Wage Credit Scheme
Launched in Budget 2013, WCS or Wage Credit Scheme is originated from Three-Year Transitional Support Package. According to this scheme, 40% of increments in wages of employees who are Singapore citizens whose gross wage is not above $4000 per month will be co-sponsored by the Singapore Government. Increments in wages between 2013 and 2015 shall be applicable for Wage Credit Scheme.
THE BENEFITS OF WAGE CREDIT SCHEME
Under WCS scheme, if a company raises the gross wage of any worker by S$200 per month in 2013, Singapore Government shall co-sponsor about 40% of the amount of increased monthly wage for two subsequent years if this increment is continued.
Between 2014 and 2015, if employer increases their employee’s salary by $200 again, government shall again co-sponsor 40% of the amount of increment that means $400 and $600 will be the total increase in wage between the two subsequent years respectively.
By the ending of 3rd year, if company has paid wages of $14,400 extra, the government would have been co-sponsored the wages of $5,760 to the employees.
GROSS MONTHLY WAGE
It is the sum total of wages that employer pays to their worker over the consequent calendar year. It is then divided by the total of months during which employee’s contribution to CPF made. CPF Contributions are the resource to calculate the total employee’s wages paid by the employer over the calendar year. In calculation of total wages, basic salary and extra wages like bonuses and overtime pay are included and employers’ contribution to CPF are excluded.
How a company or employer can qualify for co-funding in calendar year 2013
|Employees must be||
|Qualifying wage increases||
HOW WCS PAYOUT IS PAID
Employers who are eligible for co-funding will be entitled to obtain annual payout automatically. First payout shall be transferred in 2014 second quarter, and last one shall be made in 2016.
The co-funding of Wage Credit for wage increases given by the employers is taxable.