Over 95,000 Employers To Benefit From More Than $450 Million In Wage Credit Payouts
Covid-19 has undeniably been hard on everyone, but Singapore employers can look forward to some economic reprieve in this month.
Under the Wage Credit Scheme (WCS), the government will be co-funding 20% of wage increases with over $450 million in wage credits.
This was announced by Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS) in a joint media release on Thursday (11 Jun).
Over 95,000 employers to benefit from payouts
More than 95,000 employers are expected to benefit from the payouts, which will be disbursed by 30 Jun.
Under the WCS, the government will co-fund 20% of qualifying wage increases given from 2017-2019 to over 800,000 Singaporeans earning a gross monthly income of $5,000 or less.
Meanwhile, it was announced in Budget 2020 that the co-funding level for this year will be raised from 10% to 15%. The income ceiling has also been similarly raised from $4,000 to $5,000.
Employers need not apply to receive payouts
Employers need not apply to receive the payouts. Instead, IRAS will send them a letter to inform them of the receivable amount by 30 Jun.
As part of Singapore’s Smart Nation efforts, IRAS will also not be issuing cheques. They will credit the sum straight into the registered bank accounts of employers through PayNow Corporate or GIRO.
Appeals should be made by 31 Aug, and will be considered on a case-by-case basis.
Supporting innovating and productive businesses
In his Facebook post on Thursday (9 Jun), Finance Minister Heng Swee Keat said that the WCS is a “win-win-win for workers, businesses and Singapore”.
He also explains that the scheme is one way the government supports innovative and productive businesses, urging employers share productivity gains with employees.
Keeping workers employed
Hopefully, the payouts help employers keep their workers employed.
Especially with unemployment is looking to hit an all time high, such schemes are necessary now more than ever.
Featured image adapted from Facebook.
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