Singapore’s government is about to hand out S$600 million in Wage Credit Scheme (WCS) payouts to over 90,000 employers who raised the salaries of some of their workers.
According to the Ministry of Finance (MOF), the payouts will be made via giro to the bank accounts of companies that are eligible by March 31.
Small and medium enterprises (SMEs) will receive around 70 per cent of the total sum disbursed, the ministry added.
Under the WCS, the Government is co-funding 20 per cent of qualifying wage increases given to more than 600,000 Singaporean employees in 2017 and 2018.
Employers do not need to apply to receive the WCS payouts, and only those who are eligible will receive letters from the Inland Revenue Authority of Singapore (IRAS) informing them of the amount received.
According to the IRAS website, eligible employers are those who give wage increases to their Singapore Citizen employees who:
Other eligibility conditions can be found at the IRAS website.
Introduced in 2013, the WCS has been extended twice – first in 2015 and again in 2018. The latest extension of three years was done to support businesses embarking on transformation efforts, and to encourage companies to share productivity gains with workers, MOF said.
The co-funding ratio will be decreased to 15 per cent in 2019 and 10 per cent in 2020.