Absentee Payroll Funding in Singapore: A Guide for Employers

Key Takeaways

• Absentee Payroll reimburses employers for employee wages during approved training.\
• Funding coverage and claim limits were expanded in 2024.
• Employers must be Singapore-registered to qualify.
• Application must be submitted via the EPJS portal.
• Reimbursement is based on actual hourly basic salary.
• Employers must keep supporting documents for audits.
• Claims can be submitted after training is completed.
• Payouts are made through the company’s Corporate PayNow account.

As an employer, you know that employee turnover comes at a high cost. You’re not just paying for their salary; you are also investing in recruitment, onboarding and developing talent. This is why you need to upskill your employees and make them feel supported through courses or training programs.

However, one aspect that often gets overlooked is the time and productivity lost when employees attend training courses or upgrade their skills. While it’s important to equip your team with the right tools and knowledge to excel, the financial burden of paying for both the course fees and employees’ wages during training can be daunting.

This is where absentee payroll funding comes into play. A government support initiative designed to ease the cost of training, it helps Singaporean companies upskill their workforce without breaking the bank. 

This article will outline the key details of absentee payroll funding, including eligibility criteria, how to apply and its benefits. Continue reading below for more information!

What is Absentee Payroll (AP) Funding?

The absentee payroll (AP) funding is a government-backed grant provided to companies to help offset the costs of employee training and workshops. The goal is to help offset part of the manpower costs and encourage employers to support their staff in attending certified skills training.

This funding initiative was introduced by the Singaporean government alongside two statutory boards—SkillsFuture Singapore (SSG) and Workforce Singapore (WSG). These boards collaborate to foster a culture of holistic lifelong learning by providing job training, skills development and education opportunities.

In 2024, there are recent updates to absentee payroll funding, including:

• Increased funding cap – The funding cap has been raised to offer greater financial support for covering employees’ wages during training.
• A broader scope of eligible training – Eligible training programs have been expanded to include a wider variety of courses and providers, especially those specialising in emerging technologies.
• Simplified application process – To ease administrative burdens, the application process is now easier with faster turnaround times and reduced paperwork.
• Flexible training formats – With online and hybrid courses qualifying for funding to suit different learning preferences, training formats now offer more flexibility.
• Extended deadlines – Extended application and funding deadlines allow employers more time to plan and execute training programs.
• Additional funding for critical sectors – Extra funding options are now available for essential industries, such as technology and healthcare.

Benefits of Absentee Payroll Funding

Absentee payroll funding is important for supporting businesses in their mission to develop a skilled and competitive workforce, boost productivity and achieve sustainable growth in a rapidly changing business environment.

Let’s take a closer look at its benefits:

Financial Support

Absentee payroll funding directly supports corporations by subsidising the costs of employee training, making it more accessible for businesses of all sizes.

Encourages Training Investment

By encouraging businesses to invest in training, AP funding allows employees to learn new skills and knowledge, leading to improved performance and adaptability.

Competitive Advantage

Employees who receive relevant training are better equipped to manage job responsibilities, adapt to industry changes and contribute to the company’s success. This, in turn, can lead to higher customer satisfaction, improved business performance and increased market share.

Reduce Employee Turnover

With AP Funding, offering opportunities for employee training and development allows SMEs to attract and retain top talent. Employees are more likely to remain with a company that invests in their professional growth and provides avenues for skill enhancement. This can help lower turnover rates and reduce the costs when recruiting and training new staff.

Eligibility Criteria for Absentee Payroll Funding

The absentee payroll program in Singapore has specific eligibility requirements. Let’s examine who qualifies for this benefit.

Who is Eligible?

To qualify for absentee payroll funding in Singapore, the applicant company must meet the following criteria:

• The company must be registered or incorporated in Singapore. Startups and large companies alike are eligible for absentee payroll funding.
• The employee(s) for whom you are making a claim must be a Singapore Citizen, Permanent Resident or holder of a Long Term Visitor Pass Plus (LTVP+).
• Trainees must be fully sponsored by their employer for eligible cost components like course fees associated with the training course.

In the case of trainees, they should:

• Be full-time or permanent part-time employees of the sponsoring company.
• Continue to receive their salary during training.
• Have achieved at least 75% attendance.
• Complete and pass any examinations/assessments, if applicable.
• Finish the course while employed by the sponsoring company.
• Receive overtime pay per the employer’s HR policy for training conducted outside of working hours.

Keep in mind that non-business entities like VWOs, societies and sole proprietorships are eligible if they meet all the above criteria.

Moreover, to qualify for AP funding, training programs must align with approved courses offered by government-recognized training providers like SkillsFuture Singapore (SSG). These courses can include basic workforce skills and advanced professional certifications.

Industry-specific eligibility criteria may also apply. We highly recommend that you consult official sources like SSG or other relevant agencies to ascertain your company’s specific eligibility before submitting an AP claim.

AP funding is not applicable under certain circumstances, including:

• The trainee is repeating the same course.
• The trainee is already a recipient of funding from a different organisation or agency.
• The trainee is a part-time employee while being a full-time student.
• The trainee is classified as a freelancer or casual employee.
• The trainee is a student participating in on-the-job training.

