Employers reminded to make CPF Contributions for Employees by 14 January 2015 to receive Wage Credit Scheme Payouts16 Nov 2014
Employers are reminded to make the full CPF contributions for their employees by 14 January 2015, in order to receive the second tranche of Wage Credit Scheme (WCS) payouts in March 2015.
2. The Government introduced the WCS in 2013 as part of a 3-year Transition Support Package to help businesses cope with rising wage costs in a tight labour market. The WCS co-funds 40% of the wage increases given to Singaporean employees earning a gross monthly wage1 of $4,000 and below. This allows businesses to free up resources for investments in productivity, and share the productivity gains with their employees.
3. To qualify for the second tranche of the WCS payout, employers must fulfil the following conditions:
(b) Have sustained the wage increases (at least $50) previously given to employees in 2013; and
(c) Have paid the employees’ mandatory CPF contributions for 2014 wages to CPF Board by 14 January 20152.
4. 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 March 2015 informing them of the amount of WCS payout they will be given. The payouts will be credited directly into the employers’ bank accounts or issued as cheques to employers.
5. Please refer to Annex for details on the WCS. For further information and assistance on the WCS, employers can refer to the “Frequently Asked Questions” on the IRAS website (www.iras.gov.sg/irasHome/wcs.aspx) or contact IRAS at 1800-352-4727 or firstname.lastname@example.org.
Ministry of Finance
Inland Revenue Authority of Singapore
16 November 2014
1 Gross monthly wage is defined as total wage of the employee paid by the employer in the calendar year (including basic salary, overtime pay and bonuses), divided by the number of months of CPF contribution.
2 Employers are required to make CPF contributions within 14 days from the end of each month for which CPF contributions are due. Late payment interest will otherwise apply.