Employers looking forward to receiving the second wave of Wage Credit Scheme (WCS) payouts in March 2015 are reminded to make the full Central Provident Fund (CPF) contributions for their employees by 14 January 2015.
The WCS was introduced in 2013 as part of a 3-year transition support package by the Government ,to help businesses manage the increasing wage costs in a tight labour market.
Co-funding 40% of wage increases given to employees earning a gross monthly wage of $4,000 and below, the WCS allows “businesses to free up resources for investments in productivity, and share the productivity gains with their employees”.
However, the Ministry of Finance and Inland Revenue Authority of Singapore (IRAS) noted that in order to qualify for the coming wave of payouts, a few conditions that must be met.
The employer must have either given Singaporean employees a minimum wage raise of at least $50 in 2014 or have sustained a minimum $50 wage raise given in 2013 or both.
Additionally, the employer must also have paid the full CPF contributions of the employees’ 2014 wages by 14 January 2015.
Employers do not need to apply to receive the WCS payouts. Instead, eligible employers will receive letters from IRAS by March 2015 informing them of the amount of WCS payout they will be given. The payouts will be credited directly into the employers’ bank accounts or issued as cheques to employers.