The SEC was first introduced as a 2011 Budget initiative to raise the employment rate of older low-wage Singaporeans. It will be extended for 3 years (viz. 2017 to 2019) to provide a wage-offset to employers hiring Singaporean workers aged 55 and above, and earning up to $4000.
In light of present economic uncertainties, and to encourage the continued contributions of older Singaporeans in the workforce, the SEC has been extended for 3 years (viz. 2017 to 2019) to provide a wage-offset to employers hiring Singaporean workers aged 55 and above, and earning up to $4,000. The first SEC payout under the extended SEC will be in September 2017, for work done in January to June 2017.
In general, the employment rates of older workers have increased over the years. There is still room for employment rates to grow for our older Singaporean workers, especially for those above the age of 55, and we should continue to encourage older Singaporeans to be gainfully employed as long as they are able to and desire to stay active. The wage-offsets under the SEC beyond 2016 are tiered by age to provide stronger support for employers hiring Singaporeans in the older age bands, where employment rates are lower. Employers who hire workers aged 65 and above, will receive a wage-offset of up to 8% of the employee's wages, similar to the current SEC.
The SEC is not the only scheme that the Government has introduced to support the continued employment of older workers. Other measures include re-employment legislation, WorkPro, Workfare Training Support and initiatives under the Tripartite Alliance for Fair Employment Practices.
The extended SEC will cover about 370,000 workers, or about three in four older Singaporean workers.
The SEC for PWDs will also be extended for 3 years, until 2019.
The extended SEC will continue to provide a wage-offset 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.