Bosses must make CPF contributions by Jan 14 to benefit from Wage Credit Scheme

Bosses must make CPF contributions by Jan 14 to benefit from Wage Credit Scheme

SINGAPORE - Employers can look forward to some funding relief in March 2015 when they will receive the second tranche of Wage Credit Scheme (WCS) payouts.  

Introduced in last year's budget, the scheme is part of a 3-year transition support package meant to help businesses cope with rising wage costs, by co-funding 40 per cent of the wage increases for Singaporean employees earning a gross monthly wage of $4,000 and below.

This allows businesses to free up resources for investments in productivity, and share the productivity gains with their employees, said the Ministry of Finance in a media statement on Sunday.

Employers do not have to apply for this scheme as the payouts are automatic. 

However, to qualify for this scheme, they would have to make their employees' full CPF contributions by Jan 14, 2015. 

Employers must also have given their employees a minimum wage increase of at least $50 this year in order to quality for WCS. 

Eligible employers will receive letters from the Inland Revenue Authority of Singapore (IRAS) by March 2015 informing them of the amount of WCS payout they will be given.

The payouts will then be credited directly into the employers' bank accounts or issued as cheques to employers.

maryanns@sph.com.sg

 

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