The Wage Credit Scheme (WCS), that was first introduced in Budget 2013, encourages employers to share productivity gains with workers by co-funding wage increases of at least S$50 given by the employers to Singapore citizen employees who earned a gross monthly wage of up to S$4,000. The WCS has been enhanced in two ways in this year’s Budget. Firstly, the wage ceiling for co-funding will be raised from S$4,000 to S$5,000 for the years 2019 and 2020. Secondly, the co-funding ratios will be increased from 15% to 20% for the year 2019 and from 10% to 15% for 2020.
The table below summarises the changes:
|
Scheme
|
Current WCS
as announced in
Budget 2018
|
Extension WCS
as announced in
Budget 2020
|
|
Qualifying Years’
|
2018, 2019, 2020
|
2019, 2020
|
|
Level of
Co-Funding
|
- 20% of Qualifying Wage Increases in 2018
- 15% of qualifying wage increases in 2019
- 10% of qualifying wage increases in 2020
|
- 20% of qualifying wage increases in 2019
- 15% of qualifying wage increases in 2020
|
|
Gross Monthly Wage Ceiling
|
S$4,000
|
S$5,000
|
|
Qualifying Wage Increases
|
- Increases in gross monthly wage of at least S$50 given to Singaporean employees in the qualifying year, up to a gross monthly wage level of S$4,000, will be co-funded.
- In addition, increases in gross monthly wage of at least S$50 given in 2017, 2018 and 2019 up to a gross monthly wage level of S$4,000, and sustained in subsequent years of the scheme, will be co-funded.
|
- Increases in gross monthly wage of at least S$50 given to Singaporean employees in the qualifying year, up to a gross monthly wage level of S$5,000, will be co-funded.
- In addition, increases in gross monthly wage of at least S$50 given in 2017, 2018 and 2019 up to a gross monthly wage level of S$5,000, and sustained in subsequent years of the scheme, will be co-funded.
|
