Budget 2023: Progressive Wage Credit Scheme to get S$2.4 billion top-up

THE government is raising its co-funding share this year by up to 25 percentage points for the Progressive Wage Credit Scheme (PWCS), which helps employers adjust to the upcoming mandatory wage increases for lower-wage workers.

Under the first tier of support, the PWCS co-funds the wage increases that employers provide to resident lower-wage employees with gross monthly wages of up to S$2,500.

The government co-funding in qualifying year 2023 will be increased from 50 per cent to 75 per cent.

Under the second tier of support, the government provides co-funding for wage increases for employees with gross monthly wages of above S$2,500 and up to S$3,000.

The co-funding will be raised from 30 per cent to 45 per cent this year. All the scheme’s other parameters remain unchanged. The co-funding support will also apply to wage increases given in qualifying year 2022 and sustained in 2023.

The PWCS provides transitional support for employers from 2022 to 2026, and encourages employers to voluntarily raise the wages of their lower-wage employees. The government will top up the scheme by S$2.4 billion to fund the increase in co-funding in 2023.