Jobs Support Scheme extended by up to 7 months depending on sector

THE Jobs Support Scheme (JSS) wage subsidy will be extended by up to seven months, covering wages paid up to March 2021, although support levels and durations will vary by sector.

This was announced on Monday by Deputy Prime Minister and Finance Minister Heng Swee Keat in a ministerial statement on the government's continued support amid the Covid-19 pandemic.

Before this extension, the JSS payouts - which co-fund the first S$4,600 of local employees' monthly wages - were meant to cover wages paid up till August this year.

Receiving the most extended aid are firms in the hardest-hit sectors of aerospace, aviation and tourism, which will get support at the 50 per cent level for another seven months.

Also receiving support for seven more months, but at the 30 per cent level, are the arts and entertainment, food services, land transport, marine and offshore, and retail sectors.

In line with the phased resumption of construction activities, the built-environment sector will get 50 per cent wage support for two more months, then a lower level of 30 per cent support for another five months.

The main exceptions to the seven-month duration are "the few sectors that are managing well", said Mr Heng, naming biomedical sciences, financial services and ICT (information and communications technology). These sectors will get support at the 10 per cent level for four more months - in other words, for wages paid up to December 2020.

The large majority of remaining sectors will receive 10 per cent support for the next seven months. The full details will be on the Singapore Budget website.

Since the JSS was announced in Budget 2020, with the first payouts in April, over S$16 billion has been disbursed for over two million employees in more than 150,000 firms.

"However, we cannot sustain the JSS at current levels. It draws heavily on our reserves and risks trapping our workers in unviable businesses. Some sectors are also recovering faster than others," said Mr Heng, explaining the decision to adjust support based on "the projected recovery of different sectors".

With the extension, most businesses will be receiving wage support for 17 months in total since the pandemic began.

"I urge all businesses to make full use of this additional support to retain and upskill your workers, and to transform your operations for the post-Covid-19 world," said Mr Heng.

He encouraged firms that are coping well to return or donate the JSS payouts, noting that nearly 600 firms have already done so and thanking them "for their sense of community".

Businesses can also tap other existing schemes which are available till March 2021, such as the enhanced Enterprise Financing Scheme and Temporary Bridging Loan Programme, he added.