Reminder to Employers to Make CPF Contributions for Employees by 14 January 2014 to get Wage Credit Scheme Payouts
18 Dec 2013Employers are reminded to fully pay the CPF contributions of their employees’ 2012 and 2013 wages by 14 January 2014, in order to enjoy the first tranche of Wage Credit Scheme (WCS) payouts at the end of March 2014.
2. The Government introduced the WCS for the period 2013 to 2015 as part of the 3-year Transition Support Package to help businesses cope with rising wage costs in a tight labour market. Under the WCS, the Government co-funds 40% of wage increases given to Singaporean employees earning a gross monthly wage[1] of $4,000 and below. This allows businesses to free up resources to make investments in productivity, and to share the savings with their employees.
3. There is no need to apply for the WCS. Eligible employers will automatically receive the WCS payouts based on the CPF contributions they have paid for their employees’ 2012 and 2013 wages. The first payout will be at the end of March 2014, for wage increases given to employees in 2013 over 2012.
4. Only CPF contributions made by 14 January 2014 will be considered in the calculation of wage increases which qualify for WCS.
5. Employers are required to pay CPF contributions within 14 days from the end of each month for which CPF contributions are due. Late payment interest will otherwise apply.
6. Details on the WCS are in the Annex. For further information and assistance on the WCS, employers may 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 wcs@iras.gov.sg.
Issued by Ministry of Finance
Singapore
13 December 2013
[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.