SINGAPORE - More than 95,000 employers will receive over $450 million in payouts this month under the Wage Credit Scheme (WCS).
The Ministry of Finance and Inland Revenue Authority of Singapore (Iras) said in a statement on Thursday (June 11) that the wage credit payouts will be given by June 30.
Through these payouts, the Government will co-fund 20 per cent of qualifying wage increases given in 2019, 2018, and 2017 to more than 800,000 Singaporean employees earning a gross monthly wage of up to $5,000.
By co-funding wage increases, the WCS supports companies in their efforts to transform and encourages them to share productivity gains with their workers.
During the Budget 2020 speech, the scheme's gross monthly wage ceiling was raised from $4,000 to $5,000 per month for 2019 and 2020 qualifying wage increases.
The Government also announced that its co-funding levels for these 2019 and 2020 qualifying wage increases will be raised from the current 15 per cent and 10 per cent, to 20 per cent and 15 per cent, respectively.
Deputy Prime Minister Heng Swee Keat wrote on his Facebook page on Thursday: "This is one way the Government supports businesses which are able to innovate and increase the productivity of their workforce - a win-win-win for workers, businesses and Singapore."
He said that even as the Covid-19 situation evolves, the Government's priorities remain the same - to keep workers employed and help viable businesses stay afloat.
He added: "I strongly urge employers to make full use of the support available and hold on to your workers.
"Do utilise this downtime to embark on transformation efforts and share productivity gains with your workers."
Employers eligible for the Budget 2020 enhancements will receive the supplementary payout for the enhancement this month.
They do not need to apply to receive the payouts. Those that are eligible will receive letters from Iras by the end of this month informing them of how much they will get.
The payouts will be credited directly to employers' registered bank accounts through PayNow Corporate or Giro.
Appeals over payouts must be submitted to Iras by Aug 31 and will be considered on a case-by-case basis.
For more details on the scheme, employers may go to the Iras website, e-mail wcs@iras.gov.sg or call Iras on 1800-352-4727.
