More than 169,000 employers to receive Temporary Employment Credit in October 2015

1. The Government will make the first payment of the Temporary Employment Credit (TEC)¹  to employers by 30 October 2015, to help them cope with higher wage costs arising from higher employer CPF contributions. More than 169,000 employers will receive a total of $356 million in TEC for the period of January to June 2015. Eligible employers will be notified from 6 October 2015.

2. The TEC was first announced as a Budget 2014 initiative to help employers cope with a 1 percentage point increase in the CPF contribution rates to the Medisave Account, which took effect from 1 January 2015. It was later announced in 2015 that the TEC will be enhanced and extended till end 2017, to help employers adjust to cost increases associated with the increase in CPF salary ceiling and the employer CPF contribution rates for older workers in 2016. 

3. The TEC will be paid twice a year in April and October to employers that have eligible employees on the payroll between January 2015 and December 2017. It is expected to cost the Government $1.7 billion over the three years.

4. More information on the TEC can be found at www.mom.gov.sg/tec.