Useful Information for Employers

  1. How much SEC can employers receive?
  2. ​​​​​​​​​​​​​​​​​​​​​​​​​​​In 2016, employers will receive a SEC of up to 8% of their employees' monthly wages, for all Singaporean employees aged above 50 and earnin​g up to $4,000. ​

    From 2017 onwards, employers hiring Singaporean workers aged 55 and above, and earning up to $4,000 will continue to receive a wage-offset, tiered by age (see table below).

    ​Age (years)​Wage-offset
    ​55 - 59Up to 3% of monthly wage​
    60 - 64​Up to 5% of monthly wage​
    65 & above​Up to 8% of monthly wage​


    In 1 January 2015, an additional wage offset of up to 3% of an employee's monthly wages was introduced to encourage employers to voluntarily re-employ Singaporeans aged 65 and above. At Budget 2017, it was announced that this additional wage support would be extended from 1 July 2017 to 31 Dec 2019 to encourage the voluntary re-employment of older Singaporeans who would not be covered by the new re-employment age of 67, i.e. individuals born before 1 July 1952 and those above age 67 on 1 July 2017. Taken together, this means that employers who hire workers not covered by the re-employment age of 67 will receive an SEC of up to 11% of an employee’s monthly wages​.​

     

    ​​​​​​​​The ​​formula for the SEC for 2016 is​​ as follows :​​

    ​​​​​  Income of employee in a given month ($) 
    ​​​​ SEC for the month ($) for employers who hire Singaporeans
    aged above 50​​ aged 6​5 and above​
    Up to 3,000 8​% of wage 11% of wage
    > 3,000 to 4,000 960 – (0.24*wage) ​1,320 – (0.33*wage)
    ​ ​

    ​​The amount of monthly SEC employers will receive in 2016 is in the table below.

    ​​​​​​​  Income of employee in a given month ($) 
    ​​ ​​​​ SEC for the month ($) for employers who hire Singaporeans
    aged above 50​​​
    [Up to 8% SEC]​
    aged 6​5 and above
    [Up to 11% SEC]
    500 40.0055.00
    1,000 80.00 ​110.00
    1,500 120.00165.00
    2,000 160.00220.00
    2,500 200.00275.00
    3,000 240.00330.00
    3,250 180.00247.50
    3,500 120.00165.00
    3,750 60.0082.50
    ≥​4,000 00

    ​​The SEC payout reduces linearly for monthly wages between $3,000 to $4,000. For work done in 2016, the maximum SEC an employer can receive per month is ​$240​ for a Singaporean employee aged above 50 but below 65, and $330​ for a Singaporean employee aged 65 and above. ​


    The formula for the SEC for work done from 1 January to 30 June 2017 is as follows :

    ​​​​​​​ 
    ​​​​​  Income of employee in a given month ($) 
    ​ ​​​​ SEC for the month ($) for employers who hire Singaporeans
    aged 55 to 59​​ aged 6​0 to 64​ aged 65 and above​
    Up to 3,000 3% of wage5% of wage11% of wage*​
    > 3,000 to 4,000360 – (0.09*wage)​600 – (0.15*wage)1,320  (0.33*wage)​

    ​ * Include 3% additional wage-offset for employers who hire workers aged 65 and above


    ​The amount of monthly SEC employers will receive for 1 January to 30 June 2017 is in the table below.

    ​ 
    ​​​​​​​  Income of employee in a given month ($) 
    ​​ ​​​​ SEC for the month ($) for employers who hire Singaporeans
    aged 55 to 59​​​
    [Up to 3% SEC]​
    aged 6​0 to 64 
    [Up to 5% SEC]
    aged 65 and above​
    [Up to 11% SEC]
    50015.0025.0055.00​
    1,00030.00​50.00110.00​
    1,50045.0075.00165.00​
    2,00060.00100.00​220.00
    2,50075.00125.00​275.00
    3,00090.00150.00​330.00
    3,25067.50112.50​247.50
    3,50045.0075.00​165.00
    3,75022.5037.50​82.50
    ≥​4,00000​0


      

