Budget 2020: New schemes to support wage increases

The move aims to help firms retain employees

Budget 2020: New schemes to support wage increases

In today’s Budget 2020 announcement, Singapore’s finance minister revealed two schemes to help employers cope with increasing wages and retain workers.

Firstly, a new Jobs Support Scheme will help employers offset 8% of wages of each Singaporean and permanent resident employee for up to three months, with a monthly cap of $3,600 per staff.

Payment will be given to employers by end of July 2020.

Secondly, the government will increase co-funding of wage raises through the existing Wage Credit Scheme.

The government will now co-fund wage jumps for employees who earn up to $5,000 monthly. The figure used to be set at $4,000.

“To help workers stay employed, I will support enterprises by defraying their wages cost,“ said Deputy Prime Minister and Finance Minister Heng Swee Keat.

Related stories

Free newsletter

Our daily newsletter is FREE and keeps you up-to-date with the world of HR. Please complete the form below and click on subscribe for daily newsletters from HRD Asia.

Recent articles & video

How has HR's transformation strategies changed?

VR will soon be as common as the smartphone

What's the most effective COVID-19 communications?

How has COVID-19 affected employee well-being?

Most Read Articles

Work from home policy: MOM reveals penalties

Singapore announces 'Solidarity' Budget amid COVID-19

Circuit Breaker: MOM advises against 'prolonged' no-pay leave