Skills Future Enterprise Credit (SFEC)

SFEC

Skills Future Enterprise Credit (SFEC)

With effect from 1 April 2020, the government will be providing a once-off $10,000 SFEC credit to encourage companies to further develop their capabilities and to boost their workers’ skills sets. This credit will be used to defray up to 90% of such out-of-pocket expenses.

UPDATE: Budget Announcement 2022

SFEC has been extended to cover qualifying periods FROM 1 Jan to 31 Dec 2021.

Employers who have met the following conditions from 1 Jan to 31 Dec 2021 may use their SFEC for supportable programmes on or after 1 April 2022.

  • Have employed at least three Singapore Citizens (SCs) or Permanent Residents (PRs) every month over the qualifying period; and
  • Have not been previously qualified for SFEC; and
  • Are not in default of their SDL contributions during the qualifying period and do not have an inactive ACRA status during qualification.

Claims must be submitted by 30 June 2024.

How to use?

The $10,000 credit can be used for the following 2 categories:

1. Enterprise Transformation (Only up to $7,000 of credit can be used)

  • Productivity Solutions Grant (PSG)
  • Enterprise Development Grant (EDG)
  • Market Readiness Assistance (MRA)

Companies that have successfully received partial funding through the above programmes, can further claim up to 90% of the unfunded portion. However, only a maximum of $7,000 SFEC credit can be used under this category.

Case Example

Company ABC received approval for their PSG application to implement an accounting system. The package price is $5,527. After getting 70% funding from PSG, Company ABC can still further claim up to 90% of the balance unfunded cost through SFEC. With both the subsidies, Company ABC bears only $165.81 for a full cloud accounting software worth over $5,500!

Package Price for Xero $ 5,527.00
Less 70% funding from PSG $ (3,868.90)
Balance unfunded $ 1,658.10
Less 90% funding from SFEC $ (1,492.29)
Balance payable $    165.81

** If E-Invoice Registration Subsidy is applicable, companies can further claim another $200 to offset the full cost of the system.

2. Workforce Transformation – full sum of up to $10,000 can be used

    • Skills Framework-Aligned Courses
    • Professional Conversion Programme (PCP)
    • Place-and-Train Programmes

Similarly, companies with employees who have undergone the above training programmes can also further claim up to 90% of the unsupported course fees. The full SFEC credit of $10,000 can be used under this category.

Case Example

Company XYZ sent one of their employees for a 2-day Digital Marketing course under the Skills Framework. The original course fee was $480. Under the Skills Development funding, a $25 funding would be provided for every hour of training. After getting this funding, Company XYZ can still further claim up to 90% of the balance unfunded course fee through SFEC. Eventually, Company XYZ only needs to pay $8 for every employee sent for this training!

Course Fee $ 480.00
Less Skills Devt funding ($25x16hrs) $ 400.00
Balance unfunded $   80.00
Less 90% funding from SFEC          $   72.00
Balance payable $     8.00

Who is eligible?

To be eligible for SFEC, companies must fulfil the following 3 conditions:

  1. Have at least 30% local equity
  2. Have contributed at least $750 Skills Development Levy (SDL) in the preceding 12 months prior to application (around 5 ~ 10 employees depending on the monthly salary)
  3. Have employed at least 3 SC/PR in each of the preceding 12 months prior to application