SINGAPORE - Employers can look forward to the next tranche of Wage Credit Scheme (WCS) payouts in March next year. To qualify, they will have to pay the mandatory Central Provident Fund (CPF) contributions on this year's wages for their qualifying employees to the CPF Board by Jan 14, said the Ministry of Finance and the Inland Revenue Authority of Singapore on Friday (Dec 17). The move is part of the Government's efforts to support businesses in transformation and share productivity gains with workers. More than $2 billion in wage credits have been disbursed to employers during the pandemic so far, said the authorities. This includes the $940 million in WCS payouts to more than 98,000 employers in March this year. To qualify for the upcoming tranche, employers must have given Singapore citizen employees, who earned a gross monthly wage of up to $5,000, a wage increase of at least $50 this year, and/or have sustained the salary rise (at least $50) previously given to employees in 2019 and/or last year. The payouts in March will be credited directly to employers' registered bank accounts through PayNow Corporate or Giro. Employers who have not set up a PayNow Corporate account or registered for Giro are advised to do so by the end of February next year to receive their payouts in March. The WCS, which co-funds wage increases, was introduced in 2013 as a three-year scheme and then extended to 2020. In Budget 2021, it was extended by another year at a co-funding level of 15 per cent to further support wage increments and help companies build up their local workforce and emerge stronger from Covid-19. This followed earlier enhancements to the scheme in 2020's first Unity Budget, when government co-funding of qualifying wage increases in 2019 and 2020 were raised by five percentage points to 20 per cent and 15 per cent respectively. The gross monthly wage ceiling for employees was also raised from $4,000 to $5,000 for both years, enabling more to qualify for the wage credit. More on this topic Related Story Tax collection down by 7.3% last FY; $28.2 billion in grants given out by Iras Related Story In pursuit of resilience: Disasters, disruptions teach us that efficiency alone is not good enough
SINGAPORE - The National Wages Council (NWC) will convene next Monday (April 19) to relook guidelines on wage- and employment-related issues amid the Covid-19 pandemic. In its deliberations, it will take into account the domestic and global economic situations and outlook given the ongoing Covid-19 pandemic, as well as Singapore's pace of recovery, the Ministry of Manpower (MOM) said on Wednesday. The NWC - which is chaired by DBS Bank chairman Peter Seah and comprises representatives from the Government, employers and unions - aims to announce the updated guidelines by the end of next month. The high-level council meets every year to update guidelines on wage and employment matters. Last year, the NWC, in a rare move, reviewed its wage guidelines for a second time as the coronavirus outbreak took its toll on the labour market. It was only the fourth time since being set up in 1972 that the council had been convened twice in the same year. The previous times came amid major economic crises as well - in 2009, 2001 and 1998. More on this topic Related Story Employers may implement temporary wage cuts to save jobs: National Wages Council Related Story askST: Relooking pay guidelines amid Covid-19 - 5 things to know about the National Wages Council
SINGAPORE - By end-March, $940 million in Wage Credit Scheme (WCS) payouts will be disbursed to more than 98,000 employers here, bringing the total amount in wage credits paid out during the pandemic to over $2 billion. In a Facebook post on Thursday (March 18), Deputy Prime Minister and Finance Minister Heng Swee Keat wrote that uplifting workers remains "at the very centre of all that we do", as the Government makes every effort to cope with the pandemic and transform the economy and businesses. "The WCS is one of the ways to uplift our workers, by supporting businesses to provide wage increases to Singaporean workers," he said. The WCS co-funds wage increases. It was introduced in 2013 as a three-year scheme and then extended to 2020 to support businesses in their transformation efforts and encourage sharing of productivity gains with workers. In Budget 2021, it was extended by another year at a co-funding level of 15 per cent, to further support wage increments to help companies build up their local workforce and emerge stronger from Covid-19. This followed earlier enhancements to the scheme in 2020's first Unity Budget, when government co-funding of qualifying wage increases in 2019 and 2020 was raised by five percentage points to 20 per cent and 15 per cent respectively. The gross monthly wage ceiling for employees was also raised from $4,000 to $5,000 for both years, enabling more to qualify for the wage credit. Over $1 billion in wage credits was disbursed to more than 95,000 employers in 2020, for wage increases in 2019. An additional payout was made in June 2020, on top of the yearly payout made in March 2020. In a joint release on Thursday, the Ministry of Finance (MOF) and Inland Revenue Authority of Singapore (Iras) said that through the upcoming payout in March, the Government will co-fund 15 per cent of qualifying wage increases given from 2017 to 2020, to more than 800,000 local employees earning a gross monthly wage of up to $5,000. This will support wage increases and benefit more than 98,000 employers, they said. Mr Heng noted that it is heartening that many employers, despite having to cope with the stresses and strains posed by the pandemic, are continuing to do their part to uplift their workers. "These are uncertain times for many workers and businesses. I encourage employers to continue to make use of this and other schemes to redesign jobs and upskill their workers," he wrote. "By continuing to put the well-being of our workers at the heart of what we do, businesses will build stronger bonds with their workers, and emerge stronger together in a post-pandemic world." Employers do not need to apply to receive the payouts. Eligible employers will receive letters from Iras by March 31 informing them of their payout amount. More on this topic Related Story Wage Credit Scheme payouts to eligible employers to go fully cashless from March 2020 Related Story S'pore firms got $27.4 billion in grants last year, with $17.4 billion approved in loans These will be credited directly to employers' registered bank accounts through PayNow Corporate or Giro. Any appeals regarding WCS payouts must be submitted to Iras by June 30 and will be considered on a case-by-case basis. More information can be found at the Iras website. Iras can also be contacted directly at 1800-352-4727 or by e-mail at wcs@iras.gov.sg.
