Hiring and retaining staff is one of the biggest cost pressures for Singapore SMEs. Several government schemes directly reduce your wage bill — some through automatic payouts, others through credits that offset training costs. This guide covers every scheme that touches salary and wage expenses, who qualifies, and how to access support.
Quick Pick
| Grant | Who it’s for | Max support | Auto or apply? |
|---|---|---|---|
| PWCS | Employers raising wages for lower-wage locals | Varies by wage increase | Auto-disbursed |
| JGI | Employers hiring mature workers and locals | Up to 50% of monthly wages | Auto-disbursed |
| SFEC | Employers investing in workforce transformation | S$10,000 credit | Auto-applied |
| PSG | SMEs adopting IT solutions to reduce manual labour | S$30,000/year (50%) | Apply on BGP |
| EDG | SMEs automating or restructuring for productivity | 50–70% of project costs | Apply on BGP |
Progressive Wage Credit Scheme (PWCS)
PWCS co-funds wage increases for lower-wage Singaporean employees. It is the most direct salary support scheme available — no forms to fill, no portal to check. IRAS calculates your payout automatically based on CPF contribution records.
How it works: If you raise wages for employees earning up to S$2,500/month, the government co-funds a percentage of the increase. The payout is deposited to your IRAS-registered bank account without any application.
Who qualifies: All Singapore-registered employers who increase local employee wages and make the corresponding CPF contributions. Sole proprietors and partnerships are excluded from this scheme.
What to do: Raise wages and keep CPF contributions current. Verify your IRAS bank account details are up to date so disbursements reach you without delay.
Learn more: PWCS full guide
Jobs Growth Incentive (JGI)
JGI provides wage offsets to encourage employers to hire locals, particularly mature workers aged 40 and above, persons with disabilities, and ex-offenders. Like PWCS, it requires no application — payouts are calculated from CPF data.
How it works: For each eligible hire, the government offsets a percentage of the employee’s monthly wages for up to 12 months. The support level is higher for mature workers and persons with disabilities.
Who qualifies: Singapore-registered employers who expand their local workforce by hiring eligible employees. The new hire must be a Singapore Citizen or Permanent Resident, and must not have been previously employed by the same employer.
What to do: Hire eligible employees and make timely CPF contributions. Ensure CorpPass contact details are current so you receive disbursement notifications.
Learn more: JGI full guide
SkillsFuture Enterprise Credit (SFEC)
SFEC is a one-off S$10,000 credit for eligible employers to invest in workforce transformation and enterprise capability building. While not a direct salary subsidy, it offsets the cost of training your team — which reduces the need to hire externally and lowers overall wage costs.
How it works: Check your SFEC balance on the Business Grants Portal or SkillsFuture for Business. When you enrol staff in eligible programmes (PSG, EDG, MRA, Skills Framework-aligned courses), the credit is automatically deducted from your out-of-pocket costs after your programme claims are approved.
Who qualifies: Employers who have contributed at least S$750 in Skills Development Levy (SDL) over a qualifying period and employed at least three Singapore Citizens or Permanent Residents every month during that period. Eligible companies are notified by EnterpriseSG via CorpPass.
Key constraint: SFEC must be fully utilised by 31 December 2028. Up to S$7,000 can be used for enterprise transformation programmes (PSG, EDG, MRA); the remainder can be used for workforce training with no cap.
Learn more: SFEC full guide
PSG and EDG: Indirect Wage Support
PSG and EDG do not pay salaries directly. However, they fund automation and productivity solutions that reduce the number of man-hours required for the same output — effectively lowering your per-unit labour cost.
Productivity Solutions Grant (PSG)
PSG funds 50% of pre-scoped IT solutions and equipment purchases, capped at S$30,000 per company per financial year. If you deploy an inventory system or customer management tool that saves two hours of manual work per day, that is wage cost avoided.
Learn more: PSG full guide
Enterprise Development Grant (EDG)
EDG funds 50–70% of projects that drive business transformation, innovation, or internationalisation. Automation projects that replace repetitive tasks fall under EDG’s scope.
Learn more: EDG full guide
How to Stack These Grants
These schemes are designed to complement each other. A typical combination for a growing SME:
- Raise wages for lower-wage employees → PWCS auto-disburses co-funding, no action required.
- Hire a mature local worker → JGI auto-disburses wage offsets for up to 12 months.
- Use SFEC credit → Offset PSG or EDG out-of-pocket costs, or pay for staff training programmes directly.
- Apply for PSG → Fund a productivity tool that reduces manual work hours, lowering future wage pressure.
You can receive PWCS and JGI simultaneously if you both raise wages and make eligible new hires. SFEC stacks on top of PSG and EDG — it offsets your share of costs after the grant funding is applied.
Document Checklist
For auto-disbursed schemes (PWCS, JGI):
- CPF contributions are current and accurate for all local employees.
- IRAS-registered bank account (GIRO or PayNow Corporate) is active and correct.
- CorpPass administrator contact details are up to date to receive disbursement notifications.
For SFEC:
- Log in to the Business Grants Portal to confirm your S$10,000 credit is available.
- Identify SFEC-eligible programmes aligned to your business needs before committing spend.
- Submit final claims for all SFEC-supported programmes by second half of 2026.
For PSG / EDG (if using alongside SFEC):
- Prepare project scope and cost breakdown before applying.
- Apply on the Business Grants Portal before starting the project.
- Keep all vendor invoices, receipts, and proof of payment for claims submission.
- Budget for full upfront vendor payment — reimbursement arrives after claim approval.
Common Mistakes
Not verifying IRAS bank account details. Auto-disbursed payouts from PWCS and JGI go to the bank account registered with IRAS. If that account is inactive or incorrect, payments are delayed or returned. Check this before the disbursement cycle.
Missing the SFEC utilisation deadline. SFEC credit expires on 31 December 2028. Many SMEs receive the credit and forget to deploy it. Map your training and transformation plans against the credit balance now.
Applying for PSG after starting the project. PSG requires pre-approval before you begin the project or make any payment. Retroactive applications are rejected. Apply first, then proceed.
Treating PWCS as a salary substitute. PWCS co-funds a portion of wage increases — it does not replace the full salary cost. Plan budgets assuming you cover the majority of the wage increase.
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