Wage Credit Scheme
The Wage Credit Scheme is a three-year scheme introduced in Budget 2013 which seeks to co-fund 40% of the wage increase for employers between 2013 to 2015, and this is given to Singaporean workers earning a total monthly wage of $4,000. However, Budget 2021 which was extended by another year, sought to co-fund Singaporean employee wage increases up to 15% for a qualifying gross income set at $5000.
Qualifying Eligibility Conditions
- All Singaporean workers who have received CPF contributions from one (1) employer within three months before the qualifying year for the wage credit scheme.
- The employer must have settled or paid the workers within the three months of the qualifying year for the scheme.
- The Singaporean worker must have at least a fifty-dollar increase in his or her monthly wage.
- The Singaporean worker must be solely a worker, and should not own a part of the business whether as a partner, shareholder, or proprietor.
- The business or entity in question has to be registered in Singapore.
Note: Qualifying years refer to the following years; 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, and 2021. Also, the three-month requirement for these conditions needs not to be consistent.
The Singaporean government has the right to hold out or restrain a person from obtaining the WCS payout if the employer is found to be;
- Unqualified for the WCS payout.
- A partaker or mastermind of a criminal act that relates to the employer’s business or field of trade.
This is usually done by notice from IRAS to inform eligible employers of their qualifications for the Wage Credit Scheme. As such, formal application is not required. And eligible employers would receive their payouts on the 31st March of the qualifying year.
The WCS payout is aimed at reducing the labour cost of sustaining businesses even with the rampant economic challenges of the country.