What is Absentee Payroll Funding in Singapore?

Key Takeaways

• Eligibility Basics: Must be Singapore-registered, fully sponsor the training, and make CPF contributions for claimed employees.
• Eligible Employees: Singapore Citizens, PRs, and LTVP+ holders in courses on the Course Directory for Business.
• Outside Working Hours: An overtime HR policy or MOM-approved allowance is required to claim funding for after-hours training.
• One Allowance Per Course: Each trainee qualifies for one form of wage support per course.
• Funding Amount: S$4.50/hour, capped at S$100,000 per company per calendar year, for Tier 1 or Tier 2 courses.
• Lower-Wage Worker Support: Singapore Citizens earning S$2,500 or less monthly receive 95% of their basic hourly salary, up to S$13/hour.
• How to Claim: Notify your training provider, submit the emailed AP application, and declare hourly salaries via the AP portal using Corppass.

In Singapore, investing in employee training can strengthen your business, but it also has added payroll costs when staff are away from work.

Absentee Payroll Funding helps ease that burden by supporting employers who continue paying employees during approved training. For small businesses especially, it can make workforce upskilling more practical and affordable.

But how exactly does the scheme work, and can it help with employee leave payments? We explore these aspects in detail below.

What is Absentee Payroll Funding in Singapore?

Absentee payroll (AP) funding is a grant that helps fund manpower costs incurred when employers send employees for training courses under the Skills and Workforce Development Agency (SWDA).

Employees must complete the training course first before you can make an AP funding claim.

Related Read: Important Things to Know About Payroll Management in Singapore

What Are the Eligibility Criteria for Absentee Payroll Funding in Singapore?

You must meet all of these criteria:

1. Your company must have been registered or incorporated in Singapore
2. The training course must be SWDA-funded and found in the Course Directory for Business
3. The employee(s) you are claiming for must be fully sponsored for the training, and be either a:
   • Singapore Citizen
   • Singapore Permanent Resident
   • Long Term Visitor Pass Plus (LTVP+)
4. You must be making CPF contributions for the employee(s)

Training Conducted Outside of Working Hours

To qualify for AP funding for training conducted outside of working hours, companies must implement an HR policy that accounts for the payment of overtime pay to employees for these training hours and pay employees overtime pay for these hours according to the policy.

According to MOM, an allowance to be paid to employees for training conducted outside their working hours can be considered in lieu of overtime pay. The amount of this allowance to be paid must adhere to the rate(s) set out on MOM’s website.

Funding for an individual trainee is limited to one form of training allowance, AP or salary support per training course. If a trainee participates in multiple employer-sponsored courses at the same time, the AP funding disbursed to the employer may be adjusted accordingly so that only one course can qualify for wage compensation at any point in time.

Note that LTVP+ holders do not qualify for subsidies for part-time and full-time MOE-funded full qualification programmes at the Institute of Technical Education (ITE), Polytechnics and Autonomous Universities.

How Much is the AP Funding Amount?

AP funding has been at the current amounts since 1 Jul 2023:

How to Claim AP Funding

1. Inform the course training provider about the AP funding. After the course is complete, they will start the claim process in the Training Partners Gateway
2. An email to complete your AP application will be sent to you. Note that this does not happen immediately after the course ends; rather, it depends on the overall claim process. Note that Corppass is required to log in
3. When you have received the email, log in to the Claim Absentee Payroll funding, under the “AP Funding” tab, and declare your employees’ hourly salary information before CPF deduction

If your claim is approved, you will get the funding disbursed to your corporate PayNow within 2.5 weeks after submission.

Can Absentee Payroll Funding Cover Both Local and Foreign Employee Payroll?

It generally supports employers who sponsor eligible employees for approved training, but it is mainly intended for the local workforce, such as Singapore Citizens and Permanent Residents. While it extends to LTVP+ holders, it does not cover other foreign employees.

Can Absentee Payroll Funding Help With Employee Leave Payments?

Absentee payroll funding in Singapore can help employers offset wages paid to employees away from work for approved training, so it may reduce payroll costs linked to training-related absences.

However, it does not cover ordinary leave payments such as annual leave, sick leave, or maternity leave. In short, it helps with salary costs during eligible training periods, not general employee leave.

How Does Absentee Payroll Funding Work for Small Businesses in Singapore?

It helps small businesses recover part of the wages paid to employees who attend approved training during working hours. This lowers staff training costs and makes it easier for smaller companies to invest in employee development without taking on the full payroll burden.

Simplify Your Payroll With InCorp

Managing payroll alongside compliance requirements – including keeping records for schemes like Absentee Payroll Funding – can be demanding for any growing business.

InCorp offers comprehensive payroll solutions across Singapore and the APAC region, helping you stay accurate, compliant, and focused on growth. Get in touch with our team to find out how we can support your payroll needs.

About the Author

Germaine Toh

With more than two decades in payroll, Germaine brings hands-on expertise in end-to-end payroll processing and management. She oversees the full payroll cycle, from running precise monthly payroll and delivering payslips on schedule to handling final settlements with care and accuracy. She also offers clear guidance on employment practices, payroll policies, tax clearance procedures, and industry best practices, acting as a reliable first point of contact for related questions.

More on Business Blogs