Over $600 Million in Payouts to Over 90,000 Employers

Some 90,000 employers in Singapore will receive over $600 million in payouts by 31 March 2020, under the Wage Credit Scheme (WCS). Small and medium enterprises (SMEs) will receive the bulk of the payouts, at around 70 per cent of the total sum disbursed.

Employers do not need to apply to receive the WCS payouts. Eligible employers will receive letters from the Inland Revenue Authority of Singapore (IRAS) by 31 March 2020 informing them of their WCS March payout amount.

IRAS will only use digital payment modes for WCS payouts. The payouts will be credited directly to the employers’ registered bank accounts through PayNow Corporate or GIRO.

Appeals regarding WCS payouts must be submitted to IRAS by 30 June 2020, and will be considered on a case-by-case basis.

What is the WCS?

The WCS was introduced in 2013 to support businesses embarking on transformation efforts and to encourage the sharing of productivity gains with workers.

During Budget 2020, the Ministry of Finance (MOF) enhanced the WCS by:

• Raising the gross monthly wage ceiling from $4,000 to $5,000 for 2019 and 2020 qualifying wage increases.
• Increasing the Government’s co-funding levels for 2019 and 2020 to 20 per cent and 15 per cent respectively.

More information on the WCS can be found here.