Singapore employers to receive S$800m in wage credits this year Singapore employers to receive S$800m in wage credits this year

Singapore employers to receive S$800m in wage credits this year
27 Mar 2018

More than 90,000 employers in Singapore - mostly small and medium-sized businesses - will receive more than S$800 million (US$608 million) in pay-outs this month under the Wage Credit Scheme (WCS).

The Ministry of Finance and the Inland Revenue Authority of Singapore (IRAS) said that through the WCS pay-outs, the government has co-funded 20% of qualifying wage increases in 2015, 2016, and 2017 for more than 600,000 Singaporean employees.

According to the Singapore Business Review, payments will be credited directly to employers’ Giro bank accounts, which are used for income tax and Goods and Services Tax purposes, or issued as cheques. Appeals must be submitted to IRAS by 30 June 2018 and will be considered on a case-by-case basis.

The WCS has been extended for three more years until 2020 to continue support for businesses. It will be maintained at 20% in 2018, tapering to 15% in 2019 and to 10% in 2020.

Eligible employers do not need to apply to receive the pay-outs. They will receive pay-outs automatically in the March of the following year, based on whatever Central Provident Fund (CPF) contributions that are made to employees.

 Emma Wooll

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

 

 

 

More than 90,000 employers in Singapore - mostly small and medium-sized businesses - will receive more than S$800 million (US$608 million) in pay-outs this month under the Wage Credit Scheme (WCS).

The Ministry of Finance and the Inland Revenue Authority of Singapore (IRAS) said that through the WCS pay-outs, the government has co-funded 20% of qualifying wage increases in 2015, 2016, and 2017 for more than 600,000 Singaporean employees.

According to the Singapore Business Review, payments will be credited directly to employers’ Giro bank accounts, which are used for income tax and Goods and Services Tax purposes, or issued as cheques. Appeals must be submitted to IRAS by 30 June 2018 and will be considered on a case-by-case basis.

The WCS has been extended for three more years until 2020 to continue support for businesses. It will be maintained at 20% in 2018, tapering to 15% in 2019 and to 10% in 2020.

Eligible employers do not need to apply to receive the pay-outs. They will receive pay-outs automatically in the March of the following year, based on whatever Central Provident Fund (CPF) contributions that are made to employees.

 Emma Wooll

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

 

 

 

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