Employers reminded about Wage Credit Scheme payout deadline

November 18, 201410:17 am388 views

SINGAPORE — The Ministry of Finance has reminded employers to make their full Central Provident Fund (CPF) contributions for their employees by Jan 14 to receive the second tranche of the Wage Credit Scheme (WCS) payouts next March.

The WCS is part of the three-year S$5.3 billion Transition Support Package introduced last year to help companies — especially small and medium enterprises — reduce business costs and raise productivity. The S$3.6 billion WCS is aimed at addressing rising wage costs in a tight labour market.

The scheme co-funds 40 per cent of wage increases given to Singaporean employees earning a gross monthly wage of S$4,000 and below.

To qualify, employers must have given their Singaporean employees a minimum wage increase of at least S$50 this year, sustained wage rises of at least S$50 given last year and paid employees’ mandatory CPF contributions for wages this year, before Jan 14.

The first tranche of payouts saw more than 74,000 employers receive about S$800 million in March.

Eligible employers will receive letters from the Inland Revenue Authority of Singapore by next March informing them about how much they will be given.

The payouts will be credited into employers’ bank accounts or issued as cheques.

 

news source & image credits: todayonline.com / iras.gov.sg

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