Few will get Wage Credit payouts directly
Many large firms plan to use funds for staff training, skills upgrading
Published on May 23, 2014 7:11 AM
Companies have received their first payouts from a scheme that subsidises wage increases, but most large firms are unlikely to hand the money directly to employees.
More than 10 prominent Singapore companies were contacted about their plans for the first Wage Credit Scheme payout, which went out in March.
While almost all declined comment, The Straits Times understands that many large companies are planning to channel the funds towards training and skills upgrading for staff.
Under the Wage Credit Scheme introduced in the 2013 Budget, the Government subsidises 40 per cent of pay rises given to Singaporean workers earning up to $4,000 a month. It expires next year.
To continue reading, log in if you are a subscriber
If you are not a subscriber, you can get instant, unlimited access here
UP TO FIRMS TO DECIDE
Larger companies usually focus on training and development. The point is to increase companies' capabilities.
- Mr Victor Mills, the chief operating officer and acting chief executive of the Singapore International Chamber of Commerce, saying firms should do the most appropriate thing for the companies and their employees
Of course we want companies to share the payment with workers, but we are realistic that the SMEs that face cost constraints may not be able to do so.
- Veteran labour Member of Parliament Yeo Guat Kwang, saying that small and medium-sized enterprises may face difficulties giving the Wage Credit payouts to workers