Monday, 25 February 2013

Singapore Budget 2013: Govt to co-fund wage increases for SG workers

25th February 2013

DPM and Finance Minister Tharman Shanmugaratnam announced a new Wage Credit Scheme (WCS) in Parliament today (25 Feb). The scheme is part of a three-year Transition Support Package to help Singapore businesses restructure. The scheme will provide more help to companies to enable them to pay their employees more.

Essentially, the scheme co-fund 40% of wage increases for those Singaporean employees who earn up to $4,000 in gross monthly wage.

The wage credits will automatically be paid out to employers annually.

The scheme is said to cost the government about $3.6 billion over the next three years.
Mr Tharman said the scheme will serve as an incentive for companies to share their productivity gains with workers.

He also indicated that training for Singaporean workers will be boosted at all levels of the workforce.

The Workfare Training Support scheme will be enhanced for lower-wage workers.

An SME Talent Programme will be launched to encourage students of polytechnics and institutes of technical education to work for small and medium enterprises.

Companies will also have easier access to government support schemes.

Mr Tharman said these enhancements will cost the government about $500 million over three years.

Source: TRE website

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