20 March 2014
On 18 March 2014, the Ministry of Finance announced that over 74,000 employers will receive the first tranche of Wage Credit Scheme (WCS) payouts by 31 March 2014. Small and medium enterprises (SMEs) will receive around three-quarters of the S$800 million to be disbursed.
The WCS was introduced in 2013 as part of the 3-Year Transition Support Package to help businesses cope with rising wage costs. From 2013 to 2015, the Government will co-fund 40% of wage increases given to Singaporean employees earning a gross monthly wage of S$4,000 and below. The WCS payouts will allow businesses to free up resources to make investments in productivity and share the productivity gains with their employees.
The Inland Revenue Authority of Singapore (IRAS) will send out letters to qualifying employers to inform them of their total payout by 31 March 2014. From 21 March 2014, employers may also check their eligibility on the IRAS website. The WCS payout will be made via direct credit to their GIRO bank account used for income tax and goods and services tax (GST) purposes, or by cheque.
Any appeal regarding the first tranche of payouts must be submitted to IRAS by 30 June 2014 and will be considered on a case-by-case basis. Those who are successful in their appeals will be paid from June 2014 onwards.
For more information on the WCS, please refer to the IRAS website.
Source: Ministry of Finance