Fortitude Budget: JSS extended for 1 month, aerospace firms to get 75% wage support

ALL firms in Singapore will receive payouts under the Jobs Support Scheme (JSS) for an additional month, until August 2020, to provide more relief as firms safely reopen after the "circuit breaker" period. (see clarification note)

The one-month extension of the JSS duration was announced in Parliament on Tuesday by Deputy Prime Minister and Finance Minister Heng Swee Keat as part of the Fortitude Budget, the fourth round of support measures in response to the Covid-19 pandemic.

The additional month of wage support will be at the same levels as those provided during the non-"circuit breaker" months. It will be computed based on the wages paid in August this year.

Firms will receive the additional month of support in the October 2020 JSS payout.

When the JSS was first announced, it was to cover nine months until October 2020. The amount to be paid was be computed based on wages paid to local employees up to July 2020.

Another enhancement to the JSS announced on Tuesday is for firms that cannot resume operations immediately after the "circuit breaker".

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These firms will receive support for 75 per cent of wages paid until August 2020 or when the businesses are allowed to reopen, whichever is earlier.

Beneficiaries would include retail outlets, gym and fitness studios, and cinemas.

The third enhancement to the scheme is to refine the classification of firms in the different JSS tiers, following feedback from industry associations and businesses.

Firms in sectors that are more severely affected will see higher wage support of either 75 per cent or 50 per cent, up from the previous 25 per cent.

Those in the aerospace sector - including firms involved in maintenance, repair and operations - will now receive 75 per cent wage support under the enhanced JSS.

Firms in the retail as well as marine and offshore sectors will now receive 50 per cent support.

Eligible firms will receive a back-payment to top up their previous JSS payouts to the higher levels. This retrospective payment will be made by July.

For the built environment sector, which includes construction, the wage support will also be raised to 75 per cent.

"This sector will be affected by the phased and gradual resumption of activities," Mr Heng said in Parliament. The 75 per cent support for the built environment sector will only apply to wages paid between June and August this year.

In total, the three enhancements to the JSS will cost S$2.9 billion.

"Through the JSS, we are flowing a total of S$23.5 billion to firms to support wage costs for 10 months," Mr Heng said.

Clarification note: An earlier version of this article stated that payouts will be extended till November 2020. The Ministry of Finance has since clarified that in JSS will be provided for an additional month to cover August 2020 wages.