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Temporary Employment Credit

As an employer, you can receive wage offsets under the Temporary Employment Credit (TEC) scheme between 2015 and 2017 to help you to adjust to CPF changes.

Eligibility

Your eligibility for TEC will be automatically assessed twice a year. To qualify, you must make timely and complete CPF contributions for eligible Singaporean or PR employees.

If you are eligible, you will receive a letter from MOM informing you of the payouts and the payment mode.

When to pay CPF

You have up to 14 days after the end of the month to make the CPF contributions.

If the last day of the grace period falls on a Saturday, Sunday or public holiday, CPF contributions must be paid by the next working day.

Calculate 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
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
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
2015

1%

Up to the Ordinary Wage ceiling of $5,000 per month

Or

Up to CPF Annual Limit of $85,000 per year
(includes Ordinary Wages and Additional Wages earned within the year, if applicable)

$850 Examples of TEC computation for 2015

To give you more time to adjust to the CPF changes, the TEC will end only on 31 December 2017, two years after the most recent CPF changes took effect on 1 Jan 2016. The wage offset will be 1% of wages paid in 2016 and reduced to 0.5% of wages paid in 2017.

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

TEC payouts are taxable as the payout is revenue in nature. For more information on tax treatment for TEC payouts, please refer to the IRAS website.

When will you receive TEC

If you are eligible, you will receive your TEC payouts according to the following schedule:

For employees on the payroll in You will receive TEC in
January to June October of the same year
July to December April of the next year

How to receive TEC

You will receive the TEC payouts in your bank account that is registered with the CPF Board for CPF payments.

For your convenience, you should register your bank account with the CPF Board if you have not done so. Future TEC payouts will then be automatically credited to your bank account.

Otherwise, the payouts will be made by cheque. You must encash your cheques within 6 months, before they expire. All unencashed payouts will be forfeited.

Last Updated: 21 December 2017