Singapore to release final tranche of wage subsidies

By the end of March, more than 99,000 employers will receive S$840 million (US$619 million) under the Wage Credit Scheme (WCS).
By: | March 23, 2022
Topics: Compensation and Benefits | Health and Wellness | News | Singapore

This was revealed in a media release by the Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS).

In the upcoming payout, the Government will co-fund 15% of qualifying wage increases given in 2021, 2020, and 2019 to more than 780,000 Singaporean employees earning a gross monthly salary of up to S$5,000 (US$3,686).

To be eligible for the upcoming payout, employers must have given their employees a salary increase of at least S$50 (US$37) or have sustained the salary increase of at least S$50 previously given to staff in 2019 and 2020.

More than S$2 billion (US$1.47 billion) in wage credits was disbursed in 2020 and 2021 to support employers during the pandemic, MOF and IRAS said.

“Employers do not need to apply to receive the payouts. Eligible employers will be notified by March 31, 2022 informing them of their payout amount,” they said, adding that payouts will be credited directly to employers’ registered bank accounts through PayNow Corporate or GIRO.

READ: Singapore’s labour market recovers to near pre-pandemic levels

The WCS was launched in 2013 as a three-year initiative to support businesses in their transformation and share productivity gains with workers. It was later extended, most recently at Budget 2021, with the aim of supporting increments to “help companies build up their local workforce and emerge stronger from COVID-19”, according to Channel News Asia.