The Ministry of Manpower's Labour Market Report for the second quarter of 2026, released on 21 September, recorded 11,400 new jobs alongside fewer vacancies and 4,620 retrenchments. The report also pointed employers to the SkillsFuture Workforce Development Grant (Job Redesign+), the Career Conversion Programmes and other reskilling support.
ATHR's summary of the Q2 labour market figures covers the data, and this follow-up looks at the funding that sits behind those recommendations.
Key Takeaways
Consider a 15-person trading company that has automated its order processing. Two coordinators now spend less time on data entry and more on supplier management, and the owner needs to retrain them rather than replace them. The funding available for that situation depends on the project, the workforce and the scheme, since Singapore does not offer a general restructuring payout.
Three schemes are most relevant: the SkillsFuture Enterprise Credit (SFEC), the Workforce Development Grant (Job Redesign+), and the Career Conversion Programmes (CCP). Dates matter, because the current SFEC expires on 30 November 2026 and a redesigned version starts on 1 December.
SFEC reduces a company's out-of-pocket costs on supported programmes, WDG(JR+) funds a job redesign project, and CCP supports reskilling workers into new roles. The right route depends on whether the business needs project funding, cost offsets or salary support during role conversion.
The current SFEC gives eligible employers up to S$10,000 per entity, covering up to 90% of qualifying out-of-pocket expenses once other government support has been applied, according to Enterprise Singapore's SFEC FAQ. Enterprise Transformation programmes are capped at S$7,000, and the remaining S$3,000 can only go to Workforce Transformation programmes.
Eligibility was based on earlier qualifying periods, which required at least three Singapore Citizens or Permanent Residents on payroll. Eligible employers were notified directly, so the credit is not an open application for every new SME.
The current SFEC expires on 30 November 2026. The same FAQ states that final claims for approved programmes, or for completed training courses, must be submitted by that date, and unused credit is forfeited.
Enrolling in a course does not preserve the credit, since claims apply to completed courses. For SFEC-eligible courses, reimbursement for eligible enrolments is usually paid to the corporate PayNow account after completion, while other programmes require final claims to the relevant agency. A course that ends in December may fall outside the current SFEC.
Employers often find unused credit in the final weeks, only to discover that the course dates or agency claim window no longer fit. Checking the balance and each programme's schedule now leaves time to adjust.
From 1 December 2026, the SFEC (Enhanced) will operate like a digital wallet, according to the Enterprise and Workforce Transformation Package FAQ. Companies can offset out-of-pocket costs upfront instead of paying first and claiming later, which addresses cash flow concerns. They will also be able to check balances and decide where to spend the credit.
Based on the OurWorkforce programme page, eligible employers must meet these conditions during the qualifying period of 1 January 2025 to 31 December 2025:
Eligible employers are notified automatically and do not apply. Before accessing the credit, they complete a short workforce questionnaire, with further details to be shared later. At launch, the credit can offset out-of-pocket costs for WDG(JR+), SWDA-funded employer-sponsored courses on the SkillsFuture for Business Course Directory, and NACE mentorship support projects. More programmes will be added progressively.
WDG(JR+) launched in March 2026 and replaced the earlier Productivity Solutions Grant support for job redesign. Funding is up to 70% for SMEs and 50% for non-SMEs, capped at S$150,000 per enterprise, compared with S$30,000 under the previous scheme. The enterprise must be registered and operating in Singapore with at least three local employees, as set out in the MOM factsheet on the Enterprise Workforce Transformation Package.
The grant covers three components, each with its own sub-cap:
Workforce Tech Solutions must be combined with at least one of the other components, so software cannot be funded alone. Companies that used the earlier scheme can apply again if the project scope and redesigned job roles are different. The FAQ directs employers to SWDA's website for current application details, so project timing and approval should be confirmed before any spending is committed. Broader business projects may suit the Enterprise Development Grant instead.
Routine training improves skills within an existing role, while a Career Conversion Programme moves a worker into a different role under a defined training arrangement.
According to WSG's guidance for employers, CCP operates in three modes: Place-and-Train for new hires, Attach-and-Train for host employers, and Job Redesign Reskilling for existing staff moving into growth roles. For new hires, the role must be substantially different from the candidate's previous role. Salary support can reach 90%, with higher funding for long-term unemployed and mature jobseekers aged 40 and above, though the actual rate and duration depend on the specific programme.
Employers must be registered in Singapore and offer a permanent position or a contract of at least one year at market-rate pay. For employers considering mid-career hiring, the earlier Career Conversion Programme guide explains the hiring-cost side in more detail.
These schemes fund job redesign, reskilling and the capability to run workforce change. Corporate restructuring and retrenchment are separate matters, and none of the schemes above pays for redundancy payouts, general payroll or a standalone software purchase.
A company that retrenches staff has statutory notification duties, while one that redesigns roles may qualify for project funding. Employers with at least 10 employees must notify MOM within five working days after notifying employees of retrenchment, under MOM's mandatory retrenchment notification rules.
A clear plan makes any application easier to assess and any claim easier to evidence. The sequence below suits most SMEs.
Step 1: Define what is changing. List the tasks that are shrinking, growing or automated, and the roles affected.
Step 2: Map skills gaps and outcomes. Record what each employee needs to learn and the measurable result expected.
Step 3: Prepare the records. Gather employee and CPF records, the project scope, quotes, the budget and the cash-flow timing.
Step 4: Confirm rules before committing. Check agency approval, cost eligibility, GST treatment (the FAQ notes GST is not supportable) and any combination rules before signing contracts or paying deposits.
The following is a hypothetical illustration, based on the calculation method in the official FAQ, and does not predict approval.
An SME automates order entry and wants to redesign two coordinator roles into supplier management roles. The owner engages a pre-approved consultant for a job redesign project costing S$20,000 and applies to WDG(JR+). The decision path runs in order:
The percentages apply in sequence to the remaining cost and are not added together. Each step depends on approval, eligibility and available credit, and GST is excluded.
No. SFEC supports employers with workforce and enterprise transformation costs, while personal SkillsFuture Credit is for individual Singaporeans to pay for courses.
Current SFEC eligibility was based on past qualifying periods, and eligible employers were notified. It is not an open application, so a newly incorporated company should confirm its position with Enterprise Singapore.
In some cases, yes. The official FAQ shows SFEC offsetting out-of-pocket costs after WDG(JR+) support. Combination rules depend on the scheme and programme, so confirm them with the agency before committing spend.
The current SFEC expires on 30 November, and the redesigned SFEC begins on 1 December as a digital wallet that offsets costs upfront. Eligible companies are notified automatically and complete a short workforce questionnaire.
The funding route that suits a business depends on the project: SFEC reduces what is left to pay, WDG(JR+) funds redesign work, and CCP supports role conversion. The immediate deadline is 30 November, because unused current SFEC credit is forfeited and a missed claim window cannot be recovered. Employers who plan the workforce change first and match schemes second are better placed to document costs and outcomes.
Applying for workforce support involves accurate payroll and CPF records, cost planning and timing decisions that sit alongside normal business operations.
ATHR supports Singapore companies with payroll management, accounting and tax services and business advisory for workforce cost planning. Employers weighing the payroll side of reskilling or hiring can also read the guide to local versus foreign payroll costs.
👉 Ready to plan your workforce costs? Book a free consultation with ATHR today →
The ATHR Content Team is a group of professional writers from Singapore and the Philippines, committed to delivering informative, practical, and engaging content for business owners across Southeast Asia.
