Over 95,000 employers to get S$1.9b in wage payouts

March 28, 201610:20 am271 views
Over 95,000 employers to get S$1.9b in wage payouts
Higher CPF contributions may help attract older workers back to the workforce to address the labour crunch. TODAY FILE PHOTO

More than 95,000 employers here will receive S$1.9 billion in Wage Credit Scheme (WCS) payouts by March 31, which is about 10,000 more beneficiaries than in 2015.

In a joint press release yesterday, the Ministry of Finance and the Inland Revenue Authority of Singapore (IRAS) said small and medium enterprises (SMEs) are getting around 70 per cent of the disbursements.

This is the third tranche of WCS payouts, which are for co-funding 40 per cent of wage increases given in 2013, 2014 and 2015 to more than 730,000 qualifying Singaporean employees who earned a gross monthly wage of S$4,000 and below.

Eligible employers will receive letters from IRAS by March 31, informing them of the total WCS payout they will be receiving. Appeals regarding the payouts must be submitted to IRAS by June 30 for consideration on a case-by-case basis.

Last year, the Government announced that it is extending the WCS for two more years but at reduced support levels. For 2016 and 2017, firms can get 20 per cent co-funding of wage increases given to eligible workers.

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.

In his Budget speech on Thursday, Finance Minister Heng Swee Keat announced measures to give businesses, especially homegrown SMEs, a big lift as the economy undergoes restructuring.

The centrepiece was a S$4.5 billion Industry Transformation Programme to help companies grow capabilities and expand overseas, as well as tap into automation and technology.

news source: todayonline.com

Read more HR NEWS in ASIA

(Visited 1 times, 1 visits today)