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Earned Income Relief

Earned Income Relief is for individuals who are gainfully employed or carrying on a trade, business, profession or vocation.

Qualifying for Earned Income Relief

You will receive this relief if you have taxable income from any of the following sources in the previous year:

  • Employment;
  • Pension; or
  • Trade, business, profession or vocation.
Amount of Earned Income Relief

The amount of relief (shown in the table below) is based on your age and taxable earned income in the previous year.

 Your age as of 31 Dec of the previous year
*Maximum amount claimable
Below 55
SGD 1,000
55 to 59 
SGD 6,000
60 and above 
SGD 8,000

*If the amount of taxable earned income is lower than the maximum amount claimable, the relief will be capped at the amount of taxable earned income.

For example, if you are 55 years old as at 31 Dec 2019 and have taxable earned income of SGD 5,000 in 2019, you will get Earned Income Relief of SGD 5,000 (instead of SGD6,000) for the Year of Assessment 2020.

Earned Income Relief for Handicapped Persons

A higher Earned Income Relief (shown in the table below) will be given to those with permanent physical or mental disability that severely affects their ability to work.

 Your age as of 31 Dec of the previous year
*Maximum amount claimable
Below 55
SGD 4,000
55 to 59 
SGD 10,000
60 and above 
SGD 12,000

*If the amount of taxable earned income is lower than the maximum amount claimable, the relief will be restricted to the amount of taxable earned income.

Claiming Earned Income Relief

You do not need to claim this relief in your Income Tax Return as it will be automatically granted to you based on your eligibility.

First-Time Claim for Handicapped Earned Income Relief
Those claiming Handicapped Earned Income Relief for the first-time must complete and submit the Handicapped-Related Tax Relief form by email.
You also need to complete your tax return as follows:
  • If you are e-Filing your tax return: Enter details of your handicap under Section “4. Deductions, Reliefs and Parenthood Tax Rebate” > “Earned Income Relief”.
  • If you are submitting a paper form: Enter details of your handicap in Appendix 2 of the Tax Form.