SME Training Guide
SFEC Eligibility Criteria in Singapore 2026
Most SME owners assume SFEC eligibility is complicated. It is not. Three rules decide whether S$10,000 lands in your Business Grants Portal account.
This guide walks through each rule, shows real examples of companies that pass and fail, and gives you a checklist to verify your status in ten minutes.
Eligibility Overview
You do not apply for SFEC. Enterprise Singapore runs the eligibility check automatically based on your past CPF and SDL records.
Qualifying companies get notified by email to their registered CorpPass administrator. The credit then appears as a S$10,000 balance when you log in to the Business Grants Portal.
Enterprise Singapore assessed eligibility across five qualifying periods since Budget 2020. If you qualified in any of them, the credit is yours. If you missed every window, you wait for the redesigned SFEC under the Enterprise Workforce Transformation Package in the second half of 2026.
The three core eligibility rules are:
- Local employee headcount
- Skills Development Levy contributions
- Active ACRA status with no SDL defaults
Each rule has specific thresholds. Missing one disqualifies you.
CPF Contribution Rules
Your company must have employed at least three Singapore Citizens or Permanent Residents each month across the qualifying period. These employees must draw a salary with CPF contributions in their name.
- Full-time local staff on regular payroll
- Part-time local staff receiving CPF
- Business owners or directors paying themselves a CPF-contributing salary
- New hires brought on during the qualifying period
- Foreign employees on work passes
- Contractors paid without CPF
- Interns without CPF contributions
- Directors receiving only director fees without CPF
The "every month" clause is strict. One month below three local CPF-contributing staff and you fail.
You do not need to maintain three local hires forever. The test only applies during the qualifying period. Once your S$10,000 appears in the portal, headcount changes do not revoke it.
For the upcoming EWTP redesign in the second half of 2026, eligibility simplifies. Your company needs just three local employees on CPF at the time the credit is issued. No minimum SDL. No historical test.
Business Requirements
Beyond headcount, your company must have contributed at least S$750 in Skills Development Levy across the qualifying period.
SDL is a mandatory employer contribution under the Skills Development Levy Act. You pay 0.25% of each employee's monthly wage, with a S$2 minimum and S$11.25 maximum per worker. Foreign workers on Work Permits also trigger SDL.
S$750 is a low bar. A company with three local staff each earning S$3,000 monthly hits roughly S$27 in SDL per month, or S$324 per year. Most SMEs cross S$750 easily with foreign workers in the mix.
The SDL rule serves a second purpose. If your company defaulted on SDL payments during the qualifying period, you lose eligibility even if you crossed the S$750 threshold. Settle any outstanding SDL before assessment closes.
Two more requirements round out the checklist:
Your company must hold active ACRA status throughout the qualifying period. Struck-off or dormant companies fail this check.
Your UEN must not appear on any government debarment list. Companies under investigation for fraud or grant misuse get excluded.
Run a quick check with your accountant: pull your CPF and SDL records for the past assessment year, confirm active ACRA status, and verify no compliance flags. A clean record clears all four eligibility rules in one pass.
Real Examples
Theory only goes so far. Here are three scenarios from real Singapore SMEs that show how the eligibility rules play out in practice.
The marketing agency that qualified
A boutique agency with four Singaporean staff ran payroll through the entire Jan 2021 to Dec 2021 qualifying period. Each staff member earned between S$3,500 and S$7,000 monthly.
- Annual SDL landed at roughly S$420 from local staff alone
- Two foreign designers added mid-year pushed total SDL past S$850
- ACRA status stayed active throughout the qualifying period
- Local headcount held steady at four every single month
The F&B business that missed
A small restaurant group employed two local managers and four foreign kitchen staff during the Budget 2020 qualifying periods. Their SDL contributions looked healthy on paper.
- Foreign worker SDL contributions pushed total SDL above S$1,200
- Local headcount stayed at two for the first ten months
- One local manager resigned in month four, dropping headcount to one
- Failed the three-local-employee test on the monthly check
The consultancy that nearly lost it
A three-person local consultancy crossed both headcount and SDL thresholds without issue. Then a bookkeeping error caused one month of SDL to go unpaid.
