Digital payment modes for speedier payouts – Employers will receive Wage Credit Scheme payouts through PayNow Corporate or GIRO

Employers should make CPF contributions for employees by 14 January 2020 to receive Wage Credit Scheme payouts

To support businesses embarking on transformation efforts and encourage sharing of productivity gains with workers, eligible employers can look forward to the seventh tranche of Wage Credit Scheme (WCS) payouts in March 2020.  

2.         Employers do not need to apply for WCS payouts. Eligible employers will automatically be notified by end March 2020 of the amount of WCS payouts to be received.

3.         To qualify for the upcoming tranche of the WCS payouts, employers must:

            (a) Have given Singaporean employees who earned a gross monthly wage of up to $4,000, a gross monthly wage increase of at least $50 in 2019 and/or have sustained the gross monthly wage increase (at least $50) previously given to employees in 2018 and/or 2017;

                and

            (b) Have paid the employees’ mandatory CPF contributions on 2019 wages to the CPF Board by 14 January 2020¹.

4.         In line with Singapore’s Smart Nation efforts, the Inland Revenue Authority of Singapore (IRAS) will fully adopt digital payment modes for WCS payouts, and will no longer issue cheques. All WCS payouts from March 2020 will be credited directly to employers’ registered bank accounts through PayNow Corporate² or GIRO³. Employers who have not already done so are advised to set up a PayNow Corporate account or register for GIRO early.

5.         Please refer to the Annex (PDF, 96KB) for details on the WCS. For more information, you may visit the IRAS website (www.iras.gov.sg/irasHome/wcs.aspx), contact IRAS at 1800-352-4727 or email [email protected].

[1] Employers are required to make CPF contributions within 14 days from the end of each month for which CPF contributions are due. If the 14th day falls on a Saturday, Sunday or public holiday, the grace period will be extended to the next working day. Late payment interest will otherwise apply.

[2] 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 bank.

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

Ministry of Finance

Inland Revenue Authority of Singapore