It was first introduced at Budget 2020 and was further enhanced at the Resilience, Solidarity and Fortitude Budgets. Apart from providing cash flow support, the scheme hopes to help businesses retain workers during this period.
Under the Jobs Support Scheme, businesses will receive wage support for the first $4,600 of gross monthly wages paid to their local employees. This includes all your Singapore Citizens and Permanent Resident employees. The wage support lasts for 10 months, until August 2020.
For the months of April and May 2020, all businesses will receive 75% in wage support (capped at the first $4,600 of wages) to tide through the circuit breaker period. This was the latest enhancement from the Solidarity Budget.
For the remaining 8 months, businesses will receive co-funding based on the tier that they belong to, for the first $4,600 of gross monthly wages.
Businesses that are unable to resume operations after the circuit breaker ends will continue to receive 75% wage support for local employees. This support will continue till operations may resume again, or till August 2020, whichever earlier. Should operations resume in the middle of the month, the wage support will be pro-rated accordingly.
Who Qualifies For The Jobs Support Scheme?
Employers who have made CPF contributions for their local employees are eligible for the payout.
Shareholders and/or directors of a company are eligible if they are also salaried employees of the company with Assessable Income of $100,000 or less for the Year of Assessment 2019.
Business owners do not qualify for this payout, including sole proprietors and partners of general partnership, limited liability partnerships and limited partnerships.
Employers trading in their own personal capacity, such as hawkers who do not have UEN, or those hiring local personal drivers or domestic helpers, will not be able to claim wage payout.
Credit to: DollarsAndSense Business