More than 95,000 employers in Singapore will receive over S$450 million in payouts by the end of this month under the Wage Credit Scheme (WCS), the Ministry of Finance (MOF), and the Inland Revenue Authority of Singapore (IRAS) announced in a joint statement.
Through the WCS payouts in June 2020, the Government will co-fund 20% of qualifying wage increases given in 2019, 2018, and 2017 to more than 800,000 Singaporean employees earning a gross monthly wage of up to $5,000.
he Government co-funding levels for qualifying wage increases in 2019 and 2020 was raised by five percentage points to 20% and 15% respectively. The gross monthly wage ceiling was also raised from $4,000 to $5,000 for both years, which enabled more to qualify for the wage credit. Employers eligible for the Budget 2020 enhancements will receive the supplementary payout for the enhancement in June 2020.
Employers do not need to apply to receive the WCS payouts. Eligible employers will receive letters from the Inland Revenue Authority of Singapore (IRAS) by 30 June 2020 informing them of their payout amount. In line with Singapore’s Smart Nation efforts, IRAS has fully adopted digital payment modes for WCS payouts, and will no longer issue cheques. As such, the payouts will be credited directly to employers’ registered bank accounts through PayNow Corporate or GIRO.