Senior Employment Credit, Enabling Employment Credit and CPF Transition Offset

Singapore's Senior Employment Credit (SEC), Enabling Employment Credit (EEC) and CPF Transition Offset (CTO) are employer-side wage offsets administered through IRAS. They are separate components: SEC supports employment of older Singaporean workers, EEC supports employment of local persons with disabilities, and CTO offsets part of the increase in employer CPF contribution rates for older workers. The schemes reduce eligible employers' wage or employment costs; they are not direct cash benefits paid to workers and do not replace CPF contribution duties (IRAS, accessed 1 September 2026).

What each wage offset supports

For wages paid from 1 January 2024 to 31 December 2027, SEC provides eligible employers with up to 7% of wages for Singaporean workers aged 60 and above who earn below S$4,000 per month; the actual percentage depends on age and wage. The Government extended SEC through 2027 (IRAS, accessed 1 September 2026).

EEC applies to employers hiring local employees with disabilities aged 13 and above who earn below S$4,000 per month. Its ordinary wage offset is up to 20% of monthly income, capped at S$400 per month per employee. An additional offset of up to 20%, also capped at S$400 per month, may apply for the first nine months when the employee has not been working for at least six months. EEC is available until 2028. Employees eligible for EEC are not eligible for SEC, so the two offsets are not stackable for the same employee (IRAS, accessed 1 September 2026).

CTO is a transitional employer offset equal to 50% of each year's increase in employer CPF contribution rates for each Singapore Citizen or Permanent Resident worker aged above 55 to 70. It is calculated on monthly income paid up to the CPF salary ceiling. CTO is available through 2027, including the 2027 CPF-rate increase announced in Budget 2026 (IRAS, accessed 1 September 2026).

Eligibility and automatic payout boundaries

IRAS states that employers qualify based on the relevant employee, wage, local-status and timely-CPF-contribution conditions; no application is required. SEC covers Singapore Citizens aged 60 and above, EEC covers Singapore Citizens and Permanent Residents with disabilities aged 13 and above, and CTO covers local employees aged above 55 to 70. For EEC, IRAS says the person with disability must also be supported by SG Enable; the age, local-status and wage conditions alone do not establish this scheme-specific disability criterion (IRAS, accessed 12 September 2026). Wages paid to business owners in the defined owner capacities are excluded, as are local government agencies, international organisations and businesses not registered in Singapore (IRAS, accessed 12 September 2026).

For the September 2026 payout, eligible employers with an IRAS GIRO arrangement as at 7 September 2026, or PayNow Corporate registration as at 25 September 2026, are scheduled to receive payment from 30 September 2026. IRAS says all payouts are made through GIRO or PayNow Corporate; no cheques are issued. The normal schedule is September for wages paid from January to June and March of the following year for wages paid from July to December (IRAS, accessed 12 September 2026). The IRAS page was last updated 17 August 2026, so employers should use the live page for later payout notices or eligibility changes (IRAS, last updated 17 August 2026, accessed 12 September 2026).

How to interpret SEC, EEC and CTO

These schemes are computed employer offsets, not universal grants with a single fixed payment. They are not direct worker payments. The headline percentages and caps apply only within the relevant scheme's employee, wage, age, disability, CPF and timing conditions; an employer cannot infer its payout by applying a maximum rate to every worker. IRAS automatically assesses eligible employers and notifies them of the amount, and the payout is taxable revenue for the business in the year of receipt (IRAS, accessed 1 September 2026).