From 2017 onwards, employers hiring Singaporean workers aged 55 and above, and earning up to $4,000 will continue to receive wage-offsets, tiered by age (see table below).
| 55 - 59 | Up to 3% of monthly wage |
| 60 - 64 | Up to 5% of monthly wage |
| 65 & above | Up to 8% of monthly wage |
In 1 January 2015, an additional wage offset of up to 3% of an employee's monthly wages was introduced to encourage employers to voluntarily re-employ Singaporeans aged 65 and above. At Budget 2017, it was announced that this additional wage support would be extended from 1 July 2017 to 31 December 2019 to encourage the voluntary re-employment of older Singaporeans who would not be covered by the new re-employment age of 67, i.e. individuals born before 1 July 1952 and those above age 67 on 1 July 2017.
Taken together, this means that employers who hire workers not covered by the re-employment age of 67 will receive an SEC of up to 11% of an employee’s monthly wages.
The SEC/ASEC payout formula for work done from 1 January to 31 December 2019, and the extended period of 1 January to 31 December 2020 is as follows :
| Income of employee in a given month ($) |
| SEC/ASEC for the month ($) for employers who hire Singaporeans |
|
Aged between 55 and 59 (i.e. >=55yrs 0mths and <=59yrs 11mths) |
Aged
between 60 and 64 (i.e. >=60yrs 0mths and <=64yrs 11mths) |
Aged between 65 and 67 (i.e. >=65yrs 0mths and <67yrs 0mths) |
Aged 67 and above (i.e. >=67yrs 0mths) |
|
Born on or after 1 July 1952 |
Born before 1 July 1952 |
|
Up to 3,000 | 3% of wage | 5% of wage | 8% of wage | 11% of wage | 11% of wage |
|
> 3,000 to 4,000 | 360 – (0.09*wage) | 600
– (0.15*wage) | 960 – (0.24*wage) | 1,320 – (0.33*wage) | 1,320 – (0.33*wage) |
The amount of SEC/ASEC payouts employers will receive per month for 1 January 2019 to 31 December 2020 is in the table below.
| Income of employee in a given month ($) |
| SEC/ASEC 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 65 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] |
|
500 | 15.00 | 25.00 | 40.00 | 55.00 | 55.00 |
|
1,000 | 30.00 | 50.00 | 80.00 | 110.00 | 110.00 |
|
1,500 | 45.00 | 75.00 | 120.00 | 165.00 | 165.00 |
|
2,000 | 60.00 | 100.00 | 160.00 | 220.00 | 220.00 |
|
2,500 | 75.00 | 125.00 | 200.00 | 275.00 | 275.00 |
|
3,000 | 90.00 | 150.00 | 240.00 | 330.00 | 330.00 |
|
3,250 | 67.50 | 112.50 | 180.00 | 247.50 | 247.50 |
|
3,500 | 45.00 | 75.00 | 120.00 | 165.00 | 165.00 |
|
3,750 | 22.50 | 37.50 | 60.00 | 82.50 | 82.50 |
|
≥4,000 | 0 | 0 | 0 | 0 | 0 |
The SEC payout reduces linearly for monthly wages between $3,000 to $4,000.