, Singapore

90,000 firms to get $800m in payouts from Wage Credit Scheme

SMEs will receive the bulk of the payouts, at around 71% of the sum disbursed.

Over 90,000 employers in Singapore will receive more than $800m in payouts by 31 March 2018 under the Wage Credit Scheme (WCS). According to the Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS), SMEs will receive the bulk of the payouts, at around 71% of the sum disbursed.

In a joint statement, the two said that through the WCS payouts in March 2018, the Government co-funds 20% of qualifying wage increases given in 2015, 2016, and 2017 to more than 600,000 Singaporean employees.

Eligible employers will receive letters from the Inland Revenue Authority of Singapore (IRAS) by 31 March 2018, informing them of the total WCS payouts they will be receiving. The payouts will be credited directly to the employers’ GIRO bank accounts used for income tax and GST purposes, or issued as cheques to them.

“Appeals regarding WCS payouts must be submitted to IRAS by 30 June 2018. They will be considered on a case-by-case basis,” the two said.

At Budget 2018, the WCS was extended for three more years (2018, 2019, and 2020) to continue support for businesses. MOF and IRAS said the government co-funding will be maintained at 20% in 2018, and subsequently tapered to 15% in 2019 and to 10% in 2020. “Employers who give qualifying wage increases to Singaporean employees in 2018, 2019 and 2020, and/or sustain qualifying wage increases given in 2017, 2018 and 2019, will be eligible for the WCS payouts in 2019, 2020 and 2021 respectively,” the two added.

Employers do not need to apply for WCS. Eligible employers will receive payouts automatically in March of the following year, based on CPF contributions made to employees.

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