Announced in the 2013 Budget, the Wage Credit Scheme (WCS) involves the Government co-funding 40% of salary increases given to Singaporean employees, earning a gross monthly wage of up to $4,000. WCS covers wage increases that are given in 2013 to 2015.
For example:
- If an employer increases the gross monthly salary of his employee by $200 in 2013, the Government will co-fund 40% of the $200 wage increase and for the subsequent two years if the increase is sustained.
- If further $200 increases are given in 2014 and 2015, the Government will co-fund 40% of the further wage increases.
- At the end of three years, the employer will have paid a total of $14,400 more in wages to the employee and the Government would have co-funded $5,760.
Such co-funding of salary increases in Singapore, will cost the Government $3.6 billion over three years.
Amit Puri - Managing Consultant, Sandbox Advisors
Amit is an experienced career, business and HR professional. Previously, he has worked with organisations such as Bain & Company, Morgan Stanley and Citigroup. Amit has advanced degrees/qualifications in Career Counselling, Organisational Psychology & HR, Occupational Psychometrics, Career/Life Coaching & Business.
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