- Enterprise Singapore flagged the default during assessment
- The firm disputed the error and provided bank records
- Settled the outstanding S$52 within the review window
- Qualified on appeal after providing full payment proof
The lesson: small administrative mistakes can cost you S$10,000. Keep your CPF, SDL, and ACRA filings clean. Run a quarterly check with your accountant before the next assessment window opens.
Check Your SDL Status on IRASEligibility Checklist
Run through this list right now to confirm whether your S$10,000 credit is sitting in the portal waiting for you.
7-Step Self-Audit
- Log in to the Business Grants Portal with CorpPass
- Check for a S$10,000 SFEC balance
- Review your email inbox for past notifications from Enterprise Singapore (subject line usually mentions "SFEC")
- Pull your past CPF contribution records for qualifying years
- Verify SDL payments are current with IRAS
- Confirm active ACRA status
- Check that your CorpPass administrator is still the right person
If your balance shows S$10,000
You qualify. Map out your training and transformation plans before 30 November 2026.
If your balance is zero or no SFEC tab shows
One of three things has happened: you missed a past qualifying window, your SDL contributions fell short, or your ACRA status lapsed during the test period.
If you missed the current SFEC
Prepare for the EWTP redesign launching 1 December 2026. Maintain three local hires on CPF, keep SDL current, and keep ACRA active. The new S$10,000 digital wallet credit issues automatically when you qualify.
If you qualify, training must be completed and claims submitted by this date. Unused balance does not roll over to the EWTP scheme.
Recommended AI Trainings If You are Eligible
See real SFEC-eligible courses from our partner Vertical Institute. Each programme is customised to your team's goals, systems, and use cases, with flexible delivery across on-site, virtual, or hybrid formats.
Generative AI Course
Hands-on training on ChatGPT, Gemini, Copilot, Claude, Gamma, and Suno for daily workplace productivity. Build strong prompting skills and automate repetitive work tasks.
- Learn ChatGPT, Gemini, Copilot, Claude, Gamma, and Suno for daily workplace productivity tasks
- Build strong prompting skills and automate repetitive work tasks without any coding required
- Training is fully customised based on your team's goals, roles, and business use cases
- Flexible delivery formats including on-site, virtual, or hybrid sessions based on your preferences
- Fees from S$643.50 after SSG, with potential surplus of up to S$957 after SFEC, EIS, AP and GST claims
AI Workflow Automation Course
Build AI agents and automate real business workflows using APIs and multi-model systems. Create production-ready automations that plug into your existing tools.
- Learn to build AI agents and automate workflows using APIs and multi-model AI systems
- Use tools like n8n, ChatGPT, Claude, and Gemini to create real business automation workflows
- Training is tailored to your processes, systems, and team capability levels for practical implementation
- Delivered flexibly across formats, timelines, and locations based on your operational requirements
- Fees from S$507 after SSG, with potential surplus of up to S$754 after SFEC, EIS, AP and GST claims
Both courses are SFEC-supportable and delivered by AI Training SG's partner Vertical Institute. Speak to the training provider directly to map the right course to your team's level and business goals.
Talk With The Training Provider Directly →Top 10 Practical Questions About SFEC, Answered
Beyond eligibility, these are the operational questions that trip up most SME owners when they actually start using their S$10,000 credit.
What is the S$7,000 enterprise cap and why does it exist?
Your S$10,000 SFEC splits into two envelopes. Up to S$7,000 can go toward enterprise transformation projects under schemes like PSG and EDG (consultancy, digital solutions, productivity tools). The full S$10,000 is available for workforce training under SSG-supported courses. If you use S$7,000 on an EDG project, you have S$3,000 left strictly for training. If you skip enterprise projects entirely, all S$10,000 can fund WSQ courses. The cap exists to ensure part of the credit always flows to people development.
Which programmes are actually SFEC-supportable?
SFEC only tops up approved base schemes. The main ones are the Productivity Solutions Grant (PSG) for pre-scoped digital and equipment solutions, the Enterprise Development Grant (EDG) for larger transformation projects, SkillsFuture Singapore (SSG) supported courses including WSQ programmes, the Career Conversion Programme (CCP) for mid-career hires, and Work-Study Programmes. If a course or consultancy is not funded by one of these base agencies, SFEC cannot reimburse it. Always confirm the base scheme before committing spend.