    The SEC payout reduces linearly for monthly wages between $3,000 to $4,000. For work done from 1 January to 30 June 2017, the maximum SEC an employer can receive per month is ​$90​ for a Singaporean employee aged 55 to 59, $150 for a Singaporean employee aged 60 to 64, and $330​ for a Singaporean employee aged 65 and above. ​ 


    The formula for the SEC for work done from 1 July 2017 to 31 December 2019 is as follows :

    ​​​​​​
    ​​​​​  Income of employee in a given month ($) 
    ​ ​​​​ SEC for the month ($) for employers who hire Singaporeans ​
    Aged between 55 and 59 (i.e. >=55yrs 0mths and <=59yrs 11mths) Agedbetween 60 and 64 (i.e. >=60yrs 0mths and <=64yrs 11mths) Aged between 65 and 67 (i.e. >=65yrs 0mths and <67yrs 0mths) Aged 67 and above (i.e. >=67yrs 0mths)​
    ​Born on or after 1 July 1952 Born before 1 July 1952​
    Up to 3,000 3% of wage5% of wage​8% of wage11% of wage​11% of wage​
    > 3,000 to 4,000360 – (0.09*wage)​600  (0.15*wage)​960 – (0.24*wage)1,320​ – (0.33*wage)1,320  (0.33*wage)​

    ​ 

    ​The amount of monthly SEC employers will receive for 1 July 2017 to 31 December 2019 is in the table below.

    ​ 
    ​​​​​​​  Income of employee in a given month ($) 
    ​​ ​​​​ SEC for the month ($) for employers who hire Singaporeans ​
    Aged between 55 and 59​​​
    [Up to 3% SEC]​
    Aged between 60 and 64​
    [Up to 5% SEC]
    Aged between 6​5 and 67 
    aged 67 and above​
    [Up to 11% SEC]
    ​Born on or after 1 July 1952
    [Up to 8% SEC]
    Born before 1 July 1952​
    [Up to 11% SEC]
    50015.0025.00​40.0055.00​55.00​
    1,00030.0050.00​​80.00​110.00110.00​
    1,50045.00​75.00120.00165.00​165.00​
    2,00060.00​100.00160.00220.00​​220.00
    2,50075.00​125.00200.00275.00​​275.00
    3,00090.00​150.00240.00330.00​​330.00
    3,25067.50​112.50180.00247.50​​247.50
    3,50045.00​75.00120.00​165.00​165.00
    3,75022.50​37.5060.00​82.50​82.50
    ≥​4,0000​00​0​0




     

    The SEC payout reduces linearly for monthly wages between $3,000 to $4,000. For work done from 1 July 2017 to 31 December 2019, the maximum SEC an employer can receive per month is ​$90​ for a Singaporean employee aged 55 to 59, $150 for a Singaporean employee aged 60 to 64, $240​ for a Singaporean employee aged 65 to 67 (born on or after 1 July 1952), and $330 for a Singaporean employee born before 1 July 1952 or aged 67 and above. 

  3. How much SEC can employers of persons with disabilities (PWDs) receive?
  4. ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Employers of PWDs will receive a SEC of up to 16% of the PWD's monthly income, regardless of age.​​​​ ​

    In addition, employers of older PWDs aged 65 and above who would not be covered by the new re-employment age of 67, i.e. individuals born before 1 July 1952 and those above age 67 on 1 July 2017, will receive a further SEC enhancement of up to 6%. This will increase the SEC quantum to up to 22% of the monthly wage for these PWDs.​


    ​​The formula for the SEC ​for PWDs from 1 January 2016 to 30 June 2017 i​s as follows :​​​ 

    ​​​​​​​​  Income of employee in a given month ($) 
    ​​​ ​​​​ SEC for the month ($) for employers who hire Singaporean PWDs​
    aged 13 to 64​​ aged 65 and above
    Up to 1,500 16% of wage22% of wage
    > 1,500 to 3,000240330
    ​​​> 3,000 to ​​4,000 960 - (0.24*wage) 1,320 - (0.33*wage)
    ​​​ ​​

    ​The amount of monthly SEC employers will receive in 2016 and 1 January - 30 June 2017 is in the table below.​

