Written By: Matthew OngOn May, 9 2020 - 4 MINUTE READ
Absentee Payroll (AP) funding is a grant to help employers defray the manpower costs incurred when they send their employees for certifiable skills training.
Starting 1st of May 2020 - 31st of December 2020, employers are able to enjoy an upsized absentee payroll of UP to $10/hr (90% of their employees hourly wage) when they send their employees for skills upgrading (training).
Here's how you can visualise your cost and savings:
Michael (Business Owner) wishes to send his full-time employee, Valerie, for TaF.tc's home-based learning WSQ Social Media Marketing 16-hour course during the circuit breaker.
Course Fees Payable:
As an SME, the nett fees after the 90% subsidy for the above course to send his SG/PR employee will be: S$95.23.
Absentee Payroll Calculation:
1) Calculating Hourly Wage:
Valerie is being paid $2,000 a month and works a 44-hour work week, 176-hour per month. Valerie hourly wage is equates to ($2,000 ÷ 176 hours) = $11.36
Government subsidise absentee payroll of 90% of hourly wage equal ($11.36 x 90%) = $10.24 (Of Up to $10/hr)
=> If hourly wage is higher than $10, than the amount has to be rounded down to $10. Otherwise, if it is lower, for example $9.23, it will be taken as that amount per hour.
2) Checking if the course training hours is within Valerie's working hours:
If Valerie works between 12pm - 8pm and the course is between 9am - 6pm for two days.
Training hours within working hours = 5 hours x 2 days = 10hrs
=> Michael is able to claim a total of $100 (10hrs x hourly wage of $10) for employee who is absent from work
Training hours outside of working hours = 3hours. x 2 days = 6hrs
=> Based on Michael's internal HR company policy, they are required to pay Valerie overtime of 6hrs x overtime rate x hourly rate.
Regardless of whether the working hours are within or outside Valerie's working hour, the absentee payroll claim will go straight to the company. Michael will receive a total of $160 (16 hours of course X $10/hr of hourly wage)
If the company would like to justify training conducted outside employees working hours and not pay over time rate, they can submit their supporting documents (Flexi-work arrangement, circuit breaker change in working hours, etc), however, it will be subjected to SSG review and approval.
- Company must be registered or incorporated in Singapore
- Company must fully sponsored employees course fees or supportable fees incurred on the training course;
- Trainees must be full-time or permanent part-time employees of the sponsoring company
- Trainees must continue to receive their salary when they attend training;
- Trainees must have achieved at least 75% attendance and attain a "competent" grade in order to be eligible for the absentee payroll claim
- Trainees must be paid overtime pay in accordance with the employer’s Human Resource (HR) policy (for training outside working hours).
Arrange a 10-minute call here with a programme advisor to build a training plan for your company!
How to apply?
1) As an MNC company, do I qualify for the upsized absentee payroll of UP to $10/hr of 90% of their employees hourly wage?
Yes MNCs inclusive. From 1st of May 20, the rates applies to all companies registered in Singapore.
2) As a sole proprietor / self-employed, can I claim as an owner?
Yes you can, it's owner's inclusive.
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