Over 95,000 Employers to receive close to $2 billion in Wage Credit Scheme Payouts by 31 Mar 201625 Mar 2016
Over 95,000 employers in Singapore will receive about $1.9 billion in Wage Credit Scheme (WCS) payouts by 31 March 2016. SMEs will receive around 70% of the sum disbursed. Compared to 2015, some 10,000 more employers will be benefiting from WCS this year.
2 The third tranche of WCS payouts in March 2016 co-funds 40% of the wage increases given in 2013, 2014 and 2015 to more than 730,000 qualifying Singaporean employees who earned a gross monthly wage of $4,000 and below.
3 Eligible employers will receive letters from the Inland Revenue Authority of Singapore (IRAS) by 31 March 2016, informing them of the total WCS payout they will be receiving. Employers who wish to check their eligibility can do so at www.iras.gov.sg/irasHome/wcs.aspx. The payout will be credited directly into the employers’ GIRO bank account used for income tax and GST purposes, or issued as cheques to employers.
4 Appeals regarding the WCS payouts must be submitted to IRAS by 30 June 2016 for consideration on a case-by-case basis.
5 The Government has extended the WCS for two more years, i.e. 2016 and 2017, with 20% co-funding of wage increases given to Singaporean employees. Employers who give qualifying wage increases to Singaporean employees in 2016 and 2017, and/or who sustain qualifying wage increases given in 2015 and 2016, will be eligible for the WCS payouts in 2017 and 2018 respectively.
6 The WCS was introduced in 2013 as part of the Transition Support Package. It is intended to help businesses cope with rising wage costs so that they can free up resources to invest in productivity, and share their productivity gains with their employees.