Wage Credit Scheme
The Government will co-fund 40% of wage increases given to Singaporean employees earning a gross monthly wage of up to $4,000 during the three-year period (2013-2015).
- If an employer increases the gross monthly wage of his employee by $200 in 2013 as shown in the illustration, the Government will co-fund 40% of the $200 wage increase (ie $80) which will be paid in 2014, and in the subsequent two years if the increase is sustained.
- If the gross monthly wage is further increased by $300 in 2014 and another $100 in 2015, the Government will co-fund 40% of the further wage increases, i.e. total wage increase of $500 and $600 in 2014 and 2015 respectively, over 2012.
- At the end of three years, the employer would have paid a total of $15,600 more in wages to the employee and the Government would have co-funded $6,240.
Wage Credit Scheme Eligibility
Below are the criteria for them to qualify for co-funding in calendar year 2013.
Employees must be
- A Singapore Citizen;
- Earning a gross monthly wage less than $4,000;
- Employed for at least three months in 2012;
- On employer's payroll for at least 3 months in 2013 (i.e. employer must have paid employee CPF contributions for at least three months in 2013).
- Employers need not submit any application to IRAS.
- All employers, with the exception of entities on the exclusion list (which includes all Government agencies), will automatically qualify if they pay qualifying wage increases to their Singaporean employees.
- The Government reserves the right to disqualify any employer from receiving the Wage Credit.
- Wage increases up to a gross monthly wage level of $4,000 will be co-funded. Wage increases that are sustained in subsequent years will continue to be co-funded until 2015.
- The increase in gross monthly wage must be at least $50 to qualify for co-funding.
- Once an employee's gross monthly wage exceeds $4,000, the portion of the wage increase that brings the gross monthly wage above $4,000 will not be eligible for co-funding.
Wage Credit Scheme Payout Payment
The first payout at end March 2014 is for wage increases given in 2013 over 2012. Employers must pay their employees' CPF contributions for their wages earned in 2012 and 2013 by 14 Jan 2014 in order to be considered.
The second payout will be in March 2015 and the final payout will be in March 2016.
The payouts are taxable in the Year of Assessment when the payouts are received.
The payout amounts may be used to offset any outstanding tax arrears.
Compute your Wage Credit using the WCS calculator*. New!
*The WCS calculator works best with Microsoft Office Excel 2007 or later version.
Compute your Wage Credit using the WCS calculator (Excel 97-2003)*. New!
*The WCS calculator works best with Microsoft Office Excel 97 - 2003 version.
From the last week of March 2014, employers may check their eligibility for the first Wage Credit and to request for the payout breakdown by employees.