To help firms retain their workers amid Singapore’s worst recession since independence, over $5.5 billion will be paid out to more than 140,000 employers under the Jobs Support Scheme (JSS) from Oct 29.
It will help businesses pay the wages of about 1.9 million local employees, the Ministry of Finance (MOF) said yesterday in a joint statement with the Inland Revenue Authority of Singapore (Iras).
This is the third round of payouts this year, bringing the total amount disbursed under the scheme to over $21.5 billion. The next payout is due in March.
Introduced in the first Budget support package in February and enhanced in successive packages, the wage subsidy applies to the first $4,600 of gross monthly wages paid to each Singaporean or permanent resident employee.
The scheme was recently extended to cover wages paid up to March next year for firms in harder-hit sectors, and up to December this year for sectors which are managing well.
Posting on Facebook yesterday, Deputy Prime Minister Heng Swee Keat urged all employers to do their best to retain their workers during this difficult period.
“Jobs remain a key priority as we continue to support our workers and businesses through this crisis,” he said. “For businesses that continue to grow, we also have the Jobs Growth Incentive to encourage the hiring of local workers, especially those in their middle age.”
Mr Heng, who is also Finance Minister, had said in August that retrenchments will be inevitable despite the Government’s best efforts.
His latest post also comes on the back of the National Wages Council last week giving employers the go-ahead to implement temporary wage cuts, if it means saving jobs. It advised them to make only the reductions that were necessary to minimise retrenchments.
MOF and Iras said yesterday that this month’s JSS payment goes towards supporting wages paid to local workers from June to August, with employers in the aviation, tourism and built environment sectors getting the top tier of 75 per cent support.
Firms in industries that were not allowed to resume on-site operations after the circuit breaker, which ended on June 1, will have their support levels topped up to 75 per cent for the period that they were not allowed to resume operations.
Businesses that benefited from the scheme said they appreciated the support.
Mr Lim Chee Kean, chief executive of Internet of Things solutions provider Ascent Solutions, said many of the firm’s overseas projects were grounded due to the pandemic. “JSS offered us support to retain critical jobs, as employees were unable to travel to undertake international projects,” he said.
Some felt the scheme must now target those that need the most help.
Singapore Business Federation chief executive Ho Meng Kit said that due to ongoing travel restrictions, more support, such as an extension of the JSS beyond March next year, may still be needed to keep businesses in the aviation and tourism sectors afloat.
“Conversely… businesses in sectors such as F&B and retail may recover at a faster pace when domestic demand picks up as more economic activities resume. Likewise, manufacturing may also see optimistic signs as global demand gradually recovers,” he said.
Meanwhile, OCBC Bank head of treasury research and strategy Selena Ling is keeping an eye on how the economy evolves from now until March next year. “The key is… if businesses on the ground can cope in the interim.”
Eligible employers will be notified by post of their payout amount, and can also log on to the myTax Portal to view the electronic copy of the letter.
Those with PayNow Corporate or Giro arrangements with Iras can expect their payouts from Oct 29. Others will receive cheques from Nov 4, but can receive their payouts earlier if they sign up for PayNow Corporate with their banks by Friday.
Iras and the MOF also warned of severe penalties for attempts to abuse the JSS.