Corporate Wellbeing Asia 2023
1.9mn Singaporean employees to benefit from S$4bn Jobs Support Scheme payout from 29 July

1.9mn Singaporean employees to benefit from S$4bn Jobs Support Scheme payout from 29 July

This month, over S$4bn will be paid out under the Jobs Support Scheme (JSS), benefitting over 140,000 employers with 1.9mn local employees. 

According to a press release by the Ministry of Finance (MOF), employers who have made mandatory CPF contributions for their local employees will be qualified to receive the JSS payouts.

With this payout, over $15 billion would have been disbursed since the JSS was introduced in the Unity Budget on 18 February 2020.

For the payment in July, depending on the sector they are in, employers will receive up to 75% support for the first $4,600 of wages paid to local employees in February and March 2020. The percentages are as follows: 

  • Aviation and tourism sectors will receive 75% support.
  • Food services, retail, arts and entertainment, land transport, and marine and offshore sectors will receive 50% support.
  • All other sectors will receive 25% support.

Additionally, all employers will receive 75% support for wages paid in April 2020, during the Circuit Breaker. Part of this wage support was disbursed as an advance in the previous payout in April to provide immediate cash flow support. As the amount disbursed was calculated based on October 2019 wages, necessary adjustments will be made in the upcoming payment in July, in accordance with actual wages paid in April 2020.

Eligible employers will be notified by post of their payout amount. They can also log in to myTax Portal to view the electronic copy of their letter.

Those with PayNow Corporate or GIRO arrangements with IRAS can expect to receive the JSS payouts earlier from 29 July 2020. Other employers will receive their cheques from 4 August 2020. To receive the payouts earlier and seamlessly, employers are encouraged to sign up for ayNow Corporate by 24 July 2020.

Severe penalties for any attempt to abuse the JSS

The MOF warns that employers must ensure that mandatory CPF contributions made for their employees are accurate, so that they receive the right amounts of JSS payout.

Those found to be abusing the JSS will receive severe penalties. Other than having their JSS payouts denied, offenders can be charged under Section 420 of the Penal Code, where they may face up to 10 years of imprisonment and a fine. 

As part of the checks for JSS eligibility, a very small number of employers will receive letters from IRAS asking them to verify a self-review of their CPF contributions and to provide declarations or documents to substantiate their eligibility for JSS payouts. Their July 2020 payouts will be withheld for the time-being, pending the self-review and verifications by IRAS. Once the information is in order, they will receive the payout promptly.

Photo / 123RF

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