Over $4 billion under the Jobs Support Scheme (JSS) will be paid out to 140,000 employers from July 29 to help them retain their workers amid the Covid-19 pandemic.
This will help businesses to pay the wages of some 1.9 million local employees in total, the Ministry of Finance (MOF) said yesterday.
With this latest round of payouts, the total amount disbursed under the scheme will exceed $15 billion, said the ministry in a joint statement with the Inland Revenue Authority of Singapore (Iras).
The JSS was introduced in the first Budget support package by Deputy Prime Minister Heng Swee Keat in February, and enhanced in the three successive packages.
Under the scheme, firms can get up to 75 per cent of the first $4,600 of gross monthly wages for each local worker subsidised. Sectors more badly hit by the pandemic, such as aviation and tourism, get more help.
MOF and Iras said this month's payment goes towards supporting wages paid to local workers in February and March. All employers will also get 75 per cent support for wages paid in April, during the circuit breaker. Part of this was already given as an advance that month "to provide immediate cash flow support", the authorities said.
As the amount disbursed was calculated based on last October's wages, the upcoming payout will be adjusted according to actual wages paid this April, they added.
Eligible employers will be notified by post of the payout and can also log in to myTax Portal to view the electronic copy of the letter.
Those with PayNow Corporate or Giro arrangements with Iras can expect their payouts from July 29.
Others will receive their payouts through cheques from Aug 4 but can receive their payouts earlier if they sign up for PayNow Corporate with their banks by Friday.
Employers should make sure that mandatory Central Provident Fund (CPF) contributions made for their employees are accurate, so that they receive the right amounts of JSS payout, added Iras and MOF.
Businesses that have benefited from the JSS said they were grateful for the support.
Mr Pek Lian Guan, chief executive of construction firm Tiong Seng Holdings, said the scheme has been critical to keeping its workers. "Without the JSS support, we would not have been able to retain our staff and continue to pay their salaries," he said.
Similarly, Mr Chin Zheng, business development manager at eatery Stuff'd, said the payouts helped to keep its outlets open and support its workers with measures such as interest-free loans and paying staff from vulnerable groups to stay at home during the pandemic.
Iras and MOF also warned of severe penalties for any attempts to abuse the scheme, including having the payouts denied, and being jailed for up to 10 years and fined.
Those who want to report malpractices or potential abuses of the JSS can e-mail jssreport@iras.gov.sg or visit the website.
As part of the checks for JSS eligibility, a very small number of employers will receive letters from Iras to ask them to verify their CPF contributions and to provide declarations or documents to substantiate their eligibility for JSS payouts.
Their payouts for this month will be withheld in the meantime but will be paid out once the information is in order, said MOF and Iras.
Posting on Facebook yesterday, Mr Heng, who is also Finance Minister, urged all employers to do their utmost to retain their staff.
He also said businesses should take the opportunity to transform their operations and upskill employees during this period.
"Together, we can emerge stronger from this crisis," he said.
