Absentee Payroll Funding in Singapore: A Simple Guide for Employers in 2025

Absentee Payroll Funding in Singapore - A Simple Guide for Employers in 2025

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Sending your team for training is one of the best ways to future-proof your business. But let’s be real—when employees are away from work, productivity drops, and costs can rise. That’s where Singapore’s Absentee Payroll (AP) funding comes in to support.

If you’ve never heard of AP funding or aren’t sure how it works, this guide is for you.

What Is Absentee Payroll Funding?

Absentee Payroll (AP) is a government grant provided by SkillsFuture Singapore (SSG). It helps employers recover part of the salary paid to employees while they’re attending approved training courses.

Think of it this way: your employee goes for training during work hours, and the government helps cover their salary for those hours. This means your business loses less money while upskilling your team.

Who Can Apply?

Wondering if your company qualifies for Absentee Payroll funding? Here are the basic eligibility criteria to keep in mind.

  • You are a registered business in Singapore.
  • Your employee is a Singapore Citizen or Permanent Resident.
  • The training course is approved and funded by SSG.
  • The employee is sponsored by the company (i.e., not attending on their own).

Important: You cannot claim AP if the training happens outside working hours or if the employee is not paid during training.

How Much Funding Can You Receive?

As of 2025, here’s what you can expect:

  • Standard Rate: $4.50/hour per employee
  • Enhanced Rate (for SMEs or selected courses): Up to $7.50/hour
  • Cap: Reimbursement is usually limited to 80% of the employee’s basic hourly salary

These claims are on top of course fee subsidies, which means you can save on both the training cost and lost productivity.

How to Apply for AP Funding

Applying for AP is easier than you think. Here are the steps:

  • Check course eligibility: Make sure the training is approved by SSG.
  • Register your business on the Enterprise Portal for Jobs & Skills (EPJS).
  • Enroll your employee in the course and ensure they attend during paid working hours.
  • After the training is done, submit your claim via SkillsConnect or the Training Partners Gateway.
  • Keep all records, including attendance and payroll info, in case of audit.

Tip: Use a digital HR system to track employee hours and attendance—it’ll make the process faster and reduce errors.

Why It Matters for HR Teams in Singapore

Training is no longer a “nice-to-have.” With Singapore pushing forward with digital transformation, sustainability, and new workforce policies, companies need skilled people more than ever.

But training costs time and money.

That’s why Absentee Payroll is a powerful tool for HR professionals:

  • It reduces the financial burden of training.
  • It encourages more upskilling within your team.
  • It supports Singapore’s national SkillsFuture movement.
  • It aligns with industry goals under Industry Transformation Maps (ITMs) and the Progressive Wage Model (PWM).

Make Training Worth It—with the Right Support

Absentee Payroll makes training a smart business move, not a risky expense. Whether you’re running a small team or managing talent in a growing company, AP funding gives you the flexibility to invest in your people without breaking the budget.

It’s also a great way to show your team that you’re serious about their growth—which, in turn, improves engagement and retention.

Bonus Tip: Use Technology to Make It Easier

Managing training records, tracking attendance, and claiming AP can get messy—especially if you’re doing it manually.

With HR tech solutions like HRMLabs, you can:

  • Monitor employee training and attendance in real time
  • Keep accurate records for claims
  • Automate payroll adjustments
  • Stay compliant with MOM and SSG requirements

A smart HR system doesn’t just save time—it helps you get the most out of schemes like Absentee Payroll funding. Need more information about HRMLabs? Leave us a message.

Final Thought

Training is essential, but it doesn’t have to be expensive. With Absentee Payroll funding, Singapore businesses can build stronger teams without sacrificing productivity or profits.

Start planning your team’s upskilling journey today—and make the most of the support that’s already available.

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