The Singapore Government has lowered the cost of hiring older workers. As part of the 2011 Budget Initiatives to support employers, the Government has introduced a one-off Special Employment Credit (SEC).
Effective 1 Jan 2011, the SEC aims to make it easier to employ low-wage Singaporeans aged 55 and above. The Government hopes this measure will help boost the employment rate of this group of workers from 59% in 2010 to 65% by 2015. The SEC will end in December 2013.
Employers will recieve an SEC for each Singaporean employee aged 55 and above and earning up to S$1,700 per month. The SEC will be between 50% and 80% of employer CPF contributions depending on the age of the employee.
The SEC will be paid in March and September each year.
Singaporean employees aged above 55 and earning up to $1,700 will be eligible.
For employers who make regular CPF contributions, the CPF Board will automatically make assessments and notify them by post before SEC grants are disbursed. Employers will recieve the SEC in the accounts that are registeded with the CPF Board. Employers without a valid GIRO account will recieve the credits via cheque.
For more details, see the MOM Factsheet.