The Covid 19 has caused great stress to many businesses in Singapore. Furthermore in the month of April and May 2020, the country is in a semi-lock down, with only essential services allowed to operate.

With businesses’ bottom lines stretched, the Singapore Government announced in the February’s Budget 2020 that they will implement the Jobs Support Scheme in order to help businesses cushion the financial impact of this economic downturn.

This is done with the aim that less employees will be furloughed or lay-off.

 

Jobs Support Scheme In A Nutshell

The Government will co-fund the first S$4,600 of gross monthly wages (excluding employer CPF contributions) paid to each local employee for 9 months.

In addition, the scheme was further enhanced that the wage support for April and May 2020 will be topped-up to 75% for all sectors.

 

How Much Wage Support Will Be Provided?

The businesses eligible for wage support will be categorised into 3 tiers, with varying wage support level ranging from 25% to 75%.

Provided below is a list for your reference:

Tier 1 | Aviation and Tourism – 75% of the first S$4,600 gross monthly wage

  • Airlines
  • Airport ground handlers
  • Airport operators
  • Qualifying licensed hotels
  • Qualifying licensed travel agents
  • Qualifying gated tourist attractions
  • Cruise lines and Cruise terminal Operators

Tier 2 | Food Services – 50% of the first S$4,600 gross monthly wage

  • Licensed food shops and food stalls (including hawker stalls)

Tier 3 | All Other Sectors – 25% of the first S$4,600 gross monthly wage

  • All other employers

If you are unsure which tier you are eligible for, you may call the hotline 1800 252 4728 (8am to 5pm, Monday to Friday)

 

Does My Business Qualify For the Jobs Support Scheme?

This scheme applies only to employees who are Singapore Citizens and Permanent Residents.

For employees who are also shareholders and directors of the company, wage support will also be applicable from April 2020. Do note that their assessable income must be S$100,000 or less for year of assessment 2019.

This is also provided the company is registered on or before 20 April 2020 .

 

How Do I Apply For It?

No application is required. IRAS will notify all eligible employers by post. You may refer to the hotline statement above or write in to IRAS if you wish to appeal.

 

When Can I Receive My Payout?

Please refer to the table below for an illustration of the payout timeline. Employers not on PayNow Corporate or without existing GIRO arrangements with IRAS will start to receive their Chequers in early June 2020.

Jobs support scheme payout

 

Like to find out more about the many grants your businesses may be eligible for? Speak to us today!