Singapore to disburse S$400mil in jobs support payouts to 24,400 employers from Dec 31

More than $28 billion of support will have been disbursed under the Jobs Support Scheme with this payout. - ST FILE

SINGAPORE (The Straits Times/Asia News Network): About 24,400 employers will receive wage support payouts totalling more than S$400 million from Dec 31 under the Jobs Support Scheme (JSS).

These payouts will support the wages of more than 380,000 local employees, the Ministry of Finance and the Inland Revenue Authority of Singapore (Iras) said in a joint statement on Tuesday (Dec 21).

With this payout, more than $28 billion of JSS support will have been disbursed since the introduction of the scheme at the Unity Budget in February 2020.

Employers who have made mandatory Central Provident Fund contributions for their local employees for the months of August to October this year by the stipulated deadlines will qualify to receive the payout.

The December tranche of funds will cover wages from August to October, and includes the enhanced JSS payout for the Covid-19 phase two (heightened alert) and stabilisation phase periods.

Sectors that will receive the enhanced JSS support include food and beverage, gyms and fitness studios, and retail, which were significantly affected during periods of tightened Covid-19 curbs.

The payout for wages paid from Nov 1 will be disbursed in March 2022.

Eligible employers will be notified of their payout amount later this month, and can also log on to myTax Portal to view the electronic copy of their letter.

Employers who have registered for PayNow Corporate as at Dec 27 or have existing Giro arrangements with Iras can expect to receive the JSS payouts from Dec 31.

Other employers will receive their cheques from Jan 14 next year.

About $12 million in payouts for December are withheld from 443 employers, pending review and submission of supporting documents to substantiate their eligibility. This is part of Iras’ anti-gaming efforts, the statement said.

These 443 employers make up about 1.8 per cent of all qualifying employers for the payouts.

Employers will receive their payouts once Iras has verified the authenticity and accuracy of the information submitted. Their payouts will be adjusted or denied if issues are found during the review.

In the statement, the two agencies stressed that it is vital that employers contribute the right amount of CPF for their employees, based on actual wages paid.

This is as employers’ CPF contributions are used to determine the amount of JSS payout.

Those found attempting to abuse the JSS not only will have their payouts denied, but can also be charged under Section 420 of the Penal Code, where they may face up to 10 years’ jail and a fine.

More information on the scheme can be found here.