Employers are reminded to make the full CPF contributions for their employees by 14 January 2015, in order to receive the second tranche of Wage Credit Scheme (WCS) payouts in March 2015.
The Government introduced the WCS in 2013 as part of a 3-year Transition Support Package to help businesses cope with rising wage costs in a tight labor 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 businesses to free up resources for investments in productivity, and share the productivity gains with their employees.
To qualify for the second tranche of the WCS payout, employers must fulfill the following conditions:
(a) Have given Singaporean employees a minimum wage increase of at least $50 in 2014; and/or
(b) Have sustained the wage increases (at least $50) previously given to employees in 2013; and
(c) Have paid the employees’ mandatory CPF contributions for 2014 wages to CPF Board by 14 January 20152.
Employers do not need to apply to receive the WCS payouts. Eligible employers will receive letters from the Inland Revenue Authority of Singapore (IRAS) by March 2015 informing them of the amount of WCS payout they will be given. The payouts will be credited directly into the employers’ bank accounts or issued as cheques to employers.
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