Business

90,000 employers to get over $800 million under Wage Credit Scheme

More than 90,000 employers, comprising mostly small and medium-sized enterprises, will receive over $800 million in payouts this month under the Wage Credit Scheme.

The Ministry of Finance and the Inland Revenue Authority of Singapore (Iras) said in a joint statement yesterday that the wage credit payouts will be given by March 31.

SMEs will receive 71 per cent of the sum disbursed, which is meant to help businesses cope with rising wage costs.

Introduced in 2013, the scheme helps employers share their productivity gains with their employees by co-funding wage increases for Singaporeans up to a gross monthly wage of $4,000.

It was announced at this year's Budget that the scheme will be extended for three years to support businesses in their transformation efforts.

The Government's co-funding will be 20 per cent this year, 15 per cent next year and 10 per cent in 2020.

CO-FUND

In this month's payouts, the Government will co-fund 20 per cent of qualifying wage increases given in 2015, 2016 and last year for more than 600,000 Singaporean employees.

The statement said that eligible employers will receive letters from Iras by March 31.

The letter will inform them of the total amount of payouts they will receive.

Employers who wish to check if they are eligible can do so at Iras website www.iras.gov.sg/irasHome/wcs.aspx

The payouts will be credited directly into the employers' Giro bank accounts used for income tax and goods and services tax purposes, or issued to them as cheques.

BUSINESS & FINANCE