Useful Information for Employers

How much SEC can employers receive?

​​​​​​​​​​​​​​​​​​​​​​​​​​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 $275 for a Singaporean employee born before 1 July 1952 or aged 67 and above.