Summary of the Solidarity Budget 2020

Solidarity Budget 2020 SummaryDear Reader,

Welcome to our Solidarity Budget 2020 summary. This is the third round of support measures to help tide Singapore through the one month of COVID-19 “circuit breaker” distancing measures.

The following government support measures are announced by Minister for Finance, Mr. Heng Swee Keat in Parliament on Monday, 6 April 2020.

 

 

SAVING JOBS, SUPPORTING WAGES

Enhanced Jobs Support Scheme (JSS)Enhanced Jobs Support Scheme (JSS)

  • To help save jobs, Government will pay 75% on the first $4,600 of monthly salaries for every local employee for April 2020
  • From May 2020, wage support levels will revert to original levels in Resilience Budget (i.e. 75% wage support for aviation, and tourism sectors; 50% for the food services sector, and 25% for all other sectors)
  • First JSS payout will be brought forward to April 2020, from May 2020

 

Updated due to extension of Circuit Breaker period to 1 June 2020:

  • JSS wage subsidy remains at 75% for all sectors for May 2020
  • From June 2020, wage support levels will revert to original levels in Resilience Budget (i.e. 75% wage support for aviation, and tourism sectors; 50% for the food services sector, and 25% for all other sectors)
  • The Government will extend the JSS payout to cover wages of employees of a company who are also shareholders and directors of companies that were registered on or before 20 April 2020, and for the wages of shareholder-directors with Assessable Income of $100,000 or less for Year of Assessment 2019.
  • May 2020 payout will also include back-payment for companies with qualifying shareholder-directors whose wages were excluded from the first JSS payout in April 2020.

 

SUPPORTING ENTERPRISES

Cash Flow & Credit Support for EmployersCash Flow & Credit Support for Employers

  • Waiver of monthly Foreign Worker Levy (FWL) due in April 2020 to help firms with cash flow
  • FWL rebate of $750 in April 2020 from Levies paid this year, for each Work Permit or S Pass holder
  • Laws to ensure property owners pass on Property Tax rebate to tenants
  • 1-month rental waiver for office, commercial, and agriculture tenants of Government agencies
  • Government’s risk share raised from 80% to 90% for Enterprise Financing Schemes: EFS­Trade Loan, EFS-SME Working Capital Loan, and Temporary Bridging Loan Programme
    – Applies to loans initiated from 8 April 2020 till 31 March 2021

 

Updated due to extension of Circuit Breaker period to 1 June 2020:

  • Foreign Worker Levy Waiver and Rebate to be extended by 1 month

 

HELPING SELF-EMPLOYED PERSONS (SEPs)

SEP Income Relief Scheme (SIRS)SEP Income Relief Scheme (SIRS)

  • More SEPs will qualify for SIRS
    – Automatic inclusion for SEPs who also earn a small income from employment work
    – Enhanced Annual Value of property criterion of $21,000, up from $13,000 previously
  • Eligible SEPs will receive three quarterly cash payouts of $3,000 each in May, July, and October 2020
  • Other criteria remain unchanged

 

HELPING SINGAPOREANS

Cash Payments for SingaporeansCash Payments for Singaporeans

  • Additional cash payout of $300 for all Singaporeans aged 21 and above in 2020
  • $300 from enhanced Care & Support – Cash payout will be paid in April 2020

 

Assessable income in YA2019 Additional + Enhanced Cash Payments Total Cash Payment Payment in April 2020 Payment in June 2020

Not more than $28K

$300 + $900 $1,200 $600 $600

Above $28K to $100K

$300 + $600 $900 $600 $300
> $100K

or owns more than 1 property

$300 + $300 $600 $600

 

Other payments from Resilience Budget will remain, and will be paid out in June 2020

  • Cash payout for each Singaporean parent with at least 1 Singaporean child aged 20 and below in 2020 of $300
  • All Singaporeans aged 50 and above in 2020 will receive their $100 PAssion Card Top-up in cash
  • Total of up to $1,000 in cash for eligible Singaporeans in June 2020

 
Solidarity Budget 2020 Summary