How does the 90% reimbursement cap actually work?
SFEC covers 90% of your out-of-pocket cost after the base grant, not 90% of the full invoice. Example: a S$5,000 PSG project funded at 50% leaves you paying S$2,500. SFEC reimburses 90% of that S$2,500, which is S$2,250. You still absorb S$250. The 10% co-payment is mandatory because the scheme wants employers to have genuine skin in the game. You cannot claim 100%, even if your SFEC balance allows it.
Does the S$10,000 include GST or is it exclusive?
SFEC reimburses the GST-exclusive amount. If your training invoice is S$10,000 plus 9% GST (S$10,900 total), SFEC only considers the S$10,000 portion for the 90% calculation. The GST component is your responsibility to pay, though GST-registered companies can typically claim it back as input tax through their regular IRAS filing. Factor this into your project budgeting so there are no surprises at claim submission.
Can I pay the vendor first and claim SFEC later?
For PSG and EDG projects, no. You must receive grant approval before signing contracts or making payment, otherwise the entire claim gets voided. For SSG training courses, the course fee is typically netted off at enrolment by the training provider, so you only pay the subsidised portion upfront. SFEC then reimburses 90% of what you paid after completion. The rule of thumb: never commit spend on enterprise projects before approval, and always confirm the claim workflow with your training provider before enrolling staff.
My CorpPass administrator left the company. How do I access my SFEC?
Log in to the CorpPass portal and assign a new administrator through your ACRA-registered authorised representative. Once the new admin is active, they can access the Business Grants Portal and see the SFEC balance. If no one remaining in the company has CorpPass admin rights, you will need to reset access through the CorpPass helpdesk with supporting ACRA documents. This process takes a few working days, so do not leave it until a claim deadline is approaching.
What happens to my SFEC if my company restructures or gets acquired?
SFEC stays tied to the original UEN. If you change your company name but keep the UEN, the credit remains intact. If you form a new entity with a new UEN through a merger, restructuring, or acquisition, the new UEN does not inherit the old credit and must qualify separately. Companies winding up or being struck off lose any unused balance. If an acquisition is planned, use the credit before the restructuring closes or you forfeit it.
Can I use SFEC for self-directed learning or online courses like Coursera?
Only if the course is delivered through an SSG-approved training provider under a WSQ-aligned or SSG-supported programme. Standalone Coursera, Udemy, or LinkedIn Learning subscriptions are not SFEC-supportable, even if the content is directly relevant to your business. Some local providers do package international content under SSG-approved wrappers. Check the MySkillsFuture course directory to confirm SFEC eligibility before enrolling your team.
Do I need pre-approval from Enterprise Singapore before spending SFEC?
You do not apply to Enterprise Singapore for SFEC itself, but you do need approval for the underlying base grant. For PSG, submit your application through the Business Grants Portal and wait for approval before purchasing. For EDG, scope the project with Enterprise Singapore and get the Letter of Offer before engaging the consultant. For SSG training, enrolment through an approved provider handles the approval automatically. Skipping base-grant approval is the single most common reason SFEC claims fail.
What exactly happens on 30 November 2026?
30 November 2026 is the final date to submit claims against the current SFEC. Any course completion, project sign-off, or claim submission after this date is rejected regardless of remaining balance. The deadline applies to claim submission, not project start, so projects must complete and be claimed by this cutoff. The redesigned SFEC under the Enterprise Workforce Transformation Package launches on 1 December 2026 as a separate S$10,000 digital wallet credit. There is no grace period and no extensions.
Next Steps
Confirmed eligibility? Read the claim process guide to start drawing down your credit. Still researching? The supported programmes breakdown shows exactly what you can spend SFEC on. For broader SME grant planning, compare SFEC with PSG and EDG in our grant comparison guide.
SFEC Subsidy Calculator
See exactly how much your S$10,000 SFEC credit cuts your real cost after stacking with PSG, EDG, or SSG funding.
SSG-supported WSQ courses qualify under the training envelope (full S$10,000 available).
Typical rates: SSG 50–70% (up to 90% for SMEs), PSG 50%, EDG 50% (up to 70% for select projects).
Default S$10,000. Enterprise projects (PSG/EDG) are capped at S$7,000 of SFEC use.