Employers who are eligible for the Scheme can look forward to the seventh tranche of Wage Credit Scheme (WCS) payouts in March 2020 — a scheme which seeks to support businesses embarking on transformation efforts and encourage sharing of productivity gains with workers.
To qualify for the WCS payouts, employers must
- have given Singaporean employees who earned a gross monthly wage of up to $4,000, a gross monthly wage increase of at least $50 in 2019 and/or have sustained the gross monthly wage increase (at least $50) previously given to employees in 2018 and/or 2017, and
- have paid the employees’ mandatory CPF contributions on 2019 wages to the CPF Board by 14 January 2020.
The IRAS, in line with Singapore’s Smart Nation efforts will make WCS in digital payment modes.
All WCS payouts from March 2020 will be credited directly to the employers’ registered bank accounts through PayNow Corporate or GIRO.
Employers are advised to set up a PayNow Corporate account or register for GIRO early.
The Wage Credit is taxable in the hand of the Employer as the payout is revenue in nature.
For more information, please visit the IRAS website.
Source: IRAS website, 11 December 2019