Jobs Support Scheme

Singapore Budget 2020

27/05/2020
Jobs Support Scheme

The JSS was announced at Budget 2020, and further enhanced at the Resilience, Solidarity and Fortitude Budgets. The scheme was introduced to provide wage support to employers and help companies to retain their local employees during the period of economic uncertainty.

The following are the key basic features of the JSS:

  1. Employers will receive a 25% cash grant on the gross monthly wages of each local employee for whom mandatory Central Provident Fund (CPF) contributions were made. In addition, the monthly wage capping will be S$4,600 per employee;

  2. The JSS will cover ten months of wages (i.e. October 2019 to December 2019 and February 2020 to August 2020).

The JSS scheme also cover wages of employees of a company who are also shareholders and directors of the company (shareholder-directors), subject to meeting certain conditions1.

Furthermore, it noted that the JSS payout for the months of April 2020 and May 2020 will be raised to provide 75% wage support to all businesses in respect of wages paid in April 2020 and May 2020. The wage support for the other months will remain unchanged as previously announced. The temporary enhancements will be disbursed in April 2020 and May 2020 for the respective month which the wages are paid.

In addition, the 75% wage support is also granted for businesses that are still not permitted to resume operations after the circuit breaker period (which ends on 1 June 2020). This will continue throughout the period for which they are not allowed to resume operations, or until August 2020, whichever is earlier. For employers that are allowed to resume business operations after the circuit breaker period, they will revert to receiving their base tier of support under the JSS.

To facilitate fast disbursement of the JSS payout, the April 2020 wage top-up will first be computed based on wages paid in October 2019 and the May 2020 wage top-up will first be computed based on wages paid in November 2019. Subsequent JSS payouts will be adjusted to account for actual wages paid in April 2020 compared to October 2019 and actual wages paid in May 2020 compared to November 2019.

The table below illustrates the payment of the JSS under various tranches of payout:

 

Quantum of JSS Payout made to the Employer (capped at the first S$4,600 of gross monthly wages) 
Based on:

Timeline for the JSS Payout

Payout 1

+75% of October 2019 Wages

+25% of November 2019 Wages

+25% of December 2019 Wages

April 2020

Additional Payout in
May 2020


+75% of November 2019 Wages            

May 20202 or Early June 2020

Payout 2

+25% of February 2020 Wages

+25% of March 2020 Wages

+(75% of April 2020 Wages - 50% of October 2019 Wages)3

End July 2020
 Payout 3 

+(75% of May 2020 Wages - 75% of November 2019 Wages)4 

+25% of June 2020 Wages

+25% of July 2020 Wages

+25% of August 2020 Wages

 End October 2020

 

 

 

 

 

 

 

 


  

 

 

 

 

 







In addition to the above key basic features of the JSS, for certain sectors of businesses severely affected by the COVID-19 outbreak, the JSS will be increased to provide additional tiers of support of up to 75% instead of 25% (on the first S$4,600 of gross monthly wages per local employee).

Such businesses which are covered under this additional tier of support are shown in the table below:

 

Businesses Supported

Quantum of JSS Payout made to the Employer

Tier 1 - Aviation

  • Airlines
  • Airport ground handlers
  • Airport operators
  • Qualifying licensed hotels
  • Aerospace maintenance, repair and overhaul operators
  • Aerospace manufacturing operators
  • Major suppliers of parts and services for aerospace and manufacturers
  • Airline fleet management service operators
  • Operators providing training for pilots and crews
  • Qualifying licensed travel agents
  • Qualifying gated tourist attractions
  • Cruise lines and Cruise terminal operators
  • Purpose-built meetings, Incentives, Conferences and Exhibitions venue operators
  • MICE and tourism event organisers
  • Money changers 
  • Regional ferry operators
  • IRAS-certified central refund agencies

75% of the first S$4,600 of gross monthly wages per local employee (this includes the 25% base support)

 

 Tier 1 (only for June 2020 to August 2020 wages)  
  • Built Environment contractors 
  • Built Environment consultants
75% of the first S$4,600 of gross monthly wages per local employee (this includes the 25% base support)

Tier 2 – Food Services

  • Licensed food shops and food stalls (including hawker stalls)
  • Qualifying retail outlets
  • Cinema operators 
  • Film distributors 
  • Arts and Culture organisations
  • Rail operators
  • Point-to-Point (P2P) transport operators 
  • Private bus and limousine operators
  • Marine and Offshore

50% of the first S$4,600 of gross monthly wages per local employee (this includes the 25% base support)

75% wage support will be granted for all businesses for wages paid in April 2020 and May 2020

Except for Government organisations (local and foreign) and representative offices, all employers (who have made CPF contributions for their resident Singapore citizen and Permanent resident employees) are eligible for the JSS.  

The grant will be computed based on CPF contribution data. Employers do not need to apply for the JSS and those employers who are eligible for the additional tier of support under the JSS will be informed closer to the date of the first payout.

 


1Apply to companies that were registered on or before 20 April 2020, and for the wages of shareholder-directors with assessable Income of S$100,000 or less for Year of Assessment 2019.

2For employers on PayNow or having GIRO arrangement with the Inland Revenue Authority of Singapore. 

3This adjustment is for the temporary JSS enhancement for the month of April 2020. Any negative quantum for a single employee will be offset from the overall JSS payout for the employer.

4Any negative quantum for a single employee will be offset from the overall JSS payout for the employer.