Wage Credit Scheme

The Wage Credit Scheme (WCS), that was first introduced in Budget 2013, encourages employers to share productivity gains with workers by co-funding wage increases of at least S$50 given by the employers to Singapore citizen employees who earned a gross monthly wage of up to S$4,000. The WCS has been enhanced in two ways in this year’s Budget. Firstly, the wage ceiling for co-funding will be raised from S$4,000 to S$5,000 for the years 2019 and 2020. Secondly, the co-funding ratios will be increased from 15% to 20% for the year 2019 and from 10% to 15% for 2020.

The table below summarises the changes:

Scheme	Current WCS as announced in Budget 2018	Extension WCS as announced in Budget 2020
Qualifying Years’	2018, 2019, 2020	2019, 2020
Level of Co-Funding	20% of Qualifying Wage Increases in 2018 15% of qualifying wage increases in 2019 10% of qualifying wage increases in 2020	20% of qualifying wage increases in 2019 15% of qualifying wage increases in 2020
Gross Monthly Wage Ceiling	S$4,000	S$5,000
Qualifying Wage Increases	Increases in gross monthly wage of at least S$50 given to Singaporean employees in the qualifying year, up to a gross monthly wage level of S$4,000, will be co-funded. In addition, increases in gross monthly wage of at least S$50 given in 2017, 2018 and 2019 up to a gross monthly wage level of S$4,000, and sustained in subsequent years of the scheme, will be co-funded.	Increases in gross monthly wage of at least S$50 given to Singaporean employees in the qualifying year, up to a gross monthly wage level of S$5,000, will be co-funded. In addition, increases in gross monthly wage of at least S$50 given in 2017, 2018 and 2019 up to a gross monthly wage level of S$5,000, and sustained in subsequent years of the scheme, will be co-funded.

Singapore Budget 2020