Wage Credit Scheme Sees 95,000 Singapore Employers to Get $450 Million
Singapore Employers Set to Receive Pay Out by 30 June 2020
Eligible employers in Singapore can expect to receive their payouts under the Government’s Wage Credit Scheme (WCS).
More than 95,000 eligible Singapore employers are expected to receive their wage credit. The amount under the WCS is more than $450 million. Under the WCS, the Government will be co-funding 20% of the qualifying wage increase. This includes increases given in 2017, 2018 and 2019. These increases were given to more than 800,000 employees in Singapore earning a gross monthly wage of $5,000.
Support for the Wage Credit Scheme has been enhanced this time. With the co-funding support by the Government qualifying increases in 2019 and 2020 were raised to 20% and 15% respectively. The gross monthly wage ceiling was raised for both years to $5,000. This means that more employees could qualify for wage credit.
Wage Credit Scheme Payout
Under the Budget 2020, eligible employers will be getting a supplementary payout by June 2020. You don’t need to apply to receive these payouts. If you are eligible, you will get a letter from the Inland Revenue Authority of Singapore (IRAS) by 30 June. This letter will confirm your payout amount.
As part of Singapore’s Smart Nation efforts, cheques will no longer be given. All payments will now be digital. Payouts will be made directly to your registered bank account via GIRO or PayNow Corporate.
If you wish to make an appeal regarding your Wage Credit Scheme payout, you must submit this to IRAS. The deadline is 31 August 2020. Each request will be considered on a case-by-case basis. For more information, visit the IRAS website or contact IRAS directly.