The fifth tranche of the Wage Credit Scheme (WCS) for employers of eligible Singaporean employees will be paid out in March 2018 and employers are to ensure that the full CPF contributions to these employees are made by 15 January 2018, in order to receive the payout.
According to the Inland Revenue Authority of Singapore (IRAS), employers must ensure that that following conditions are complied with in order to qualify for the WCS payout:
- They have given Singaporean employees a gross monthly wage increment of a minimum of $50 in 2017 and/or have sustained the gross monthly wage increases (at least $50) previously given to employees in 2015 and 2016; and
- Have paid the employee’s mandatory CPF contributions for 2017 wages to the CPF board by 15 January 2018.
About the WCS
The WCS forms part of the Transition Support Package announced in Budget 2013, which has since been extended until 2017 whereby the Government co-funds 20% of the wage increases given to Singaporean employees earning a gross monthly wage of $4,000 and below.
Application to Receive WCS Payout Not Required
Employers are not required to apply to IRAS in order to receive the payouts, but eligible employers will instead will receive written notifications from IRAS with information regarding the amount of WCS payout they are entitled to
Mode of Payment
WCS payouts will be in the form of cheques or credited directly into the employer’s bank account.
For more information, refer to IRAS’ website.
Source: Inland Revenue Authority of Singapore