Singapore government distributes over S$1 billion in payouts in 2020 to co-fund employee wages
The Singapore government has so far distributed over S$1 billion (US$753.18 million) in payouts in 2020, under a dedicated scheme which helps businesses fund the wage increases of their Singaporean staff.
Under the Wage Credit Scheme (WCS), over 95,000 employers have already received the payouts, said the Ministry of Finance and Inland Revenue Authority of Singapore (IRAS) in a statement.
To qualify for the WCS, employers must have raised the gross monthly wages of Singaporeans by at least S$50 (US$38) in 2020, or maintained the previous wage increase of at least S$50 given in 2017, 2018 and/or 2019, or done both of these. This would apply to Singaporean workers who earn a gross monthly wage of up to S$5,000 (US$3,766).
Firms must also have paid for employees’ Central Provident Fund (CPF) contributions on 2020’s wages by Jan 14 2021. The payouts will be credited directly to the employers’ registered bank accounts either through a PayNow Corporate account or GIRO.
The next tranche of payouts will be in March 2021, for qualifying wage increases in 2020. Eligible businesses need not apply for the payouts, and will be automatically notified by end-March next year on the amount that they should expect to receive, said the government.
In 2020, the government has so far distributed WCS payouts in two rounds, first in March and later, in June.