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More than 90,000 employers to receive over S$600 million in wage credit payouts

SINGAPORE — More than 90,000 employers here will receive S$600 million and more in payouts by the end of the month, under the Wage Credit Scheme (WCS).

More than 90,000 employers to receive over S$600 million in wage credit payouts

The Government will co-fund 20 per cent of wage increases given to employees in 2017 and 2018 through the Wage Credit Scheme's payouts.

SINGAPORE — More than 90,000 employers here will receive S$600 million and more in payouts by the end of the month, under the Wage Credit Scheme (WCS).

Through these payouts, the Government will co-fund 20 per cent of wage increases given in 2017 and 2018 to more than 600,000 Singaporean employees, the Ministry of Finance (MOF) said in a press release on Friday (March 15).

About 70 per cent of the sum disbursed will be allocated to small- and medium- enterprises (SMEs), it added.

Employers need not apply to receive the payouts. They will receive letters from the Inland Revenue Authority of Singapore (Iras) by March 31 informing them of the amount they will get.

The payouts will be credited directly into the employers’ companies' Giro bank accounts used for income tax and the Goods and Services Tax, or their bank accounts registered with PayNow Corporate, MOF said.

Employers who wish to make appeals regarding payouts must submit them to the Iras by June 30 and they will be considered on a case-by-case basis.

ABOUT THE WAGE CREDIT SCHEME

  • The WCS was introduced in 2013 as a three-year scheme, supporting wage increases made from 2013 to 2015.

  • In Budget 2015, the scheme was extended two more years to cover 2016 and 2017.

  • In Budget 2018, it was announced that the WCS will be extended another three more years until 2020, to support businesses embarking on transformation efforts and to encourage the sharing of productivity gains with workers.

  • The Government will continue to fund 20 per cent of wage increases in 2018. This co-funding ratio will then be scaled back to 15 per cent in 2019 and 10 per cent in 2020.

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