    ​​​​​​​  Income​ of employee in a given month ($) 
    SEC for the month ($) for employer​s who hire Singaporean PWDs
    aged 13 to 64 
    ​[Up to 16% SE​C]
    aged 65 and above
    [Up to 22% SEC]​
    500 80.00110.00
    1,000 160.00220.00
    1,500 240.00330.00
    2,000 240.00 330.00
    2,500 240.00 330.00
    3,000 240.00330.00
    3,250 180.00247.50
    3,500 120.00 165.00
    3,750 60.0082.50
    ≥​4,000 0 0

    ​​​​

    The SEC payout reduces linear​ly for monthly wages between $3,000 to $4,000. The maximum SEC an employer can receive per month is $240 for a Singaporean PWD employee aged between 13 and 64, and $330 for a Singaporean PWD employee aged 65 and above.​

    ​ ​​

    The formula for the SEC for PWDs from 1 July 2017 to 31 December 2019 is as follows :

    Income of employee in a given month ($) 
    SEC for the month ($) for employers who hire Singaporean PWDs
    Aged 13 and above but below 65 (i.e. >=13yrs 0mths and <=64yrs 11mths) Aged between 65 and 67 (i.e. >=65yrs 0mths and <67yrs 0mths)​Aged 67 and above (i.e. >=67yrs 0mths)
    ​Born on or after 1 July 1952 Born before 1 July 1952​
    Up to 1,50016% of wage16% of wage​22% of wage​22% of wage​
    > 1,500 to 3,000240240​​330​330
    > 3,000 to 4,000 960 - (0.24*wage) 960 - (0.24*wage)​1,320 - (0.33*wage)​1,320 - (0.33*wage)

    The amount of monthly SEC employers will receive from 1 July 2017 to 31 Dec 2019 is in the table below.

    Income of employee in a given month ($) 
    SEC for the month ($) for employers who hire Singaporean PWDs
    Aged 13 and above but below 65
    ​[Up to 16% SE​C]
    Aged between 65 and 67 ​Aged 67 and above
    [Up to 22% SEC]
    Born on or after 1 July 1952
    [Up to 16% SEC]
    Born before 1 July 1952
    [Up to 22% SEC]​
    50080.00​80.00110.00​110.00​
    1,000160.00​160.00​220.00​220.00
    1,500240.00​240.00​330.00​330.00
    2,000240.00​240.00330.00​​330.00
    2,500240.00240.00​​330.00330​.00
    3,000240.00​240.00​330.00​330.00
    3,250180.00180.00​247.5​0​
    ​247.50
    3,500120.00​120.00165​.00165.00​
    3,75060.00​60.00​82.50​82.50
    ≥​4,0000​0​00​

     ​

    The SEC payout reduces linearly for monthly wages between $3,000 to $4,000. The maximum SEC an employer can receive per month is $240 for a Singaporean PWD employee aged between 13 and 65, and $330 for a Singaporean PWD employee born before 1 July 1952.  

  5. What is considered as wages in assessing SEC eligibility? Will overtime pay and bonuses be included?
  6. ​​​SEC eligibility is based on the total wages paid to the employee, as computed from the CPF contributions that are made. The total wage of the employee is the sum of his Ordinary Wages for the month and the Additional Wages paid to him in that month. This may include but is not limited to food allowances, overtime, annual bonus, leave pay etc. Please refer to CPF Board website for a more detailed description of total wages.

  7. How is the age of an employee determined in assessing his eligibility for the SEC?
  8. ​​From 2017 - 2019, the SEC will be provided to employers that hire employees aged 55 and above, and the wage-offset will be tiered by age. The employee will be considered to be 55 (or the next age group) in the month of his birthday.

    For example, 

    (i) If the employee turns age 55 in January 2017, the employer's contributions made for him from January 2017 onwards may qualify for SEC.​


    (ii) If the employee turns age 65 in January 2017, the wage-offset provided to the employer will be 8%, with effect from 1 January 2017.


  9. As an employer, what do I need to do to receive my SEC?
  10. MOM will automatically assess your eligibility for the SEC, based on your regular monthly CPF contributions for your employees. You will receive a letter from MOM informing you of the payment if you are eligible and have made the necessary CPF contributions on time.

