Jobs Support Scheme

Singapore Budget 2020

21/04/2020
Jobs Support Scheme

In the Budget 2020 announcement made on 18 February 2020, the Jobs Support Scheme (JSS) was announced as a temporary scheme for 2020 that seeks to help enterprises to retain their local employees during this period of uncertainty.

Under the Resilience Budget announced on 26 March 2020, this JSS has been enhanced as below:

  1. Employers will now receive a 25% cash grant (up from 8%) 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 also be raised to S$4,600 (up from S$3,600) per employee;

  2. The JSS has been extended to cover nine months of wages (up from three months) and the payment for the JSS will be made in two additional tranches.

UPDATE: Further steps have been taken to protect jobs during the period of heightened measures from 7 April 2020 to 1 June 2020 (extended), whereby many firms may not be able to operate or can only operate at a much-reduced level. Therefore, temporary enhancements have been made to the JSS scheme after the Resilience Budget Announcement (i.e. the first enhancement was made in the Solidarity Budget Announcement on 6 April 2020 and the second enhancement on 21 April 2020).

With the temporary enhancements to the JSS scheme, the JSS payout for the month 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.

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 JSS scheme has also been enhanced to cover wages of employees of a company who are also shareholders and directors of the company (shareholder-directors), subject to meeting certain conditions1. This group of employees were initially excluded from the JSS scheme when it was first announced.

The table below illustrates the payment of the enhanced 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

 End October 2020

 

 

 

 

 

 

 

 


  

 

 

 

 

 






In addition to the above, 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
  • Qualifying licensed travel agents
  • Qualifying gated tourist attractions
  • Cruise lines and Cruise terminal operators
  • Purpose-built meetings, Incentives, Conferences and Exhibitions venue operators

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)

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 $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.