Payroll & Compliance – Important Legislative Updates in Q2 – Singapore
ADP Quarterly Chronicle – April to June 2020
Fortitude Budget issued by the government of Singapore
Government of Singapore in May 2020 released “Fortitude Budget” to help businesses and individuals adapt and build resilience, amid the COVID-19 pandemic.
Below are the highlights of budget:
Enhancements to Jobs Support Scheme (JSS)
- The said scheme has been extended for one more month to cover wages up to August 2020.
- Under the scheme, for all firms that are not allowed to resume operations, Government will continue providing wage support at 75% up to August 2020 or when allowed to reopen, whichever is earlier.
- Increased support for some affected sectors (e.g. aerospace, retail, marine and offshore) from 25% to 50% or 75%
- Hiring Incentive would be paid for employers that hires local workers who have completed eligible traineeship and training programmes
- The incentive programme would be as below:
Foreign Worker Levy Waiver & Rebate
- The rebate has been extended further by up to two months for businesses that are not allowed to resume operations after the circuit breaker. The rebate would be provided at:
- 100% waiver and $750 rebate in June 2020
- 50% waiver and $375 rebate in July 2020
From August 2020, firms in these sectors will receive a 90 SGD FWL rebate monthly for each Work Permit Holder, until December 2021. Closer to December 2021, the government will decide if there is a need to further extend the FWL rebate by another year to December 2022.
Deferment of Higher CPF Contribution Rates
- The rule of increased in CPF contribution rates for senior workers is deferred by one year and now would be applicable from 1 January 2022.
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