Employers of eligible Singaporean employees who wish to receive the third tranche of Wage Credit Scheme (WCS) payouts in March 2016 should make the full CPF contributions for these employees by 14 January 2016.
According to a press release by the Ministry of Finance, eligible employers will receive letters from the Inland Revenue Authority of Singapore (IRAS) by March 2016. An application to receive the WCS payouts is not necessary.
The payouts will be credited directly into the employers’ bank accounts or issued as cheques to employers.
In order to be eligible for the third tranche of the WCS payout, employers must have given Singaporean employees a wage increase of at least $50 in 2015 and/or have sustained the wage increases (of at least $50) given to these employees in the past two years.
Employers are also required to have paid their employees’ mandatory CPF contributions for 2015 wages to CPF Board by 14 January 2016.
As part of the Transition Support Package announced in Budget 2013 to help businesses cope with rising wage costs in a tight labour market, the WCS co-funds 40% of the wage increases given to Singaporean employees earning a gross monthly wage of $4,000 and below.
This allows companies to free up resources for investments in productivity, and share the productivity gains with their employees. The WCS has been extended for two more years (2016 to 2017) to give businesses more time to adjust to rising wages.