Support for Over 99,000 Employers in Singapore
More than 99,000 employers across Singapore will receive S$840 million in the last instalment of the Wage Credit Scheme (WCS) payouts by the end of March, according to a joint announcement from the Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS).
Supporting Wage Increases
The upcoming payouts represent the Government’s 15 per cent co-funding for qualifying salary increments provided in 2019, 2020, and 2021. These payments benefit over 780,000 Singaporean employees earning up to S$5,000 per month, incentivising employers who have sustained or increased their workers’ wages by at least S$50 in those years.
About the Wage Credit Scheme
Initially launched in 2013 as a three-year initiative, the WCS aimed to assist businesses in sharing productivity gains with their workforce. The scheme was later extended, most recently in Budget 2021, to encourage salary increments as companies rebuilt their local workforce in the wake of COVID-19.
To date, the WCS has distributed more than S$2 billion in wage credits, providing significant relief to employers during the pandemic.
How Payments Will Be Made
Eligible employers will automatically receive their payouts through PayNow Corporate or GIRO, with no application required. Notifications detailing the amount will be sent out by 31 March 2022. Employers not registered with PayNow Corporate or GIRO must complete registration to access their funds.
Unclaimed payouts will remain in employers’ WCS accounts until 30 September 2022, after which they will no longer be available. Appeals regarding payout amounts must be submitted to IRAS by 30 June 2022 for case-by-case review.
Aiding Employers’ Recovery
By co-funding salary increments, the WCS underscores the Government’s commitment to helping businesses enhance workforce resilience and emerge stronger post-pandemic. Employers are encouraged to take advantage of these funds to continue investing in their employees and strengthening their operational capabilities.
