WCS payouts: Reminder to make CPF contributions by 14 January 2016

On By taxsgIn Corporate Tax, Latest Tax News, Reminders

7 January 2016

In order to receive the third tranche of Wage Credit Scheme (WCS) payouts in March 2016, employers of eligible Singaporean employees are reminded to make the full CPF contributions for these employees by 14 January 2016.

Qualifying conditions for receipt of the third tranche of the WCS payout are:

  • Singaporean employees’ wages increased by at least $50 in 2015 and/or sustained the wage increases (at least $50) previously given to employees in 2014 and 2013; and
  • Payment of the employees’ mandatory CPF contributions for 2015 wages to CPF Board by 14 January 2016.

The Inland Revenue Authority of Singapore (IRAS) will send out letters to qualifying employers to inform them of their total payout by March 2016.  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.

The WCS was introduced in Budget 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.

Since then, the WCS has been extended for two more years, i.e. 2016 to 2017, to allow businesses to adjust to rising wages.

Source: IRAS, Ministry of Finance (MOF)