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Singapore’s Ministry of Finance (MOF) released a statement on 26 December 2018, reminding employers to make the full CPF contributions of eligible Singaporean employees by 14 January 2019 in order to receive the sixth tranche of Wage Credit Scheme (WCS) payouts in March 2019.
To qualify for the WCS payouts, employers should fulfil the following conditions:
- They should have given Singaporean employees a gross monthly wage increase of at least S$50 in 2018, and/or have sustained the gross monthly wage increase of at least S$50 previously given out in 2017.
- They should have paid the employees’ mandatory CPF contributions on 2018 wages to the CPF Board by 14 January 2019.
Employers need not apply to receive the payouts, and eligible employers will receive letters from the Inland Revenue Authority of Singapore (IRAS) by March 2019, informing them of the amount of WCS payouts to be received.
The payouts will either be credited directly into employers’ GIRO bank accounts used for Income Tax and GST, or to the bank account registered with PayNow Corporate. The MOF encourages employers who are not on these direct crediting modes to sign up for PayNow Corporate by 14 January 2019.
About the WCS
The WCS supports businesses embarking on transformation efforts and encourages the sharing of productivity gains with workers. The Government will continue to fund 20% of wage increases in 2018. This co-funding ratio will be stepped down to 15% in 2019 and 10% in 2020.
In any calendar year from 2013 to 2020, employers qualify for WCS payouts if they give wage increases of at least $50 to employees who are on their payroll for at least three months in the qualifying year, and who received CPF contributions for at least three months in the preceding year.
Employees could have been on the payroll of a different employer in the preceding year, but they must be on the payroll of a single employer for at least three months in the qualifying year.
Lead image / 123RF