Over 85,000 Singapore firms to receive $660m in Wage Credit Scheme payout

SMEs will get 70% of the sum disbursed.

The Inland Revenue Authority of Singapore and the Ministry of Finance announced that more than 85,000 employers will be given about $660m in Wage Credit Scheme (WCS) payouts by March 31.

Through the WCS payouts in March 2017, the government co-funds 20% of the qualifying wage increases given in 2015 and 2016 to more than 600,000 employees in Singapore.

Meanwhile, SMEs will receive around 70% of the sum disbursed.

Eligible employers will receive letters from IRAS by end of March, informing them of the total WCS payout they will be receiving. The payout will be credited directly into the employers’ GIRO bank account used for income tax and GST purposes, or issued as cheques to employers.

To recall, the WCS was introduced in 2013 as part of the Transition Support Package. It is intended to help businesses cope with rising wage costs so that they can free up resources to invest in productivity, and share their productivity gains with their employees.

Under the extended WCS in 2016 and 2017, the government co-funds 20% of wage increases given to employees earning a gross monthly wage of $4,000 and below, over 2015 to 2017.