%20copy.png)
SkillsFuture Enterprise Credit (SFEC)
What is SFEC?
The SkillsFuture Enterprise Credit (SFEC) provides funding support to encourage employers to further develop their capabilities and to boost their employees' skill set. Eligible employers will receive a one-off S$10,000 credit per firm to cover up to 90% of Out-Of-Pocket (OOP) expenses on qualifying costs for supportable initiatives, over and above the support levels of existing schemes.
How to optimise the SFEC?
The one-off S$10,000 credit can be used for the following 2 categories
a. Enterprise Transformation
• Productivity Solution Grants (PSG)
• Enterprise Development Grant (EDG)
• Market Readiness Assistance (MRA)
Only a maximum of S$7,000 of the SFEC can be used under this category. For company that has successfully received
the partial funding for the above programme can further claim up to 90% of the unfunded portion.
Example
Enterprise A received approval for PSG Grant application to implement Xero Cloud Accounting system. After getting the
80% funding for PSG, Enterprise A can further claim up to 90% of the balance through SFEC.
Package Price for Xero S$ 5,000
Less 80% from PSG Grant S$ 4,000
Balance S$ 1,000
Less 90% from SFEC S$ 900
Balance Payable S$ 100
With both of the PSG grant and SFEC, Enterprise A only need to pay S$100 for a full Xero Cloud Accounting System that
worth over S$5,000
*** If the E-Invoice Registration Grant (ERG) is applicable, companies can further claim another S$200 to offset the
full cost.
b. Workforce Transformation
Job redesign initiatives, and curated training programmes by SkillsFuture Singapore (SSG) and Workforce Singapore
(WSG), such as training courses aligned to the Skills Framework, Professional Conversion Programmes and sector-
specific programmes. The full sum of up to S$10,000 of credit can be used for this category.
• Skills Framework-Aligned Courses
• Professional Conversion Programme (PCP)
• Place-and-Train Programmes
For enterprises with employees who have undergone the training programme can claim up to 90% of the unsupported
course fees.
Example
Enterprise A sent one of their employees for a relevant Skill Framework-Aligned course under the 'Workforce
Transformation' supportable programme. An SSG course fees subsidy of 90% will be applicable. After deducting off the
subsidies, the enterprise still can further claim up to 90% of the balance unfunded course fee through SFEC.
Course Fee S$ 1,000
Less SSG Course Fees Subsidy (90%) S$ 900
Balance S$ 100
Less 90% from SFEC S$ 90
Balance Payable S$ 10
After both of the Skills Development Funding and SFEC Funding, Enterprise A only needs to pay S$10 for every
employee sent to the training
Eligibility
The employers need to meet the following requirements to qualify for SFEC
• Have at least 30% of local equity
• Have contributed at least S$750 Skills Development Levy over a qualifying period
• Have employed at least three Singapore Citizen (SCs) or Permanent Residents (PRs) every month over the same period
of time.
There will be 4 qualifying periods:
i ) 1 April 2019 - 31 March 2020
ii ) 1 July 2019 - 30 June 2020
iii) 1 October 2019 - 30 September 2020
iv) 1 January 2020 - 31 December 2020
*All the qualified employer will be informed in writing. There will be no qualification of employers after the last period.
There is no need to apply for the SFEC. Employers that fulfil the eligibility criteria will be informed by Enterprise Singapore in writing.
Frequently Asked Questions
What is the Skills Development Levy (SDL) and what is the purpose?
• Skills Development Levy (SDL) is a mandatory contribution by employers, as stipulated
in the Skills Development Levy Act (Chapter 306). It was introduced on 1 October 1979
to encourage emploers to upgrade their employees skills SDL collections are
channelled into the Skills Development Fund (SDF), which support a wide variety of
skills upgrading programmes and activities. The SDL and SDF are administered by
SkillsFuture Singapore (SSG).
• All employers are required to pay SDL. The amount of SDL payable is prescribed in
section 3 of the SDL Act. With effect from 1 October 2008, every employer is required
to contribute 0.25% of the monthly remuneration of every employee on their payroll
subject to:
- A minimum of $2 (for employees earning $800 or less a month)
- A maximum of $11.25 (for employees earning $4,500 or more a month)
to pay SDL for any month to compute and pay the SDL within 14 days after the end of
that month.
• For more information on SDL, please visit
www.sdl.ssg.gov.sg. For further clarifications
on the SDL contributions, please contact the SSG hotline at 6785 5785.
As an employer, if I am liable to pay at least $750 SDL for a qualifying period but I did not pay up on time, can I still be eligible for SFEC?
SDL contributions (including arrears payments) made after the closure of the respective qualifying period will not be considered for SFEC eligibility. Only contributions for the current and upcoming qualifying periods will be considered.
Are employers required to maintain the minimum $750 Skills Development Levy contribution and employ a minimum of 3 Singapore Citizens (SCs) or Permanent Residents (PRs) after qualifying for the SFEC?
An employer who qualifies for the SFEC at any of the four qualification periods will be eligible for the SFEC credits for the duration of the programme. No further checks on eligibility will be conducted subsequently.
Can non-business entities qualify for SFEC?
While SFEC is open to all employers who meet the qualifying criteria, SFEC can only be used on programmes or courses where the base programmes or courses are eligible to the entities.
non-business entities includes charities, Voluntary Welfare Organisations, Institutions of a Public Character, associations, and cooperative societies but excludes government agencies and subsidiaries.
When do employers need to embark on the supportable programmes in order to utilise SFEC?
• Upon qualification, employers will be able to use SFEC on supportable programmes
applied on or after 1 April 2020.
• Supported training courses that commence from 1 April 2020 are eligible for SFEC, with
final claims to be submitted by 30 June 2023. The credit will only be disbursed upon
approval of claims
Will the unused credit be reimbursed to the employer upon expiry of the scheme?
Upon expiry of the scheme, the unused Credit will be forfeited.
Who should I contact for more information on SFEC?
Please contact Enterprise Singapore at enquiry@enterprisesg.gov.sg for assistance should you have questions on SFEC and on your eligibility etc.
How should I make a claim for the supportable programmes in order to utilise SFEC?
• The final claim for the projects or courses have to be submitted by 30 June 2023.
Employers are required to follow the claim processes and requirements indicated by the
respective agencies for the SFEC-supportable programmes.
How will employers receive the SFEC reimbursement?
• Credit reimbursement will be by GIRO or Paynow payment to the employer's company
account as registered with IRAS.
• Company status must be 'LIVE' to receive the credit reimbursement
Can employers choose which programmes to utilise the SFEC credit?
Credit disbursement will be based on final claims that are processed on a "first-come-first-served" basis. More details will be released to eligible employers.