  11. When is the cut-off date for employers to make their CPF contributions to qualify for SEC?
  12. ​​Employers are given 14 days to make payment of CPF contributions after the end of the month for which CPF contributions are due, to qualify for SEC. If the last day of the grace period falls on a Saturday, Sunday or public holiday, CPF contributions must be paid by the next working day.

  13. How will the SEC payment be made?
  14. ​​​​Employers will receive their SEC in the bank accounts that are registered with the CPF Board for the GIRO payment of CPF contribution. Employers without a GIRO arrangement with the CPF Board are encouraged to set up one. They will otherwise receive their SEC by cheque.

  15. When will I receive payment for the SEC?
  16. ​​​​SEC will be paid in September of the same year for work done from January and June, and March of the following year for work done from July and December.

    ​​​Please refer to the table below for the payment months.

    ​​
    Employees on the Payroll​ Deadline for employers to make CPF contributions to receive SEC Payment Month ​​for SEC
    January to June 14th of the subsequent month
    E.g. 14 February for employees on the January payroll
    September of the same year
    July to ​December 14th of the subsequent month
    E.g. 14 January of the following year for employees on the December payroll
    March of the following year

  17. My cheque has expired. Can I request for an reissuance of my SEC cheque?
  18. ​​​​​​​​​​​​​​​​​Employers are encouraged to bank in the cheque(s) within 6 months from the cheque issuance date. If the cheque(s) has expired, please write to us at sec@mom.gov.sg before the dates stated in the table below in order for us to reissue the cheque(s) to you.

    If you wish to receive future SEC payments directly in your business bank account, please register it with the CPF Board.​


    ​​ SEC payment made in​ For assessment period Cheque reissuance requests to reach us by
    September 2016January 2016 – June 2016​10 April 2017
    March 20​17​​July 2016 – December 201610 October 2017
    September 2017​​​​January 2017 – June 201710 April 2018
    ​​March 2018July 2017 – December 201710 October 2018​
    ​September 2018​​​​January 2018 – June 2018​10 April 2019​
    ​​March 2019July 2018 – December 2018 10 October 2019
    September 2019​​​​​January 2019 – June 2019​10 April 2020
    ​​March 2020July 2019 – December 2019 10 October 2020
    ​​ ​ ​ 
  19. I received the SEC cheque but do not have a business bank account. What should I do?
  20. You should open a business bank account and register it with CPF Board. This way, you can receive future SEC payouts via GIRO easily.

    If your business does not have an existing bank account, and you are unable to open one, please email to us at sec@mom.gov.sg before the dates stated below and state your reasons for not being able to open an account. We will review your case and advise you on the actions that you need to take in order to receive the SEC payment.

    ​For SEC payment made in
    For assessment period​
    You need to email us by​
    ​September 2017
    January - June 2017​
    March 2018​
    March 2018​July - December 2017​September 2018​
    ​September 2018
    ​January - June 2018
    March 2019​
    March 2019​July - December 2018​September 2019​
    September 2019​January - June 2019​March 2020​
    March 2020​July - December 2019​September 2020​


    Upon advice by SEC team and if you are required to fill in a Letter of Authorisation (LOA), please refer to the Step-By-Step Guide on how to fill in the form.

  21. My business ceased operations after assessment/halfway through the assessment period. I have made CPF contributions to my Singaporean employees. Will I still receive SEC?
  22. ​​You will be assessed for the ​SEC and notified of your payment as long as CPF contributions to eligible employees were made. If your business bank account has been terminated following the cease of business operations, please write in to the SEC team (sec@mom.gov.sg) with a copy of your business profile and SEC payment letter. We will review your case and advise you on the actions you need to take in order to receive the SEC payment.

  23. Can I receive SEC payments without making CPF contributions to my employees?
  24. ​​The SEC is intended to provide employers with continuing support in hiring older Singaporean employees. Employers must make the mandatory CPF contributions to their employees in order to qualify for SEC.

  25. As an employer, do I need to pay tax on the SEC payments?
  26. ​​Yes, SEC payments are taxable as they are considered revenue receipts.