Wage Credit Scheme: $800 million in pay subsidies for over 74,000 employers by March 31
Published on Mar 18, 2014 3:54 PM
More than 74,000 employers will receive about $800 million by March 31, in the first tranche of a government scheme that subsidises pay rises for low- to middle-income Singaporeans. Small and medium enterprises will get about three-quarters of this sum, the Ministry of Finance said in a statement on Tuesday.
The Wage Credit Scheme was introduced in 2013, as part of a three-year package to help firms cope with wage costs as they restructure. It co-funds 40 per cent of pay rises given to Singaporeans who earn a gross monthly wage of up to $4,000.
Of the Singaporeans eligible for the scheme, two-thirds received pay rises last year, which this first tranche of Wage Credit Scheme payouts is helping to fund.
Lower-income Singaporeans - those in the bottom fifth - received a larger median pay rise of 10 per cent, compared to 8 per cent for all employees under this scheme.
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