Employers to receive first tranche of Wage Credit Scheme payouts by end March 2014

18 Mar 2014

Over 74,000 employers will receive about $800 million in the first tranche of Wage Credit Scheme (WCS) payouts by 31 March 2014. SMEs will receive around three-quarters of the sum disbursed.

The WCS payouts help co-fund 40% of the wage increases given in 2013 to approximately  two in three Singaporean employees who earned a gross monthly wage [1] of $4,000 and below in 2012.

The WCS was introduced in 2013 as part of the 3-Year Transition Support Package. It helps businesses to cope with rising wage costs so that they can free up resources to invest in productivity, and share their productivity gains with their employees.

In 2013, lower income Singaporeans in the bottom 20% received a median wage increase of 10% compared to 8% among all employees covered by the WCS.

Qualifying employers will receive a notification letter from the Inland Revenue Authority of Singapore (IRAS) by 31 March 2014, informing them of their total payout. Employers may also check their eligibility here from 21 March 2014 onwards. The payout will be made via direct credit to their GIRO bank account used for income tax and GST purposes, or by cheque.

Any appeal regarding the first tranche of payouts must be submitted to IRAS by 30 June 2014. Appeals will be considered on a case-by-case basis. Those who are successful in their appeals will be paid from June 2014 onwards.

For further information and assistance on the WCS, please visit the IRAS website or contact IRAS at 1800-352-4727 or wcs@iras.gov.sg.

Ministry of Finance

[1] Gross monthly wage is defined as total wage of the employee paid by the employer in the calendar year (including basic salary, overtime pay and bonuses), divided by the number of months of CPF contribution.