SSG Funding Guide Singapore — Skills Development Fund Explained

What Is SSG Funding?

SSG stands for SkillsFuture Singapore — the statutory board under the Ministry of Education that drives and coordinates workforce skills development. When people refer to "SSG funding," they mean the various training subsidies and grants administered by SSG to help Singaporeans and Singapore-based companies invest in skills.

SSG funding is not a single programme but an umbrella term covering multiple schemes:

• Course Fee Funding — Direct subsidies that reduce the cost of approved courses
• Absentee Payroll (AP) — Grants that offset salary costs while employees are in training
• SkillsFuture Enterprise Credit (SFEC) — A one-off $10,000 credit for eligible companies
• Enhanced Training Support for SMEs (ETSS) — Higher subsidies for smaller companies
• Skills Development Fund (SDF) — The underlying fund that finances these schemes

Understanding the relationship between these programmes is key to maximising your training investment.

The Skills Development Fund (SDF)

The Skills Development Fund is the financial backbone of Singapore's training ecosystem. Established under the Skills Development Levy Act, the SDF is funded by a mandatory levy on employers:

• Levy rate: 0.25% of each employee's monthly remuneration (for employees earning $4,500 or less) or $11.25 per employee (whichever is higher)
• Who pays: All employers in Singapore for every employee (citizen, PR, or work permit holder)
• Minimum levy: $2 per employee per month

Unlike Malaysia's HRDF where employers claim back from their own levy contributions, Singapore's SDF operates as a collective fund. Your levy contributions go into a central pool, and subsidies are drawn from this pool regardless of how much your individual company has contributed.

This means: Even if your company has only been in Singapore for one year, you can access the full range of SSG subsidies immediately. There is no waiting period or balance accumulation required.

SSG Course Fee Funding — The Core Subsidy

The most widely used form of SSG funding is course fee subsidies. These directly reduce the amount you pay for SSG-funded training courses.

Subsidy Rates

How It Works

1. Company or individual selects an SSG-funded course
2. The subsidy is automatically deducted from the course fee at the point of enrolment
3. You only pay the nett fee (after subsidy)
4. No separate application or claim is needed for course fee subsidies

Example: A 5-day AI training course costs $3,500. For a Singapore Citizen aged 45:

• SSG subsidy (90%): -$3,150
• You pay: $350
• Use SkillsFuture Credit: -$350
• Net cost: $0

Absentee Payroll (AP) Funding

When employees attend SSG-funded training during working hours, employers can claim Absentee Payroll funding to offset salary costs:

• Standard rate: $4.50 per hour per trainee
• Annual cap: $100,000 per company per calendar year
• Enhanced rate for SMEs: Higher rates available under ETSS

How to Claim Absentee Payroll

1. Ensure the course is SSG-funded and the employee is a Singapore Citizen or PR
2. Submit the AP claim through the TP Gateway (for training providers) or Enterprise Portal (for employers) within 6 months of course completion
3. SSG processes the claim and credits your company account

AP Calculation Example

10 employees attend a 5-day (40-hour) AI training programme:

• AP claim: 10 employees x 40 hours x $4.50 = $1,800
• This is on top of the course fee subsidy

SkillsFuture Enterprise Credit (SFEC)

SFEC is a one-off $10,000 credit for eligible companies to cover out-of-pocket training expenses. It can be used on top of existing course fee subsidies.

SFEC Eligibility

• Company has at least 3 Singapore Citizens or PRs on payroll
• Each qualifying employee earns at least $750/month in gross wages
• Company has been notified of eligibility by SSG

What SFEC Covers

• Up to 90% of out-of-pocket expenses for training
• Applies after course fee subsidies are deducted
• Can be used across multiple courses and employees
• Valid for a specified period (typically 1-2 years from notification)

How to Use SFEC

1. Log in to the SSG Business Portal
2. Check your SFEC eligibility and balance
3. Select eligible courses and enrol employees
4. At the payment stage, indicate you wish to use SFEC
5. The credit is applied automatically to offset your out-of-pocket costs

Enhanced Training Support for SMEs (ETSS)

SMEs receive additional training support through ETSS. To qualify as an SME under SSG criteria:

• Annual sales turnover of not more than $100 million, OR
• Employment size of not more than 200 workers

ETSS Benefits

Key advantage: Under ETSS, all employees (regardless of age) receive the enhanced 90% subsidy. Non-SMEs need employees to be 40+ for the 90% rate.

SSG Funding for AI and Digital Skills

SSG has identified AI, data analytics, and digital skills as priority areas. This means:

1. More Approved Courses

The SSG course directory has significantly expanded its AI and digital skills offerings. Categories include:

• Artificial Intelligence and Machine Learning
• Data Analytics and Business Intelligence
• Cybersecurity
• Cloud Computing
• Digital Marketing
• Automation and Process Improvement

2. Priority Subsidies

Selected AI courses may qualify for enhanced subsidies beyond the standard rates, particularly under national initiatives like the National AI Strategy 2.0.

3. Industry Transformation Maps

SSG works with industry bodies to identify sector-specific skills needs. AI features prominently in transformation maps for financial services, healthcare, manufacturing, and professional services.

How to Find SSG-Funded Courses

MySkillsFuture Portal (for Individuals)

1. Visit myskillsfuture.gov.sg
2. Use the course search function
3. Filter by "SSG-funded" to see only subsidised courses
4. Check the "Nett Fee" column to see your cost after subsidies

Enterprise Portal (for Employers)

1. Visit enterprisejobskills.gov.sg
2. Log in with CorpPass
3. Browse training programmes by industry or skill area
4. Check your SFEC balance and AP claim history

SSG Funding vs SkillsFuture Credit: What Is the Difference?

This is one of the most common points of confusion:

They work together: SSG course fee funding reduces the course fee by 70-90%, then SkillsFuture Credit covers the remaining 10-30%. In many cases, the total cost after both is $0.

SSG Grant Application Process for Employers

For Course Fee Subsidies

No application needed — subsidies are automatically applied when you enrol employees in SSG-funded courses through an approved training provider.

For Absentee Payroll

1. Ensure employees are enrolled in SSG-funded courses during working hours
2. Complete the AP claim form after training
3. Submit through the TP Gateway or Enterprise Portal within 6 months
4. SSG processes and reimburses within 4-6 weeks

For SFEC

1. Check eligibility on the Enterprise Portal
2. Accept the SFEC offer when notified
3. Use the credit when paying for eligible training
4. Track balance and usage through the portal

How Pertama Partners Works with SSG Funding

Pertama Partners is an SSG-approved training organisation. When you train with us:

• All course fees show the nett price after SSG subsidies
• We handle Absentee Payroll documentation for your HR team
• We help you apply SFEC credits to further reduce costs
• Our AI and digital skills courses are specifically designed for Singapore's priority skills areas