How to Apply for Absentee Payroll Funding in Singapore

To help you get started, here’s a step-by-step guide on how to sign up for absentee payroll funding:

Step 1: Sign Up For a Corporate Paynow Account

For first-time applicants, click on your bank’s name to access this secure funds transfer service, which is essential for receiving absentee payroll grants in Singapore.

• DBS
• UOB
• HSBC
• OCBC
• MAYBANK
• STANDARD CHARTERED

If your bank isn’t listed, please reach out to their customer service to ask about creating a Corporate Paynow account.

Step 2: Enable Corp Pass Access

To enable Corp Pass access, follow these instructions:

1. Head over to the Corp Pass website.
2. Click on ‘Select Entity’s E-Services’.
3. In the search box, type ‘SSG’.
4. Locate the desired service from SSG and check the box next to it.
5. Click ‘Next’ to proceed.
6. You’ll see a ‘Submit’ button. Tap it to confirm your selection.
7. Click on ‘Assign Selected E-Services’.
8. Locate your name on the list and check the box next to it.
9. Click ‘Next’ to continue.
10. Find the specific e-service you want access to and place a check in the corresponding box.
11. Click ‘Next’ again.
12. Under ‘Authorisation Expiry Date’, select the current date.
13. Finally, click ‘Next’ and tap ‘Submit’ to complete the Corp Pass access setup for this service.

If you’re the business owner, you might want to delegate Corp Pass access to someone in your HR or Finance department.

Step 3: Apply For The Absentee Payroll Funding

Take note of these steps when applying for absentee payroll funding:

1. Visit the Enterprise Portal for Jobs and Skills (EPJS).
2. Log in to the Singpass account with the assigned access rights.
3. Select ‘AP Funding’, then choose the course for which you want to claim Absentee Payroll Funding.
4. On the declaration page, verify the employee details before submitting. Make sure you have your company’s PayNow details, such as the UEN number, as submission will not be possible without them.

EPJS will send businesses the following email notifications regarding Absentee Payroll Funding:

• When trainees have been successfully enrolled in a course by the Training Partner.
• When an Absentee Payroll Declaration is ready for businesses to take action in EPJS.
• When Absentee Payroll Funding has been cancelled.

How Much Absentee Payroll Funding Can You Get?

AP funding is limited to S$100,000 per enterprise per calendar year for all courses starting from January 1, 2022, excluding those under the Workfare Skills Support Scheme.

This yearly cap is based on the date the funding is actually paid out. For example, if a company receives funding in 2023, it counts towards the 2023 cap, even if the course started in the previous year.

Any ongoing AP transactions being reviewed by SSG will also be considered when checking if the yearly cap has been reached.

Other Funding Support Programs You Should Know

Aside from AP funding, Singapore offers a diverse range of funding programs to assist businesses in managing payroll costs and driving growth. Here are other key options:

SkillsFuture Enterprise Credit (SFEC)

The SkillsFuture Enterprise Credit (SFEC) offers a one-off credit of S$10,000 for qualifying businesses to undergo transformation and upskilling through approved programs and courses. 

This includes job redesign initiatives and tailored training programs from SkillsFuture Singapore and Workforce Singapore, such as Skills Framework-aligned courses, Career Conversion Programs and sector-specific initiatives.

Productivity Solutions Grant (PSG)

Launched in April 2018, the Productivity Solutions Grant (PSG) helps Singaporean companies enhance productivity and automate current processes using IT solutions and equipment. Local SMEs can receive up to S$30,000 and improve business productivity.

Enterprise Development Grant (EDG)

The Enterprise Development Grant (EDG) supports initiatives that enable you to upgrade, innovate, expand and transform your business. It covers eligible project expenses, including third-party consultancy fees, software and equipment costs, and internal manpower expenses.

Final Thoughts

As Jeff Bezos famously stated, ‘In business, what’s dangerous is not to evolve.’

That’s why understanding the role of absentee payroll funding in helping upskill your workforce is important. Businesses can provide valuable training opportunities without straining their finances. You won’t have to break the bank to invest in your employees’ development. Instead, you can allocate resources more strategically, ensuring that your team receives the training they need to thrive in an ever-evolving market.

At Medlink, we’re here to support you with our first aid courses. This is your chance to equip your team with essential first-aid skills that prepare them to handle emergencies and create a safer work environment.

We offer Standard First Aid, Occupational First Aid, Basic Cardiac Life Support and CPR + AED, among others. Reach out to our team and get started!

FAQs

How long does it take to process an absentee payroll funding application?

The processing time for absentee payroll funding applications can differ, but it typically takes a few weeks from submission to approval. To help expedite the process, make sure that all required documents are filled out correctly and included with your application.

Is there a maximum number of employees eligible for absentee payroll funding?

There isn’t a fixed maximum. However, each employee’s eligibility is assessed based on their specific situation, including their job role and previous training.

What types of training are covered by absentee payroll funding?

SkillsFuture Singapore funds a wide range of training, from workshops and seminars to certifications and overseas programs. However, it’s important to check the specific guidelines to ensure your desired course is eligible.