Posted on 02 Jan 2019 in Business by QuickHR with 0 Comments
Full Central Provident Fund (CPF) payments should be made by Managers/Superiors/Bosses of Singaporean employees by 14th January 2019 to have the Wage Credit Scheme (WCS) payouts this coming March. This is an important reminder from a joint statement from the Inland Revenue Authority of Singapore (IRAS) and Ministry of Finance (MOF) earlier this week.
To be part of the sixth tranche, employers should have increased their employees’ gross monthly wage by at least $50 within 2018 or maintained.
The previous wage increase of at least $50 from last year. It is also applicable for both cases.
Employers are reminded that there’s no need to apply to receive the WCS payouts. Their respective taxman is responsible in informing them of their eligibility status by next month. If eligible, the payouts will either be credited directly to bank accounts or through issuance of cheques.
There is also a new way of direct crediting for this specific tranche. Employers who are signed up under PayNow Corporate (launched in August) will receive their respective payouts through registered bank accounts. To reinforce easier and more convenient processing, all other employers are encouraged to sign up for them until 14th January 2019.
The WCS started a three-year initiative which spanned from 2013 until 2015 in order to support businesses which aim to encourage sharing productivity gains with their employees. Such initiative is even slated to extend for three more years until 2020 from a recent announcement.
For 2018 specifically, 20 percent of pay increase of Singaporean workers with gross monthly wage of up to $4000 will be co-funded by the Government. The percentage of funding will be reduced to 15 percent in 2019 and down to 10 percent by 2020. Both the IRAS and MOF are on top of the scheme’s implementation. Those who are caught abusing the scheme may face jail time of up to 10 years with corresponding fines.