Singapore Budget 2020: Jobs Support Scheme to subsidise wages of local workers

A new scheme will subsidise the wages of local workers to help employers retain them during the slowdown from the coronavirus outbreak, said Deputy Prime Minister Heng Swee Keat yesterday.

The Jobs Support Scheme will offset 8 per cent of the wages of every employee who is a Singaporean or permanent resident for three months, up to a monthly cap of $3,600.

The $1.3 billion payout will go to all enterprises by July 31, benefiting more than 1.9 million employees.

"Our foremost concern is jobs," said Mr Heng. "We want to help our workers retain their jobs, and use any lull period to upgrade their skills, to be ready when the tide turns."

Under the temporary scheme, employers will receive the 8 per cent cash grant on the gross monthly wages of each local employee on their Central Provident Fund (CPF) payroll for October to December last year.

Employers need not apply for the scheme, as the grant will be computed based on CPF contribution data.

Mr Heng also announced enhancements to the Wage Credit Scheme, which co-funds wage increases for Singaporean employees earning a gross monthly wage of up to $4,000.

This wage ceiling will be raised to $5,000, for increases given last year and this year.

The proportion given by the Government will also go up. It currently co-funds 15 per cent of qualifying wage increases from last year and 10 per cent of such increases this year.

This will be increased to 20 per cent for last year and 15 per cent for this year.

The $1.1 billion enhancements will go to about 90,000 enterprises, benefiting more than 700,000 Singaporeans.

Under the scheme, employers typically receive payouts automatically in the month of March after the qualifying year.

Employers getting additional wage credit from the new enhancements will receive a separate supplementary payout in the second half of this year.

Federation of Merchants' Associations, Singapore president Yeo Hiang Meng welcomed the enhancements. He had hoped for a higher wage cost offset, but said he understood this was a short-term measure and more might be done in the long term.

"Members should take this opportunity to look into their business practices and find areas for improvement, so that they emerge from the crisis better," he added. "Don't take the benefit and do nothing with it."

Labour MP Patrick Tay said: "This set of measures must be seen in its entirety to help reduce costs for employers and businesses, especially the deeply affected sectors. DPM Heng also mentioned that he is prepared to do more if the need arises."