Singapore Wage Credit Scheme
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Singapore Wage Credit Scheme

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The Wage Credit Scheme (WCS) is part of the 3-Year Transition Support Package introduced in Budget 2013. Under the WCS, the Government will co-fund 40% of wage increases given to Singaporean employees ...

The Wage Credit Scheme (WCS) is part of the 3-Year Transition Support Package introduced in Budget 2013. Under the WCS, the Government will co-fund 40% of wage increases given to Singaporean employees earning a gross monthly wage of up to $4,000. Wage increases that are given in 2013 to 2015 will be eligible for WCS.

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Singapore Wage Credit Scheme Singapore Wage Credit Scheme Document Transcript

  • WAGE CREDIT SCHEME (WCS)
  • OVERVIEW: WAGE CREDIT SCHEME (WCS) The Wage Credit Scheme (WCS) is part of the 3-Year Transition Support Package introduced in Budget 2013. Under the WCS, the Government will co-fund 40% of wage increases given to Singaporean employees earning a gross monthly wage of up to $4,000. Wage increases that are given in 2013 to 2015 will be eligible for WCS. WCS BENEFITS • If an employer increases the gross monthly wage of his employee by $200 in 2013, the Government will co-fund 40% of the $200 wage increase and for the subsequent two years if the increase is sustained. • If further $200 increases are given in 2014 and 2015, the Government will co-fund 40% of the further wage increasesLast updated on February 28, 2013 Copyright © 2013 Rikvin Pte Ltd
  • OVERVIEW: WAGE CREDIT SCHEME (WCS) GROSS MONTHLY WAGE Gross monthly wage is the total wages paid by the employer to the employee in the calendar year, divided by the number of months in which CPF contributions were made. Total wages paid to an employee is computed from the CPF contributions that the employer makes for the employee in the year. Total wages include basic salary and additional wages such as overtime pay and bonuses, and exclude employer’s CPF contributions.Last updated on February 28, 2013 Copyright © 2013 Rikvin Pte Ltd
  • ELIGIBILITY How to qualify for co-funding in calendar year 2013 Employees must be • Singapore Citizen; • Earns a gross monthly wage less than $4,000; • Was employed for at least three months in 2012; • Is on employer’s payroll for at least 3 months in 2013 (i.e. employer must have paid employee CPF contributions for at least three months in 2013); • Owners of companies or businesses are not considered as employees even if he has paid himself CPF contribution. Qualifying employers • Employers need not submit any application to IRAS. • All employers will automatically be covered under WCS except government-related entities and entities not registered in Singapore. Qualifying wage increases • WCS aims to support productivity gain sharing between employers and employees through meaningful wage increases, especially for lower wage workers. • Once an employee’s gross monthly wage exceeds $4,000, the portion of the wage increase that brings the gross monthly wage above $4,000 will not be eligible for co-funding under WCS. Payment of WCS payout Eligible employers will receive a payout automatically annually. The first payout will be in the second quarter of 2014, and the last payout will be in 2016. The Wage Credit co-funds businesses giving wage increases to their employees and is taxable.Last updated on February 28, 2013 Copyright © 2013 Rikvin Pte Ltd
  • Helpful Links:Company RegistrationSingapore Work VisasBusiness ServicesAccounting ServicesOffshore CompanyRIKVIN PTE LTD20 Cecil Street, #14-01, Equity Plaza, Singapore 049705Main Line : (+65) 6320 1888Fax : (+65) 6438 2436Email : info@rikvin.comWebsite : www.rikvin.comReg No 200100602KEA License No 11C3030This material has been prepared by Rikvin for the exclusiveuse of the party to whom Rikvin delivers this material.This material is for informational purposes only and hasno regard to the specific investment objectives, financialsituation or particular needs of any specific recipient.Where the source of information is obtained from thirdparties, Rikvin is not responsible for, and does not acceptany liability over the content. Copyright © 2013 Rikvin Pte Ltd