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Singapore

Government support for business and workers in Singapore

Table of contents
  1.  What government schemes(s) are available in your country to help employers and workers in the current COVID-19 crisis and for how long?
  2. What payments are made under the scheme(s) and how/by whom?
  3. Which employers and employees are covered?
  4. What procedure(s) does an employer have to follow to be able to take advantage of the scheme(s)?
  5. Are there any other important eligibility criteria?
  6. Are employees covered by the scheme(s) protected from dismissal?
Singapore

1. What government schemes(s) are available in your country to help employers and workers in the current COVID-19 crisis and for how long?

The Singapore government has announced the Jobs Support Scheme (“JSS”) whereby the Government will co-fund a percentage of the first SGD 4,600 of gross monthly wages paid to each local employee (i.e. Singapore citizen or Singapore Permanent Resident) for a period of nine months.

2. What payments are made under the scheme(s) and how/by whom?

What payments are made under the schemes, how and by whom?

Wage support for the months of April and May 2020 will be 75% of the first SGD 4,600 of gross monthly salary for each local employee employed in all sectors to support firms. From June 2020, employers in the food service sector and the aviation and tourism sectors will receive the most support, with all other employers (which would include the Company) receiving co-funding support of 25% of the first SGD 4,600 of gross monthly wages.

Employers will receive three main JSS payouts from the Singapore government in April, July, and October 2020, covering wages paid in the months shown in the table below. There will also be an additional payout in May to provide cashflow support for firms during the ‘circuit breaker’ period.

The April 2020 and May 2020 payouts will provide support in advance for April 2020 and May 2020 wages respectively. These advances will first be calculated based on October 2019 and November 2019 wages respectively. The subsequent JSS payouts in July 2020 and October 2020 will be adjusted to account for actual wages paid in April and May 2020 and the advances given.

Payout

When will the Company receive the payout

JSS will cover wages paid in

CPF contributions must be made by the Company by

1st Payout

April 2020

April 2020 (computed based on October 2019 wages)

14 February 2020

Additional Payout

May 2020

May 2020 (computed based on November 2019 wages)

14 February 2020

2nd Payout

July 2020

February to April 2020

31 May 2020

3rd Payout

October 2020

May to July 2020

14 August 2020

3. Which employers and employees are covered?

All employers who have made Central Provident Fund (“CPF”) contributions for their Singapore citizen or Singapore Permanent Resident employees will be covered by the JSS.

The CPF is a comprehensive social security system introduced by the Singapore government to enable Singapore citizens and Singapore Permanent Residents to set aside funds for retirement. The CPF also addresses other important issues such as healthcare, home ownership, family protection and asset enhancement. All employers and Singapore citizen and Singapore Permanent Resident employees have to make mandatory monthly contributions toward the employees’ CPF accounts.

4. What procedure(s) does an employer have to follow to be able to take advantage of the scheme(s)?

Employers have to continue to make CPF contributions on behalf of their Singapore citizen or Singapore Permanent Resident employees.

Employers do not need to apply for the JSS. The Inland Revenue Authority of Singapore (IRAS) will notify eligible employers by post of the tier of support and the amount of JSS payout receivable by them.

5. Are there any other important eligibility criteria?

N/A

6. Are employees covered by the scheme(s) protected from dismissal?

There are no specific provisions for this under the JSS.

However, as the JSS only relates to Singapore citizen or Singapore Permanent Resident employees for whom employers make CPF contributions, this assumes that the employees must remain under the employment of the employer in order for the employer to benefit from the payouts made under the JSS.