Entrepreneur

Over $600M Wage Credit Payouts To Benefit S'pore Employers - 70% Will Go Towards SMEs

The Wage Credit Scheme (WCS) was introduced by the Government in 2013 to support businesses embarking on transformation efforts and encourage the sharing of productivity gains with workers.

It was originally intended to last three years, but was extended for two years (2016 to 2017) in Budget 2015, and another three more years (2018 to 2020) in Budget 2018.

Under this scheme, more than 90,000 employers in Singapore will receive S$600 million and more in payouts by the end of this month.

About 70 per cent of the sum disbursed will be allocated to small- and medium- enterprises (SMEs).

Through these payouts, the Government will co-fund 20 per cent of wage increases given in 2017 and 2018.

The co-funding ratio will however be scaled back to 15 per cent in 2019, and 10 per cent in 2020.

What Do Employers Need To Do?

Employers need not make any form of application to receive the payouts.

Instead, they will receive letters from the Inland Revenue Authority of Singapore (IRAS) by March 31, which will inform them of the amount they will get.

The payouts will be credited directly into the employers’ companies’ GIRO bank accounts used for income tax and the Good and Services Tax (GST), or their bank accounts registered with the PayNow Corporate.

Employers who wish to make appeals regarding payouts must submit them to the IRAS by June 30, and they will be considered on a case-by-case basis.

Featured Image Credit: The Independent Singapore

 

Subscribe to Vulcan Post Newsletter

Stay updated with our weekly curated news and updates.