Wage credit: $800m for over 90,000 employers

The Wage Credit Scheme helps employers share their productivity gains with their employees by co-funding wage increases.
The Wage Credit Scheme helps employers share their productivity gains with their employees by co-funding wage increases. PHOTO: ST FILE

More than 90,000 employers, comprising mostly small and medium-sized enterprises (SMEs), will receive more than $800 million in payouts this month under the Wage Credit Scheme.

The Ministry of Finance and the Inland Revenue Authority of Singapore said in a joint statement yesterday that the wage credit payouts will be given by March 31.

SMEs will receive 71 per cent of the sum disbursed, which is meant to help businesses cope with rising wage costs.

Introduced in 2013, the scheme helps employers share productivity gains with their employees by co-funding wage increases for Singaporeans up to a gross monthly wage of $4,000. It was announced at this year's Budget that the scheme will be extended for three years to support businesses in their transformation efforts. The Government's co-funding will be 20 per cent this year, 15 per cent next year and 10 per cent in 2020.

In this month's payouts, the Government will co-fund 20 per cent of qualifying wage increases given in 2015, 2016 and last year for more than 600,000 Singaporean workers. The statement said that eligible employers will receive letters from Iras by March 31. The letter will inform them of the total amount of payouts they will receive.

Employers can check if they are eligible at www.iras.gov.sg/irasHome/ wcs.aspx

The payouts will be credited directly into the employers' Giro bank accounts used for income tax and goods and services tax purposes, or issued to them as cheques.

Appeals regarding payouts must be submitted to Iras by June 30 and will be considered on a case-by-case basis, the statement added.

For more information, visit the Iras website or contact Iras on 1800-352-4727.

Ng Huiwen

A version of this article appeared in the print edition of The Straits Times on March 20, 2018, with the headline 'Wage credit: $800m for over 90,000 employers'. Print Edition | Subscribe