18 Mar 2021

 

Over $2 billion in wage credits disbursed to employers during pandemic 

$940 million in payouts will be disbursed by 31 March 2021 to over 98,000 employers in Singapore under the Wage Credit Scheme (WCS).

2          To support wage increases for Singaporean workers during the pandemic, the Government’s co-funding for qualifying wage increases in 2019 and 2020 was raised by five percentage points to 20% and 15% respectively, as part of the Unity Budget in 2020. The gross monthly wage ceiling for employees was also raised from $4,000 to $5,000 for both years, enabling more to qualify for the wage credit. Over $1 billion in wage credits was disbursed to more than 95,000 employers in 2020 for wage increases in 2019 to support employers through the pandemic. An additional payout was made in June 2020, on top of the annual payout made in March 2020.

3          Through the upcoming payout in March 2021, the Government co-funds 15% of qualifying wage increases given in 2017, 2018, 2019, and 2020 to more than 800,000 Singaporean employees earning a gross monthly wage of up to $5,000. This will support wage increases and benefit more than 98,000 employers.

4          Employers do not need to apply to receive the payouts. Eligible employers will receive letters from the Inland Revenue Authority of Singapore (IRAS) by 31 March 2021 informing them of their payout amount. The payouts will be credited directly to employers’ registered bank accounts through PayNow Corporate[1] or GIRO[2]. 

5          Any appeals regarding WCS payouts must be submitted to IRAS by 30 June 2021, and will be considered on a case-by-case basis.

6          Please refer to the Annex (PDF, 58KB) for details on the WCS. For more information, you may visit the IRAS website (www.iras.gov.sg/irasHome/wcs.aspx), contact IRAS directly at 1800-352-4727 or email [email protected].  

 

 

[1] Companies can sign up for PayNow Corporate by linking their company’s UEN (without suffix) to their bank account via internet banking. For assistance, please approach the banks.

 

[2] Once registered for GIRO for Income Tax/GST, this will be the default payment mode for IRAS’ related transactions such as tax payments.