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Temporary Employment Credit

As an employer, you can receive wage offsets due to the 1 percentage point increase in Medisave contribution rates. Take a look at what you can receive in 2015 to 2017.

The Temporary Employment Credit (TEC) was announced as a Budget 2014 initiative to help you, as an employer, adjust to the 1 percentage point increase in Medisave contribution rates which took effect in January 2015. With the TEC, you will receive a one-year offset of 0.5% of wages for your Singaporean and Singapore Permanent Resident (PR) employees in 2015.

Enhancement and extension of the TEC

As announced at Budget 2015, the TEC will be further enhanced and extended to help companies adjust to the cost increases associated with:

  • 1% increase in employer CPF contribution rates for older workers.
  • Increase in the CPF salary ceiling.

These CPF changes will take effect in January 2016.

TEC payout

TEC payments will be made based on CPF contributions paid to eligible employees from January 2015 to December 2017.

Year TEC
(% of monthly wages)
TEC annual cap
(based on CPF Annual Limit) per eligible employee
Examples
2016

1%

Up to the Ordinary Wage ceiling of $6,000 per month

Or

Up to CPF Annual Limit of $102,000 per year
(includes Ordinary Wages and Additional Wages earned within the year, if applicable)

$1,020 Examples of TEC computation for 2016
2017

0.5%

Up to the Ordinary Wage ceiling of $6,000 per month

Or

Up to CPF Annual Limit of $102,000 per year
(includes Ordinary Wages and Additional Wages earned within the year, if applicable)

$510 Examples of TEC computation for 2017

For more information on Ordinary Wage and Additional Wage ceilings, please visit CPF website.

TEC payments are taxable as the payout is revenue in nature. For more information, please refer to IRAS' website.
Last Updated: 25 October 2016