Budget 2020: S$2.4b to help firms defray wage costs
THE government will help companies defray their wage costs through two schemes under a S$4 billion Stabilisation and Support Package unveiled by Deputy Prime Minister and Finance Minister Heng Swee Keat in his Budget speech on Tuesday.
One new measure is the S$1.3 billion Jobs Support Scheme, which Mr Heng said will help enterprises retain the 1.9 million local workers employed here.
For every local worker in employment, the government will offset 8 per cent of wages, up to a monthly cap of S$3,600, for three months.
This sum will be paid to employers by the end of July this year.
Meanwhile, the existing Wage Credit Scheme (WCS), which co-funds wage increases for Singaporean employees earning a gross monthly wage of up to S$4,000, will be enhanced with a top up of S$1.1 billion.
The monthly wage ceiling will be raised to S$5,000 for qualifying wage increases given in 2019 and 2020.