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Over $1 Billion in 2020 Wage Credit Scheme Payouts to more than 95,000 Employers; Employers to make CPF Contributions by 14 Jan 2021 to receive next tranche of 2021 Payouts in Mar 2021

22 Dec 2020

To support businesses embarking on transformation efforts and encourage sharing of productivity gains with workers, eligible employers can look forward to the eighth tranche of Wage Credit Scheme (WCS) payouts in March 2021.

2. In 2020, two rounds of WCS payouts were disbursed – the usual main payout in March 2020, and a supplementary payout in June 2020 arising from the increase in co-funding ratio and qualifying wage ceiling announced at the Unity Budget. The payouts amounted to over $1 billion for more than 95,000 employers.

3. The next tranche of payouts in March 2021 are for qualifying wage increases in 2020. Employers do not need to apply for WCS payouts. Eligible employers will automatically be notified by end March 2021 of the amount of WCS payouts to be received.

4. To qualify for the upcoming tranche of the WCS payouts, employers must:

(a) Have given Singaporean employees who earned a gross monthly wage of up to $5,000, a gross monthly wage increase of at least $50 in 2020, and/or have sustained the gross monthly wage increase (at least $50) previously given to employees in 2017, 2018 and/or 2019; and

(b) Have paid the employees’ mandatory CPF contributions on 2020 wages to the CPF Board by 14 January 2021 [1].

Full Digital Payment

5. The March 2021 payouts will be credited directly to employers’ registered bank accounts through PayNow Corporate[2] or GIRO[3]. Employers who have not already done so are advised to set up a PayNow Corporate account or register for GIRO early. Employers are encouraged to do so by end-February to receive the payouts in March.

6. Please refer to the Annex for details on the WCS. For more information, you may visit the IRAS website (www.iras.gov.sg/irasHome/wcs.aspx), contact IRAS at 1800-352-4727 or email wcs@iras.gov.sg.

Issued by:

Ministry of Finance

Inland Revenue Authority of Singapore

Singapore

22 December 2020

[1]Employers are required to make CPF contributions within 14 days from the end of each month for which CPF contributions are due. If the 14th day falls on a Saturday, Sunday or public holiday, the grace period will be extended to the next working day. Late payment interest will otherwise apply.

[2]Companies can sign up for PayNow Corporate by linking their company’s UEN (without suffix) to their bank account via internet banking. For assistance, please approach the bank.

[3]Once registered for GIRO for Income Tax/GST, this will be the default payment mode for IRAS’ related transactions such as tax payments.