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Senior Employment Credit (SEC) guide for employers in Singapore

As the workforce ages, it becomes increasingly important for businesses to adapt and provide opportunities for senior workers to remain economically active. The Senior Employment Credit (SEC) offers financial incentives to Singaporean employers who hire or retain older workers. Whether you are an employer looking to diversify your workforce or a senior employee looking to better understand your job prospects, this guide will help you maximise the benefits of the Senior Employment Credit. Let's delve into it! 

What is the Senior Employment Credit (SEC)?

The Senior Employment Credit (SEC) provides wage offsets to assist employers who employ Singaporean workers in adjusting to the higher Retirement Age and Re-employment Age. Older age groups will receive more support.

Tip: Explore retirement and re-employment in Singapore in our comprehensive guide.

Who qualifies for the Senior Employment Credit (SEC)?

All employers who (1) employ Singapore citizens aged 60 and older, (2) earn a monthly wage of up to $4,000, and (3) have made timely mandatory CPF contributions for the employee will be eligible for the 2023-2025 payout.

Note: Wages paid to business owners or employers trading in their personal capacity are not subject to the SEC, even if they make CPF contributions for themselves through their entity.

How do employers apply for the Senior Employment Credit (SEC) payouts?

Employers do not need to apply for the payouts. IRAS will notify eligible employers electronically of the amount payable to them based on their Income Tax/GST notification preferences, which have been updated with IRAS. 

To receive timely notifications when your notices are ready for viewing, go to the IRAS website and update your notification preferences in myTax Portal.

When will employers receive the Senior Employment Credit (SEC) payouts?

For wages paid from January to June, employers will receive the payout in September the same year. 

For wages paid from July to December, employers will receive the payout in March the following year.

How is each Senior Employment Credit (SEC) payout computed?

Employers will receive up to 8% of wages paid to Singaporean workers aged 60 and above who earn up to $4,000 per month from 1 January 2023 to 31 December 2025.

Monthly SEC payouts per employee for 2023:

Age GroupUp to $3,000>$3,000 to <$4,000
Aged between 60 and 64(>=60 years and <65 years)3% of wage$360 – (0.09 x wage)
Aged between 65 and 67(>=65 years and <68 years)5% of wage$600 – (0.15 x wage)
Aged 68 and above(>=68 years)8% of wage$960 – (0.24 x wage)

Monthly SEC payouts per employee for 2024 and 2025:

Age GroupUp to $3,000>$3,000 to <$4,000
Aged between 60 and 64(>=60 years and <65 years)2% of wage$240 – (0.06 x wage)
Aged between 65 and 67(>=65 years and <68 years)4% of wage$480 – (0.12 x wage)
Aged 68 and above(>=68 years)7% of wage$840 – (0.21 x wage)

For example:

Jack is 62 years old and earns $3,500 monthly, so his monthly SEC payout in 2024 = $240 – (0.06 x $3,500) = $30

How are payouts calculated for employees who work for two or more employers?

Each employer will receive the payout based on the wage that they paid that employee.

For example:

Alice turns 65 and is working for two jobs:

  • Job A: She earns a monthly wage of $2,500.
  • Job B: She earns a monthly wage of $1,800.

Referring to the SEC payout table for 2024:

  • SEC payout for Job A = 4% x $2,500 = $100.
  • SEC payout for Job B = 4% x $1,800 = $72.


  • Employer A would receive a monthly SEC payout of $100.
  • Employer B would receive a monthly SEC payout of $72.

Does the company have to pay taxes on the payout?

The payout will be taxable in the year of receipt.

Although the Senior Employment Credit is a wage offset designed to support senior workers' employment, the payout is considered revenue because it is directly related to their businesses’ operating costs. 

Individuals (including sole proprietors) and partnerships are not required to declare scheme payouts in their income tax returns (Form B/B1 or Form P), as IRAS will automatically include them in their tax assessments for the relevant YA.

Companies must, however, declare the payout received in their income tax return (Form C/Form C-S) for the relevant YA.

How do employers receive the Senior Employment Credit (SEC) payouts?

In accordance with Singapore's Smart Nation efforts, all payouts will be made via GIRO or PayNow Corporate. No cheques will be issued for the payouts.

  • Payouts will automatically be credited to employers' GIRO bank accounts for Income Tax/GST. 
  • Those without GIRO accounts will have their payout credited to a bank account registered with PayNow Corporate. 
  • Employers who are not already on these direct crediting modes must sign up for GIRO or PayNow Corporate in order to receive their payouts.

Can IRAS make the SEC payout to a third party?

No. The payout can only be paid to the employer that made CPF contributions for its employees.

How do employers request breakdowns of their payouts?

You may put up a request for a detailed breakdown of the individual salaries of your employees.

As an employer, can I decline the SEC payout if I do not need the support?

Yes. You can email askpayout@iras.gov.sg and indicate whether you are declining the next payout or all future payouts of the specific scheme(s).

Can employers appeal to qualify for the Senior Employment Credit (SEC)?

For the Senior Employment Credit (SEC), employers have up to 2 months from the month of payout to lodge an appeal. 

For example:

If the payout is in March, employers must complete the SEC appeal form and send it via email to SEC_EECAppeal@iras.gov.sg by 31 May. 

Late appeals, i.e., those received after the 2-month window, will not be considered.

What are the penalties for abusing Senior Employment Credit (SEC)?

The government takes any attempt to abuse the scheme very seriously. Offenders may have their payouts denied and charged under Section 420 of the Penal Code, which carries a maximum penalty of ten years in prison and a fine.

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