1. What are the Special Employment Credit (SEC) and Additional Special Employment Credit (ASEC)?

    ​The SEC was first introduced as a 2011 Budget initiative to raise the employment rate of older low-wage Singaporeans. In 2016, it was extended for 3 ​years (viz. 2017 to 2019) to provide wage offsets to employers hiring Singaporean workers aged 55 and above, and earning up to $4,000.

    To encourage employers to voluntarily re-employ Singaporeans abov​e the re-employment age, it was announced at Budget 2015 that an additional wage offset up to 3 ​(ASEC) would be introduced in 2015.

    The re-employment age was raised from 65 to 67 from 1 July 2017. The new re-employment age of 67 applies ​to those who turn 65 on or after 1​ July 2017; in other words, those born on or after 1 July 1952.

    The additional wage offset of 3% was extended from 1 July 2017 to 31 December 2019 to encourage employers to voluntarily re-employ employees who are not covered by the new re-employment age.

    As announced at Budget 2019, the SEC and ASEC will be extended for one more year until end-2020.​​​

  2. Will the SEC be extended beyond 2020?

    ​As announced at Budget 2019, the Government will be reviewing the relevance and structure of SEC to consider how best to support employers in hiring older workers going forward.​

    ​This will be done in tandem with the recommendations of the Tripartite Work Group on Older Workers. The Tripartite Work Group ha​s been tasked to review the retirement and re-employment age, and CPF contribution rates for older workers.​​​​​

  3. What is the estimated coverage of the extended SEC and ASEC?

    ​​​​The extended SEC is estimated to cover about 404,000 workers, or about three ​in four older Singaporean workers.​​​​​​​​

  4. Will SEC continue to apply to employers hiring Persons with Disabilities (PWDs)?

    ​​The SEC for PWDs will also be extended for one more year, until end-2020.

    ​The extended SEC will continue to provide a wage offsets of up to 16% of the PWD's monthly wage, regardless of age, for employers hiring PWDs. The monthly SEC ​​will be capped at $240. The wage offset for the extended ASEC will continue to be set at up to 22%, capped at $330.​​