SINGAPORE - Employers in the food, retail, arts, and construction sectors welcomed the Government's plans to extend wage support for them until June, but many feel it is not enough. Safe management measures and a labour crunch caused by border restrictions mean they will continue to feel the pinch. Hanging on Mr Ivan Heng, the founder and artistic director of home-grown theatre company Wild Rice, said the 10 per cent wage subsidy "does not reflect the dire reality of the situation". The arts scene in Singapore has been battered by the pandemic. Theatre groups, for instance, are still reeling from the closure of theatres for several months last year. Although theatres are now open, shows are still being staged at a loss because safe distancing measures mean that even a sold-out run will have only a fraction of the seats filled. Wild Rice @ Funan, for instance, has been running at less than 25 per cent capacity. "This has a huge impact on ticket revenue. There's also a fatigue for digital offerings. So companies have hardly any means of earning any income," Mr Heng said. He added that in theatres and concert halls, the authorities could consider relaxing safe distancing restrictions. "Compared to the crowds on public transport, malls, markets, restaurants and not forgetting cinemas, do theatres pose such a danger to public?" He said: "Jobs and livelihoods are at stake... If the situation persists, the industry will not recover." Over at the construction industry, firms are resuming Covid-delayed projects but face challenges such as manpower and cash flow issues, supply chain disruptions, as well as rising material and manpower costs. The industry relies heavily on foreign workers, who do not qualify for the JSS. HSL Group's chief executive Charles Quek said while he is glad wage support for local employees would be extended at 10 per cent, till June, he had hoped for more foreign worker levy rebates, which had been given out previously. "The wages for workers - whether it's foreign workers, S pass workers or even local workers - are going up, because of lack of manpower in the industry. Material prices have also shot up, and dormitory and other associated costs have gone up too because of the safe management measures." HSL Group has 17 subsidiaries in South-east Asia, including eight in Singapore. The construction industry relies heavily on foreign workers, who do not qualify for the JSS. PHOTO: ST FILE He noted that productivity of his group is down by at least 20 per cent owing to the manpower shortage and safe management measures, and added that he has also raised workers' wages by 10 to 15 per cent in a bid to retain them. Mr Quek said the group will likely reduce its exposure to long-term, big projects that run into the hundreds of millions. "I think those will be very risky. With an expected continued manpower crunch, I think costs will get higher. There's also the risk of a second wave (of infections). I don't know how many companies would be able to withstand another shock like that." Meanwhile, the Singapore Retailers Association's president R. Dhinakaran said many retailers had hoped for at least 25 per cent wage support, since overheads such as rent in many cases remain the same but sales are still down. Many firms are "aggressively marking down" their goods to get more cash flow to meet these overheads, and this is not sustainable. More on this topic Related Story What is the Jobs Support Scheme? Related Story Some firms fear they won't survive without Jobs Support Scheme, others pin hopes on taking new directions Recovering Food and beverage operators had hoped the JSS would last till the vaccination of Singapore's population was complete, the Restaurant Association of Singapore said. A spokesman noted that sales across the industry are still 50 to 80 per cent of pre-Covid levels, adding that safe management measures had effectively cut seating capacity by 30 to 40 per cent. But the latest wage support would "no doubt help the forward-looking F&B brands who have pivoted their business model to the new normal", such as those that stepped up on online marketing and deliveries, or introduced virtual brands and ready-to-cook products. News of the wage support was a "pleasant surprise" to Foodtech F&B Ventures' chief executive Serene Ang, whose company runs four restaurants and over a dozen kiosks across the island. The cost savings from earlier tranches of wage support had helped the firm to hire more locals and train existing staff. PHOTO: ST FILE She said the cost savings from earlier tranches of wage support had helped the firm to hire more locals and train existing staff. It also increased staff wages. She said: "The whole industry is very thirsty for staff, since foreigners can't come in as freely as before. "A part-time ground service crew member working 36 to 40 hours a week used to be paid $1,500 a month, but I'm now paying up to $1,800 just to keep them there. The Malaysian workers stuck here are in greater demand than ever." Ms Ang is cautious about expanding and said she will think twice about renewing some outlets' leases, especially if the company can secure cheaper rent elsewhere. RAS' spokesman said the shortage of suitable manpower in F&B is a "major constraint that needs to be further addressed". "We hope the Government will continue to monitor and make adjustments to relevant policies if the situation does not improve in spite of higher wages and enhanced working conditions." More on this topic Related Story Wage support helps manufacturing, security, biomed sectors recover Related Story What will happen to some firms when wage subsidies under Jobs Support Scheme end

