SINGAPORE - Employers will receive the first payment of the Temporary Employment Credit (TEC) from the government by October 30, the Ministry of Manpower said in a statement on Wednesday (Sep 30).
With this payment, over 169,000 employers will receive a total of S$356 million for the period of January to June 2015. Eligible employers will be notified from October 6 onward.
The TEC was part of the Budget 2014 initiatives rolled out to help employers alleviate increasing wage costs in Singapore.
Specifically, the TEC aims to help employers cope with the one percentage point rise in the CPF contribution rates to the Medisave account, a requirement implemented in January this year. From next year, it will be enhanced to also help cope with higher CPF contribution rates for older workers.
This programme, with a S$1.7 billion budget, will run for three years until 2017, during which TEC payments will be made twice a year in April and October.
Employers will receive the TEC payments in bank accounts registered with the CPF Board for CPF contributions. Those without valid accounts will receive the payments by cheque.