Employers of eligible Singaporean employees are reminded to make the full CPF contributions for these employees by 16 January 2017 in order to receive the fourth tranche of Wage Credit Scheme (WCS) payouts in March 2017.
To qualify for the fourth tranche of the WCS payout, employers must have given Singaporean employees a wage increase of at least $50 in 2016 and/or have sustained the wage increases (at least $50) previously given to employees in 2015; and have paid the employees’ mandatory CPF contributions for 2016 wages to the CPF Board by 16 January 20171.
Employers do not need to apply to receive the WCS payouts. Eligible employers will receive letters from the Inland Revenue Authority of Singapore (IRAS) by March 2017 informing them of the amount of WCS payout they will be given. The payouts will be credited directly into the employers’ bank accounts or issued as cheques to employers.
The WCS forms part of the Transition Support Package announced in Budget 2013. The government extended the WCS for two more years, until 2017, to give businesses more time to adjust to rising wages in the tight labour market.
Under this extended scheme, the Government co-funds 20% of the wage increases given to 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.