Jobs Support Scheme raised from 10% to 50% for those affected by tighter Covid-19 rules

THE government is increasing wage support for employers in sectors that have been "significantly affected" by tightened Covid-19 measures.

Businesses in sectors where the tightened measures require them to suspend many, if not all, of their operations will get wage support of 50 per cent under the Jobs Support Scheme (JSS) from May 16 to June 13 - the period of tighter restrictions under Phase 2 (Heightened Alert), Finance Minister Lawrence Wong told reporters during a virtual briefing on Friday.

This applies to affected gyms, fitness studios, performing arts organisations and arts education centres. The JSS support will also replace the operating grant for gyms and fitness studios under the Sports Resilience Package.

JSS support will also be enhanced to 30 per cent for sectors that may not be required to suspend operations but are nonetheless significantly affected by the restrictions, said Mr Wong, who also co-chairs Singapore's Covid-19 taskforce.

This group of businesses include the retail sector, affected personal care services, museums, art galleries, historical sites, cinemas, indoor playgrounds and other family entertainment centres.

Supermarkets, convenience stores and online retailers, however, will not be eligible for this enhanced support, he added.

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"I will encourage businesses to make full use of the enhanced JSS to retain and pay their workers during this period and to use the lull period to invest in workers through training and upskilling programmes," said Mr Wong.

He added that other businesses that are significantly affected can appeal for enhanced JSS support at go.gov.sg/jss.

To help businesses with cash flow concerns, Mr Wong said the government will support their rental costs.

The government will provide rental relief to SMEs and eligible non-profit organisations with annual revenue not exceeding S$100 million and who are tenant-occupiers of qualifying commercial properties, according to a statement from the Ministry of Finance (MOF).

For government-owned commercial properties, MOF will grant one month of rental relief for qualifying tenants. This is aligned to the rental waiver for hawker stalls and coffee shops provided during this period of heightened alert.

Meanwhile, some landlords of private commercial property have given rental waivers or rebates to support their tenants during this period. To provide additional support, the Inland Revenue Authority of Singapore will disburse a 0.5-month rental relief cash payout directly to qualifying tenants as part of a new Rental Support Scheme.

As for individuals, the government is introducing a Covid-19 Recovery Grant (Temporary) scheme to provide one-off support for lower- to middle-income employees and self-employed persons who are financially impacted as a result of the tightened measures.

It will provide up to S$700 for applicants with at least one month of involuntary no-pay leave, and up to S$500 for applicants who experienced significant income loss, said Mr Wong.

This support package will cost the government S$800 million and will be funded by a reallocation of spending, with no draw on past reserves, the minister added.