What Employers Need to Know About Absentee Payroll Funding

Absentee payroll funding helps businesses manage salary costs while employees undergo training. It reduces the financial strain of workforce development, allowing companies to invest in employee growth without disrupting daily operations.

For employers looking to boost productivity, this funding makes training more affordable. It supports workforce upskilling, ensures compliance with industry standards, and improves employee retention. With funding available for in-person, virtual, and hybrid training, businesses have more flexibility in developing their teams.

This article breaks down everything you need to know—who qualifies, how to apply, and how to make the most of this financial support.

Related Article: The Future Impact of AI: Preparing Your Workforce for What’s Next

Who Can Apply for Absentee Payroll Funding?

Employers

Businesses registered and operating in Singapore can apply for absentee payroll funding. This includes startups, SMEs, and large corporations looking to upskill their workforce while minimising downtime.

Employees

Eligible employees must be:

• Enrolled in an approved training program.
• Employed in a registered Singaporean company.

Companies sending employees for professional development can claim funding to cover part of their wages for the duration of the training.

Related Article: 5 Ways to Maximise Singapore’s Course Subsidies For Your Career Growth

What are the Key Benefits of Absentee Payroll Funding for Businesses?

Financial Savings

Absentee payroll funding offsets a portion of employees’ salaries, making training initiatives more cost-effective for businesses. This reduces overhead while supporting a culture of learning.

Workforce Development & Competitive Advantage

Investing in upskilling keeps businesses ahead of industry trends. With employees gaining critical skills in digital transformation, AI, and cybersecurity, companies remain competitive in fast-evolving markets.

Enhanced Employee Retention & Talent Attraction

Companies that actively invest in employee growth are more likely to retain top talent. Employees value career development, and businesses that offer ongoing training become more attractive to high-caliber professionals.

Compliance & Industry Standards

Many sectors require businesses to meet regulatory training requirements. Absentee payroll funding ensures employees comply with industry standards without impacting business cash flow.

How Long Does It Take to Process an Absentee Payroll Funding Application?

SkillsFuture states Absentee Payroll (AP) declarations submitted via the Enterprise Portal for Jobs and Skills (EPJS) are typically processed within two and a half weeks.

Learn more about absentee payroll funding for corporate teams by connecting with our admissions team at Vertical Institute.  🚀

How to Apply for Absentee Payroll Funding at Vertical Institute

Follow these steps to get support for your employees’ training:

1. Verify Eligibility

Ensure your business and training program qualify for absentee payroll funding.

2. Select an Approved Course

Choose a course that aligns with business needs. Visit the Vertical Institute website to check the available SkillsFuture-approved courses. Explore our diverse range of AI-integrated programmes, including Generative AI, Data Science, Digital Marketing, Data Analytics, Cybersecurity, UI/UX Design, Advanced Data Analytics and Blockchain.

Find out how much funding your business can save! Try our subsidy calculator for free!  🚀

3. Submit Documentation

Gather company registration details, employee information, and course materials before applying.

4. Await Approval

Once submitted, applications are reviewed for eligibility and completeness.

5. Employee Training Attendance

Employees must attend the entire course to qualify for reimbursement.

6. Claim Reimbursement

After training, submit proof of attendance and required documentation to receive funding.

Can Absentee Payroll Funding Be Combined With Other Subsidies?

Yes, Absentee Payroll Funding can be combined with other subsidies to further reduce training costs for employers. Businesses can maximise savings by leveraging multiple funding schemes, including the SkillsFuture Enterprise Credit (SFEC) and SSG subsidies.

At Vertical Institute, eligible SMEs can receive additional subsidies through various funding schemes:

• SkillsFuture Enterprise Credit (SFEC) – Covers up to 90% of remaining fees after other subsidies.

• SSG Subsidies – Covers 50% to 70% of course fees, depending on eligibility.

• Enterprise Innovation Scheme – Provides either:
  
  – 400% tax deduction on training expenses, or
  – 20% cash payout based on nett fees.

By combining funding sources, businesses can significantly reduce out-of-pocket expenses, making workforce upskilling more affordable and accessible.

Related Article: SkillsFuture Credit for PR: Are Permanent Residents Eligible?

More FAQs about Absentee Payroll Funding

Conclusion 

Absentee payroll funding presents a strategic opportunity for businesses to invest in their workforce without straining operational budgets. By leveraging this financial support, employers can enhance employee skills, boost retention, and gain a competitive edge in their industry.

With talent development becoming a priority in today’s evolving job market, now is the time to integrate absentee payroll funding into your company’s growth strategy. Explore approved training programs and secure funding to future-proof your workforce today.