By end of this month (31 March 2018), over 90,000 employers in Singapore will receive more than S$800 million in payouts under the Wage Credit Scheme (WCS).
A joint press statement by Ministry of Finance and Inland Revenue Authority of Singapore (IRAS) stated that eligible employers will receive letters from IRAS by 31 March 2018, informing them of the total WCS payouts they will be receiving. Employers do not need to apply for WCS.
Employers who wish to check their eligibility can do so at here from today (19 March). The payouts will be credited directly into the employers’ GIRO bank accounts used for income tax and GST purposes, or issued as cheques to them.
Appeals regarding WCS payouts must be submitted to IRAS by 30 June 2018. They will be considered on a case-by-case basis.
According to the statement, around 71% of the sum disbursed will go to SMEs. Through these payouts, the government co-funds 20% of qualifying wage increases given in 2015, 2016 and 2017 to more than 600,000 Singaporean employees.
At Budget 2018, the WCS was extended for three more years (2018, 2019 and 2020) with government co-funding maintained at 20% in 2018. Co-funding will subsequently be tapered to 15% in 2019 and to 10% in 2020.
Employers who give qualifying wage increases to Singaporean employees in 2018, 2019 and 2020, and/or sustain qualifying wage increases given in 2017, 2018 and 2019, will be eligible for the WCS payouts in 2019, 2020 and 2021 respectively.