Budget 2024: Higher co-funding level, income ceiling for Progressive Wage Credit Scheme
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Megan Cheah
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EMPLOYERS will get more support to raise the salaries of lower-income workers, with the co-funding levels and pay ceiling of the Progressive Wage Credit Scheme (PWCS) to be raised, said Finance Minister Lawrence Wong on Friday (Feb 16).
In his Budget 2024 speech in Parliament, Wong, who is also deputy prime minister, noted that employers are concerned with rising business costs.
Introduced in 2022, the PWCS helps employers with costs by co-funding salary increases for lower-wage workers.
The scheme will now be enhanced to provide more support to employers. The government’s co-funding level will be raised this year to a maximum of 50 per cent, from a previous cap of 30 per cent, said Wong.
The wage ceiling for the PWCS will also be raised to S$3,000 in 2025, from S$2,500, in tandem with the increase in the qualifying income cap for the Workfare Income Supplement Scheme.
The PWCS fund will be topped up by S$1 billion to provide for these enhancements, Wong added.
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