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