Aviation firms to get wage help for 6 more months under S$130m extension to grant: CAAS

SINGAPORE — The Government will continue paying 30 per cent of aviation workers’ salaries from October to December, with support tapering to 10 per cent between January and March next year, under a S$130 million extension to the Aviation Workforce Retention Grant. 

The Civil Aviation Authority of Singapore (CAAS) said on Monday (Sept 27) that for eligible aviation firms, the support applies to the first S$4,600 of gross monthly wages paid to each Singapore employee. 

The Covid-19 pandemic has crippled international travel since early last year, with the aviation industry remaining among the hardest hit of all economic sectors, CAAS said in a statement. 

Changi Airport’s total passenger traffic movement is at 3.6 per cent of pre-pandemic levels as of this month. 

Aviation companies have also reduced their manpower to adjust to the decreased air travel activity, the authority added. 

The grant’s extension is expected to benefit more than 100 companies in the sector. 

The Aviation Workforce Retention Grant was introduced during the Government’s Budget this year as part of the OneAviation Support Package, which provides the aviation sector with targeted help. 

Under the Jobs Support Scheme, the Government’s wage subsidy initiative, aviation companies also received wage support of 30 per cent from April to June, and 10 per cent support for wages from July to September.

The retention grant, which was to have stopped this month, had earlier topped up the support to 50 per cent. 

This meant that eligible aviation firms received help in the form of an extra 20 per cent of the first S$4,600 of gross monthly wages from April to June, and an extra 40 per cent from July to September. 

Mr Han Kok Juan, director-general of CAAS, said that with Singapore’s launch of vaccinated travel lanes to Germany and Brunei, the aviation sector was starting to see some “green shoots of growth”. 

“The extension of the Aviation Workforce Retention Grant will help aviation companies tide over this difficult time and retain and rebuild core capabilities to position for recovery.”