With COVID-19 landing businesses in a harrowing situation, the Singapore Government has stepped up their support to lend a helping hand. Since February 2020, over $25 billion has been committed to effectuate the “Job Support Scheme”, all of which has cushioned the financial blow for more than 150,000 employers thus far. It has mainly subsidised between 25% and 75% of wages paid for a span of 10 months.
On February 16 2021, Deputy Prime Minister of Singapore, Mr Heng Swee Keat, announced the extension of the Job Support Scheme. Singapore will be dedicating an additional $700 million for the Job Support Scheme in 2021 to continue its support for affected businesses. Depending on which tiers of sector your business falls under, there will be varying levels of coverage.
Up till 21 June 2021, the Enhanced Job Support Scheme covers the following:
|Tier 1 Sectors||50% of the first $4,600 of gross monthly wages per local employee|
|Tier 2 Sectors||30% of the first $4,600of gross monthly wages per local employee|
|Tier 3A Sectors||10% of the first $4,600 of gross monthly wages per local employee|
|Tier 3B Sectors||No subsidy|
However, from 21 June 2021 to 30 June 2021, in light of shifting back to Phase 3 restrictions, all sectors with enhanced JSS support will receive 10% of the first $4,600 of gross monthly wages per local employee.
Aside from employers, there are also ongoing schemes to support jobseekers in the midst of the depressed job market. The target for 2021 is to support the hiring of 200,000 locals and provide up to 35,000 traineeship opportunities. $5.4billion out of the $11billion COVID-19 Resilience Package will be forked out for the extension of specific measures under the SGUnited Jobs and Skills Package. Essentially, this is Singapore’s efforts in encouraging companies to continue hiring locals by providing extended wage support up to 12 months. Companies hiring mature workers, persons with disabilities will receive up to 18 months of wage support.
For more specific information about the classification of sector tiers for employers and payout dates, refer to https://www.iras.gov.sg/irashome/schemes/businesses/jobs-support-scheme–JSS-/.
This article is written with reference from:
IRAS. “IRAS | Jobs Support Scheme (JSS).” Iras.gov.sg, 2021, www.iras.gov.sg/irashome/schemes/businesses/jobs-support-scheme–JSS-/. Accessed 21 June 2021.
Priya Sunil. “Singapore Budget 2021: Key Highlights for HR and Employers.” Humanresourcesonline.net, 17 Feb. 2021, www.humanresourcesonline.net/singapore-budget-2021-key-highlights-for-hr-and-employers. Accessed 21 June 2021.