Wage Credit Payouts for More Than 90,000 Employers
More Than 90,000 Employers Are Set to Receive Payouts by 31 March
More than 90,000 employers in Singapore will be receiving wage credit payouts amounting to more than $600 million by 31 March 2020.
Out of the 90,000 employers, most of them were Small and Medium Enterprises (SMEs). The payouts will be distributed under the Wage Credit Scheme (WCS) and will be made by 31 March. This is confirmed by the Inland Revenue Authority Singapore (IRAS) and the Singapore Ministry of Finance (MOF). Payments will be made directly to the Giro bank accounts of the employers.
The wage credit payouts scheme is meant to help handle wage costs which are on the rise. The scheme will be co-funding salary raises for employees in Singapore who earn up to $4,000 in gross monthly wages. Approximately 70% of these funds will be directed towards SMEs.
The Singapore Budget will also see two new enhancements rolled out under the WCS. The enhancements are part of the Stabilisation and Support Package worth $4 billion. These measures are meant to help employees remain employed while the country deals with the coronavirus crisis.
Under the scheme, the ceiling for gross monthly wages will be raised from $4,000 to $5,000. The raise is applicable to those who meet last year and this year’s qualifying wage increases. The co-funding levels by the Government will also be increased to 20% and 15% respectively.
All the employers in Singapore who are eligible for the enhancements in the Budget 2020 for wage increases in the previous year will also be receiving a supplementary payout. The payout is set to be made in the second half of this year. Eligible employers will be receiving letters from IRAS and MOF about the matter.
The WCS hopes to share its productivity gains with its employees and workers. The mutual support and trust that has been built within industries will be the ties that keep businesses and employees strong in the fight against the Covid-19. If there is any appeal to be made for the WCS payouts, these must be completed and submitted to IRAS by 30 June. Appeals will be on a case-per-case basis.