What is Absentee Payroll in Singapore? How to Apply

In Singapore, businesses have a unique opportunity to invest in the development of their workforce through the Absentee Payroll (AP) scheme. This government initiative, administered by the Singapore Workforce Development Agency, aims to partially cover the manpower costs associated with sending employees for training or workshops.

It’s a win-win situation, as companies can enhance the skills of their workforce while receiving financial support from the government. In this comprehensive guide, we’ll delve into the details of AP in Singapore, including eligibility criteria and how businesses can make the most of this beneficial scheme.

Understanding Absentee Payroll

The AP scheme is the Singaporean government’s way of encouraging businesses to provide their employees with certifiable skills training. By doing so, employees become more skilled and knowledgeable in their respective fields, which ultimately benefits the company and the nation’s workforce as a whole.

Additionally, this initiative aligns with the mission of statutory boards like SkillsFuture Singapore (SSG) and Workforce Singapore (WSG), which operate under the Ministry of Education. These boards are dedicated to promoting lifelong learning and holistic training and education across the nation.

Eligibility Criteria for Absentee Payroll

To take advantage of AP funding in Singapore, companies must meet specific eligibility criteria. Here’s a breakdown of who qualifies for AP benefits:

1. Company Eligibility:
   • The company must be registered or incorporated in Singapore.
   • Trainees must be fully sponsored by their employer for supportable cost components, such as course fees incurred during training.

Certain industries or sectors might impose supplementary eligibility criteria established by governmental bodies or industry associations. It is crucial to verify with these institutions whether your company aligns with their stipulations.

Government Skills Training Support Classifications

The AP scheme offers different classifications of funding support, each with varying levels of financial assistance:

1. Course Fee Funding:
   • This category sponsors employees for training courses, covering up to 70% of the fees for courses offered by SSG-appointed Continuing Education and Training (CET) centres.
   • For certifiable courses approved by SSG, the sponsorship covers up to 50% of the course fees.
   • Eligible applicants include Singapore citizens, permanent residents, LTVP+ holders, sole proprietors meeting general eligibility criteria, and non-profit organisations unregistered with ACRA, such as Voluntary Welfare Organisations (VWOs).
2. Enhanced Training Support for Small and Medium Enterprises (ETSS):
   • ETSS provides an additional 20% subsidy on top of the baseline course fee subsidies, totalling up to 90% coverage of course fees.
   • Eligible organisations include small to medium enterprises (SMEs) with a Singapore citizen or resident owning at least 30% of local shareholding, up to 200 employees, or annual sales of up to 100 million Singapore dollars.
   • Sole proprietors meeting general eligibility criteria and non-business entities not registered with ACRA can also apply.
3. SkillsFuture Mid-Career Enhanced Subsidy (MCES):
   • MCES offers a 20% increase over the baseline course fee subsidies, providing up to 90% coverage of course fees.
   • Eligible applicants are sole proprietors who meet general eligibility criteria for baseline AP course funding and employees aged 40 or over.
4. Absentee Payroll (AP) Funding:
   • AP funding provides a fixed grant of $4.50SGD per hour of SSG-funded training, with an annual maximum of $100,000 per organisation.
   • Eligible applicants include sole proprietors meeting the general eligibility criteria for baseline AP course funding, non-business entities not registered with ACRA, and individuals who are not full-time national servicemen.

Applying for Absentee Payroll in Singapore

Applying for AP funding is a straightforward process that can help businesses save on labor costs when employees attend training or skills upgrading programs. Here’s a step-by-step guide:

1. Determine Eligibility:
   • Ensure your company meets the eligibility criteria for AP funding, which includes being registered and having local employees attending approved courses or training programs.
2. Gather Documentation:
   • Collect all required documents, such as proof of employee attendance in the course or program, certificates, and letters of enrolment. You will also need information about your company and its employees.
3. Submit Application:
   • Submit your application through the relevant government agency’s online portal or by mail. Ensure that all provided information is accurate and complete to avoid processing delays.
4. Review and Approval:
   • After submission, your application will undergo a review process by the government agency responsible for administering AP funding.
5. Reimbursement:
   • If your application is successful, you will receive notification from the agency regarding approval and details on how to claim reimbursements for AP expenses incurred during employee training or skills upgrading programs.
6. Document Retention:
   • Keep track of all relevant documentation and receipts throughout the process, as they may be required at various stages of verification and reimbursement.

How to Claim Absentee Payroll funding

• AP funding is provided at a fixed rate of S$4.50 per hour.
• Each organisation has a cap of S$100,000 per calendar year for AP funding.

To claim AP funding, you will be required to provide details of your employees’ hourly salaries (pre CPF deduction) via the Enterprise Portal for Jobs and Skills as part of the AP claim process.

All the necessary claim services can be conveniently accessed on the AP funding page. Once your AP Declaration is submitted, the AP funding will be disbursed to you via PayNow within approximately two and a half weeks.

Other Funding Support Programs

In addition to AP funding, there are several other programs available to provide financial support for businesses in Singapore. These programs can help alleviate payroll costs and contribute to the overall growth and success of your organization. Here are a few notable programs:

1. Job Support Scheme (JSS):
   • Designed to help employers retain local employees during economic downturns, JSS offers wage subsidies for a specified period, allowing companies to maintain their workforce during challenging times.
2. SkillsFuture Enterprise Credit (SFEC):
   • SFEC provides a one-time credit payout that can be used by companies to fund employee training and development initiatives. Investing in upskilling your workforce enhances capabilities and increases productivity.
3. Various Grants:
   • Numerous grants are available through government agencies and industry associations, targeting specific sectors or business activities. Examples include the Productivity Solutions Grant (PSG), Enterprise Development Grant (EDG), and Capability Development Grant (CDG).

Conclusion

The Absentee Payroll scheme in Singapore is a valuable initiative that empowers businesses to invest in the development of their workforce. By understanding the eligibility criteria and navigating the application process, companies can benefit from financial support while enhancing their employees’ skills.

Time is money. Let the pro team at Counto take care of your company payroll and compliance. Speak to us directly on our chatbot, email us at [email protected], or contact us using this form.

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