In this guide
What Is Absentee Payroll?
Absentee Payroll (AP) is a government funding scheme that reimburses employers for the wages they continue paying to employees while those employees are away on training. It is administered by SkillsFuture Singapore (SSG) and applies to SSG-funded courses.
Think of it this way: when you send staff for a three-day AI course, you are still paying their salary even though they are not doing their regular work. Absentee Payroll partially offsets that wage cost. It does not reduce your course fee — that is handled separately by SSG subsidies and SFEC. AP is additional money that goes back into your pocket for the time your employees spent in the classroom instead of at their desks.
The rate is $4.50 per hour per trainee, and the cap is $100,000 per organisation per calendar year. For most companies sending staff to AI courses, the per-trainee amounts are modest — but they add up when you are training a team, and the funding stacks on top of everything else.
How Much Can You Claim?
The Absentee Payroll rate is fixed and straightforward. Here is a breakdown for different training scenarios.
| Team size | Training hours | AP per trainee | Total AP reimbursement |
|---|---|---|---|
| 1 employee | 21 hours | $94.50 | $94.50 |
| 3 employees | 21 hours | $94.50 | $283.50 |
| 5 employees | 21 hours | $94.50 | $472.50 |
| 10 employees | 21 hours | $94.50 | $945.00 |
| 20 employees | 21 hours | $94.50 | $1,890.00 |
| 50 employees | 21 hours | $94.50 | $4,725.00 |
The formula is: Training hours × $4.50 × Number of trainees. The organisation-wide cap is $100,000 per calendar year, so you would need to train well over 1,000 employees before hitting the limit.
Absentee Payroll does not reduce your course fee. SSG subsidies and SFEC handle that. AP reimburses wages — the salary you are paying your employees while they attend training. It is entirely separate funding.
Eligibility Requirements
Absentee Payroll eligibility is tied to the employee, the employer, and the course. All three conditions must be met.
| Requirement | Details |
|---|---|
| Employee status | Must be on the company's payroll during the training period. This means the employee is receiving a salary from your organisation while attending the course. |
| Citizenship / residency | Employee must be a Singapore Citizen, Permanent Resident, or Long-Term Visit Pass Plus (LTVP+) holder. |
| Course type | The course must be SSG-funded. Private courses, overseas training, and non-accredited workshops do not qualify. |
| Employer contribution | Your company must have made Skills Development Levy (SDL) contributions for the employee. |
| Annual cap | $100,000 per organisation per calendar year across all employees and courses. |
Contractors and freelancers do not qualify. Employees on unpaid leave during the training period are also excluded — the point of AP is that you are paying their salary while they train, so there must be an actual wage cost to reimburse.
How It Works (Step by Step)
Absentee Payroll is one of the simplest employer subsidies to claim in Singapore. Unlike SFEC, which requires you to submit a separate claim through the SFBX portal, AP is handled automatically as part of the SSG-funded course enrolment process.
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Enrol your employees in an SSG-funded course Register your staff with a training provider that delivers SSG-funded programmes — such as Generative AI Training or AI Workflow Automation Training through Vertical Institute. AP eligibility is flagged automatically at the point of enrolment.
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Confirm employees are on your payroll Your staff must be on your company's payroll during the training period. They should be receiving their regular salary. No special forms are needed for this — it is verified through existing CPF and SDL records.
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Employees attend the training Your staff complete the programme as scheduled. The training provider records attendance. AP is calculated based on actual training hours completed at $4.50 per hour per trainee.
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AP is processed after course completion Once the course is completed and attendance is confirmed by the training provider, SSG processes the AP reimbursement. There is no separate application form for you to submit. The provider handles the AP paperwork as part of the standard SSG course completion workflow.
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Receive your reimbursement The AP amount is credited to your company. This is separate from any course fee subsidies. AP reimburses wage costs; SSG subsidies and SFEC handle course fees. Both can be claimed for the same training event.
Unlike many government grants, Absentee Payroll does not require a standalone application. It is built into the SSG-funded course enrolment process. When your employees attend an eligible course, the AP claim is handled automatically between the training provider and SSG.
AP Calculation for Vertical Institute Training Programmes
Here is the exact Absentee Payroll reimbursement for the two corporate AI training programmes delivered by Vertical Institute, across different team sizes.
Generative AI Training (21 hours)
| Team size | Hours | Rate | AP per trainee | Total AP |
|---|---|---|---|---|
| 1 staff | 21 hrs | $4.50/hr | $94.50 | $94.50 |
| 3 staff | 21 hrs | $4.50/hr | $94.50 | $283.50 |
| 5 staff | 21 hrs | $4.50/hr | $94.50 | $472.50 |
| 10 staff | 21 hrs | $4.50/hr | $94.50 | $945.00 |
| 20 staff | 21 hrs | $4.50/hr | $94.50 | $1,890.00 |
AI Workflow Automation Training (17 hours)
| Team size | Hours | Rate | AP per trainee | Total AP |
|---|---|---|---|---|
| 1 staff | 17 hrs | $4.50/hr | $76.50 | $76.50 |
| 3 staff | 17 hrs | $4.50/hr | $76.50 | $229.50 |
| 5 staff | 17 hrs | $4.50/hr | $76.50 | $382.50 |
| 10 staff | 17 hrs | $4.50/hr | $76.50 | $765.00 |
| 20 staff | 17 hrs | $4.50/hr | $76.50 | $1,530.00 |
If your company sends staff to both programmes, the AP claims add up. For example, 10 staff completing both Level 1 (GenAI) and Level 2 (Workflow Automation) would generate a total AP reimbursement of $945 + $765 = $1,710.
