The move aims to help firms retain employees
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.