs a senior aged 67 in 2021 and paid $3,000 a month would have received a Senior Employment Credit payout of $240 per month (8% of $3,000), or up to $5,760 over the first 2 years (in 2021 and 2022). <\/p>\n\n\n\n

This support measure continued from 2023 to 2025, enabling the business to receive $240 per month (8% of $3,000) in 2023, and another $120 per month (4% of $3,000) in 2024 and 2025. In total, the business will get $5,760 more for 2023 to 2025.<\/p>\n\n\n\n

For the extension announced in Budget 2025, the business will stand to receive $120 per month (4% of $3,000) in 2026. This will contribute another $1,440 towards the business’ cashflow.<\/p>\n\n\n\n

For the SEC payouts, businesses receive a gradually decreasing support for employees who earn more than $3,000, with those earning $4,000 or more not qualifying for the wage support. <\/p>\n\n\n\n

For an employee aged 67 in 2021 and paid $3,750 a month, SEC payouts amount to $60 a month ($960 \u2013 24% of $3,750), or up to $1,440 over 2 years in 2021 and 2022. SEC payouts for this employee will be another $1,980 for 2023 to 2025. This is from $60 a month in 2023, and $52.50 a month for 2024 to 2025. In 2026, the business will stand to get another $720, worth $60 a month.<\/p>\n\n\n\n

Of course, a business with senior employees who are in younger age groups will also receive the respective lower SEC support levels. <\/p>\n\n\n\n

For businesses that want to do the calculations on their own, you can use an SEC calculator provided by IRAS<\/a>.<\/p>\n\n\n\n

When Can Businesses Expect To Receive The Senior Employment Credit (SEC) Payouts?<\/strong><\/h3>\n\n\n\n

For wages that are paid from January to June 2021, employers would have received the SEC payout in September 2021. For wages paid from July to December 2021, employers would have received the SEC payout in March 2022.<\/p>\n\n\n\n

The same applies to wages paid in 2022 to 2026, and employers would have received the SEC payouts in September and March, for salaries paid from January to June and from July to December.<\/p>\n\n\n\n

Businesses do not have to apply for these payouts as IRAS will be able to compute it based on CPF contributions. IRAS will then notify eligible employers of the amount payable to them. You can also view your notices once ready on your myTax Portal. These payouts will be disbursed through GIRO or PayNow Corporate.<\/p>\n\n\n\n

Read Also: <\/em><\/strong>What Is PayNow For Business And 4 Reasons Why Businesses Should Adopt It Soon<\/em><\/strong><\/a><\/em><\/strong><\/p>\n\n\n\n

Businesses Have To Pay Taxes On The Senior Employment Credit (SEC) Payouts<\/strong><\/h3>\n\n\n\n

The SEC payouts are considered revenue in nature. If you receive the SEC payouts, they will be taxable in the year you receive them. <\/p>\n\n\n\n

Individuals (including sole proprietors) and partnerships are not required to declare scheme payouts, as they will be automatically calculated by IRAS.<\/p>\n\n\n\n

Companies are required to declare SEC payouts in their income tax.<\/p>\n\n\n\n

Read Also: 4 Corporate Business Grants\/Payouts That Are Taxable (And Why Others Are Not)<\/a><\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Businesses can receive up to $5,760 for employing or keeping an existing senior employee on their payroll.\n","protected":false},"author":10,"featured_media":10444,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[95],"tags":[136,186,137,691,827,826],"yoast_head":"\nGuide To Senior Employment Credit (SEC) Payouts For Employers Hiring Older Workers In Singapore | DollarsAndSense Business<\/title>\n<meta name=\"description\" content=\"The Senior Employment Credit (SEC) provides a payout for each senior employee aged 55 and above, and earning up to $4,000 a month.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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