1.9 Million Workers Will Be Aided With 4 Billion Dollars Through the Jobs Support Scheme (JSS) From 29th July
The Job Support Scheme (JSS) was designed and launched by Unity Budget to save jobs and help businesses pay wages of roughly 1.9 million workers. The initiative was created to aid struggling businesses to retain their workers amidst the COVID-19 outbreak. The hefty sum of four billion dollars disbursed through the JSS initiative will not only help the local employees, but it also supports businesses owners and reduces their financial burden.
How Will JSS Be Distributed?
Previously, the Deputy Prime Minister, Heng Swee Keat, announced JSS in the first Budget support package in February; the package will be enhanced in three consecutive stages. The total amount distributed by the government exceeds a whopping 15 billion dollars in total, according to the Ministry of Finance (MoF) and the Inland Authority of Singapore (IRAS). Through this initiative, firms can now get up to 75% support for wages paid during the circuit break in April.
Who is Eligible?
In addition, sectors that badly suffered due to the pandemic, such as aviation and tourism, will be granted even more help, up to 75%. On the other hand, retail, arts and entertainment, land transport, and marine and offshore sectors will be granted 50% support.
Seeing as the initial payout was based on October 2019’s wage calculation, the necessary amendments will be made accordingly in the next reimbursement in July, which will be in line with the actual wages paid during April 2020.
Employers who are eligible will be notified by post. They can also opt to check online through the myTaxPortal to view a copy of the electronic letter. Employers with PayNow Corporate or GIRO arrangements with the Iras will receive the pay-outs earlier, starting from 29th July 2020 and the other will begin receiving their payouts by cheques from 4th August 2020 onwards. Furthermore, if the business would want to receive the payments earlier, they can sign up for PayNow Corporate by 24th July 2020.
Keep in Mind to…
Another critical information to keep in mind is that employers are required to check that Central Provident Fund (CPF) contributions for their workers are accurate; this will allow them to receive the correct amounts from the JSS initiative.
Employers are strictly prohibited from abusing the JSS. Those who abuse the scheme will be penalised and denied the payments. If found guilty under the charged under Section 420 of the Penal Code, employers will be facing to 10 years of imprisonment and a fine.
Finally,
A small number of employers will be sent letters from IRAS, requesting them to verify a self-review of their CPF contributions and provide the necessary documents to prove their eligibility for the payouts. Their July 2020 payouts will be temporarily withheld and be released after the verification process by IRAS is complete.
