Employee Training Grants in Singapore: What SMEs Need to Know

Singapore’s government offers robust training grants to help SMEs upskill employees, enhance productivity, and stay competitive. These initiatives reduce financial barriers while fostering a skilled workforce. Below is a breakdown of the most critical grants and their eligibility criteria.

1. SkillsFuture Enterprise Credit (SFEC)

The SkillsFuture Enterprise Credit supports workforce development and enterprise transformation by offering eligible SMEs a one-time credit of S$10,000. This credit offsets up to 90% of out-of-pocket expenses for approved training and transformation programs. Credits expire on June 30, 2025, with new criteria launching in late 2026 for companies with ≥3 resident employees.

2. Enhanced Training Support for SMEs (ETSS)

The Enhanced Training Support for SMEs offers higher course fee subsidies to SME-sponsored employees attending SkillsFuture Singapore (SSG)-supported courses. It covers up to 90% of course fees for certifiable training programs and provides absentee payroll funding of S$4.50/hour, capped at S$100,000/year per company.

3. Productivity Solutions Grant (PSG)

The Productivity Solutions Grant funds IT solutions and equipment adoption to boost efficiency. SMEs can receive up to 50% funding for pre-approved tools like accounting software, cybersecurity solutions, and e-commerce platforms5.

4. Absentee Payroll Funding

Absentee Payroll Funding reimburses employers for salaries paid during employee training sessions. This scheme provides up to S$100,000/year, with claims managed under the Workfare Skills Support Scheme 3 4.

Eligibility Criteria for SMEs

Factor	Requirement
Registration	Incorporated in Singapore
Local Shareholding	≥30% local shareholding by Singapore Citizens or Permanent Residents
Employee Eligibility	Singapore Citizens/PRs (ETSS); no work pass holders
Financial Viability	Ability to sustain training costs

Application Process

Submit applications via the Business Grants Portal.
Check SME status through the Enterprise Job Skills Portal.
Select eligible courses from the SkillsFuture Course Directory.

Challenges and Considerations

Some grants exclude foreign workers or part-time staff from eligibility.
Deadlines for programs like SFEC expire by June 2025.

Conclusion

Singapore’s training grants empower SMEs to invest in employee development without financial strain. By leveraging SFEC, ETSS, PSG, and Absentee Payroll Funding, businesses can upskill workers, adopt technology, and drive long-term growth. For tailored advice, visit the SkillsFuture Singapore portal or consult Enterprise Singapore.

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