PSG and SFEC Grant has been around for a few years helping SMEs quietly. Have you benefitted from the combine effect of both grants?
Most of us knows PSG (Productivity Solutions Grant) and many of our customers has adopted Moneyworks Accounting Solutions under PSG enjoying from claiming 80%, down to 70% and now currently at 50% of the qualifying cost. However, we only know one portion without the other! Now let’s dive into SFEC (Skillsfuture Enterprise Credit).
The SkillsFuture Enterprise Credit encourages employers to invest in enterprise transformation and the capabilities of their employees.
About this programme
- Receive one-off credit of S$10,000
- Supports up to 90% of out-of-pocket expenses
- This is on top of support from existing schemes.
Employers must meet the following conditions over the qualifying period:
- Have employed at least three Singapore Citizens or Permanent Residents* every month over the qualifying period; and
- Have not been previously qualified for SFEC; and
- Are not in default of their SDL contributions during the qualifying period and do not have an inactive ACRA status during the qualification process.
Qualifying Periods: 1 January 2021 – 31 December 2021
*Refers to all Singaporean or Singapore PR employees drawing a salary and with CPF contribution.
Read up more about SkillsFuture Enterprise Credit here: https://www.enterprisesg.gov.sg/financial-support/skillsfuture-enterprise-credit
The faster way to find out if you are eligible or your Skillsfuture Enterprise Credit balance is to login to https://www.businessgrants.gov.sg/
So how does PSG and SFEC work to your company benefit? Here is an example of company adopting PSG and benefited from both PSG and SFEC at the same time:
Company selects Moneyworks 3-User PSG Package D from Advanced Micro Control Pte Ltd which cost them $7,095.00.
Upon completion and usage, company claims 50% of the qualifying cost from PSG – $7,095.00 x 50% = $3,547.50
Once PSG claims has been approved, you will also see SFEC grant approval amount of balance $3,547.50 x 90% = $3,192.75
Net amount after claiming both PSG and SFEC: $7,095.00 – $3,547.50 – $3,192.75 = $354.75 (represents approximately 5% nett cost to SME)
Note: Assuming SME is eligible for both PSG and SFEC, and balance amount subject to availability of the SME upon application and subject to approval of both agencies.
Cost BreakdownAfter PSG and SFEC
Moneyworks Package D before Grant: $7,095.00
Less PSG Claims 50%: -$3,547.50
Less SFEC 90% of Balance: -$3,192.75
Price of Software Plus Services $7,095.00
Software License (3-User), Training, Implementation and Forms Customisation
Productivity Solutions Grant 50% (Less) ($3,547.50)
50% of Qualifying Cost
SkillsFuture Enterprise Credit (Less) ($3,192.75)
90% of Out-Of-Pocket Expense ($3,547.50)
Final Cost to SME after PSG and SFEC Grant $354.75
Project Price - PSG Grant - SFEC