Temporary working capital

Singapore to increase wage-raising subsidies for lowest-paid workers

This is part of the country’s recently announced S$1.5 billion support package for low-income local workers and businesses.

The Singapore government introduced the PWCS in its 2022 budget to provide transitional wage support to employers to accommodate mandatory wage increases for eligible low-wage workers and to encourage voluntary wage increases. The program allows the Singapore government to support wage increases at specified co-funding levels between 2022 and 2026.

According a press release from the MOFthe government co-funded share of eligible salary increases for resident employees earning up to S$2,500 per month will increase from 50% to 75% in 2022. For salaries above S$2,500 and up to S$3,000 Singapore dollars per month, the co-financed share will increase from 30% to 45%.

The Singapore government will also extend the existing Job Growth Incentive (JGI) for a further six months until March 2023.

In addition, the Singapore government will implement new measures to help businesses deal with higher energy costs. This includes a new energy efficiency grant, which will provide local small and medium-sized enterprises (SMEs) in the restaurant, food manufacturing and retail sectors with up to 70% support for the purchase of energy efficient equipment in pre-approved categories. . The grant will be capped at $30,000 per company.

By the end of September, businesses will also have access to the Temporary Bridging Loan Program to meet their working capital needs. When the scheme expires, the Business Finance Scheme commercial loan will be enhanced and the maximum loan amount will increase from S$5 million to S$10 million from July 1, 2022 to March 31, 2023.

Mayumi Soh of Pinsent Masons MPillay, the Singaporean joint venture between MPillay and Pinsent Masons, said: “These new measures are welcome in the wake of the Covid-19 pandemic. It is hoped that this will go a long way in solving the financial constraints that businesses face, such as rising energy and labor costs, and in facilitating much-needed business and workforce transformation. -work.