$600 million in wage credits for more than 90,000 employers by 31 March 2019
15 Mar 2019More than 600,000 Singaporean employees will benefit from the wage credits
Over 90,000 employers in Singapore will receive more than $600 million in payouts by 31 March 2019 under the Wage Credit Scheme (WCS). SMEs will receive the bulk of the payouts, at around 70% of the total sum disbursed.
2 Through the WCS payouts in March 2019, the Government will co-fund 20% of qualifying wage increases given in 2017 and 2018 to more than 600,000 Singaporean employees.
3 Employers do not need to apply to receive the WCS payouts. Eligible employers will receive letters from the Inland Revenue Authority of Singapore (IRAS) by 31 March 2019 informing them of the amount of WCS payouts to be received. Employers who wish to check their eligibility can do so at www.iras.gov.sg/irasHome/wcs.
4 Appeals regarding WCS payouts must be submitted to IRAS by 30 June 2019. They will be considered on a case-by-case basis.
About the Wage Credit Scheme
5 The WCS was initially introduced in 2013 as a three-year scheme, supporting wage increases made over 2013 to 2015. In Budget 2015, It was extended for two more years, over 2016 to 2017. In Budget 2018, it was announced that the WCS will be further extended for three more years, i.e. 2018, 2019 and 2020, to support businesses embarking on transformation efforts and encourage sharing of productivity gains with workers. The Government will continue to fund 20% of wage increases in 2018. This co-funding ratio will be stepped down to 15% in 2019 and 10% in 2020.
6 Please refer to the Annex for details on the WCS. For more information, visit IRAS’ website (www.iras.gov.sg/irasHome/wcs.
Issued by:
Ministry of Finance
Inland Revenue Authority of Singapore
Singapore
15 March 2019
[1] Companies can sign up for PayNow Corporate by linking their company’s UEN (e.g. 123456789X) to their bank account via Internet Banking. For assistance, please approach the banks.