Stacking AP with SFEC and Other Schemes
Absentee Payroll is designed to work alongside other employer subsidies. Because it reimburses wages rather than course fees, it draws from a separate funding pool and does not reduce your eligibility for any other scheme.
| Scheme | What it covers | Stacks with AP? |
|---|---|---|
| SSG Baseline Subsidy | Covers 50%–90% of the course fee (applied first) | Yes — AP reimburses wages, SSG covers course fees |
| SFEC | Up to $10,000 per company, offsets up to 90% of out-of-pocket course costs | Yes — AP and SFEC serve different purposes |
| Enterprise Innovation Scheme | 400% tax deduction or 20% cash payout on qualifying training expenses | Yes — EIS is a tax-level benefit, AP is a direct reimbursement |
| SkillsFuture Credit | Individual credit for the employee's personal training costs | Yes — SFC is for individuals, AP is for employers |
The key principle: SSG subsidies reduce the course fee. SFEC offsets your remaining out-of-pocket course cost. Absentee Payroll reimburses the wages you paid while your employees were in training. Each has its own pool and its own calculation. Claiming one does not reduce another.
Worked Example: 5 Staff on Generative AI Training
Here is a complete breakdown showing how SSG subsidy, SFEC, and Absentee Payroll work together for a team of five employees attending the Generative AI Training programme (21 hours, $1,650 per person).
Course fee calculation (per person):
Full course fee: $1,650
SSG subsidy (70% for non-SME): −$1,155
Employer out-of-pocket per trainee: $495
For 5 employees:
Total out-of-pocket (5 × $495): $2,475
SFEC offset (90% of $2,475): −$2,227.50
Employer pays for course fees: $247.50
Absentee Payroll (separate from course fees):
AP per trainee (21 hrs × $4.50): $94.50
Total AP for 5 employees: $472.50
Net position:
Course fees paid: $247.50
AP reimbursement received: $472.50
Net cost after AP: −$225.00 (AP exceeds the course fee cost)
In this scenario, the Absentee Payroll reimbursement alone is larger than the remaining course fee — meaning the training effectively costs the employer nothing out of pocket after all subsidies and AP are applied. The AP amount compensates for the wage cost during training hours.
For SMEs receiving enhanced subsidies (up to 90% SSG baseline), the out-of-pocket course fee is even lower, making the combined offset even more favourable.
Frequently Asked Questions
Absentee Payroll funding is $4.50 per hour per trainee. The cap is $100,000 per organisation per calendar year. For example, if you send one employee to a 21-hour AI course, your AP claim is 21 × $4.50 = $94.50. For 10 employees on the same course, you would receive $945 in total.
No. Absentee Payroll is applied automatically when you enrol employees in SSG-funded courses. There is no separate application form. The training provider and SSG handle the AP processing as part of the standard course enrolment and completion workflow.
Yes. Absentee Payroll and SFEC serve different purposes and can be claimed together. SFEC offsets your course fee costs. Absentee Payroll reimburses your wage costs while employees are away at training. They draw from separate funding pools and do not overlap.
No. Absentee Payroll does not reduce your course fee. It reimburses the wages you continue paying to your employees while they attend training instead of working. Course fees are covered separately by SSG subsidies and SFEC. AP is additional funding on top of course fee offsets.
Your company is eligible if the employee is on your payroll during the training period and the course is SSG-funded. The employee must be a Singapore Citizen, Permanent Resident, or LTVP+ holder. Your company must have made Skills Development Levy contributions. Contractors and freelancers are not eligible.
Yes. The cap is $100,000 per organisation per calendar year. At $4.50 per hour, this allows for a very large volume of training before the cap is reached. Most SMEs sending staff for AI courses will not come close to this limit.
Yes, as long as the employee is on your company's payroll and the course is SSG-funded. Part-time employees who meet the citizenship or residency requirements and are receiving wages from your company during the training period are eligible for Absentee Payroll.
For the Generative AI Training programme (21 hours), AP is 21 × $4.50 = $94.50 per trainee. For the AI Workflow Automation Training programme (17 hours), AP is 17 × $4.50 = $76.50 per trainee. If you send 5 staff to GenAI training, your total AP reimbursement is 5 × $94.50 = $472.50.
Find SFEC and AP-eligible AI training
Vertical Institute delivers WSQ-certified AI training for corporate teams in Singapore. Both programmes qualify for SFEC, Absentee Payroll, and SSG subsidies. Get a quote and they will calculate your total funding.