Wage Credit Scheme

[phantom_opera]

the Wage Credit Scheme will incentivise employers to raise salaries of their lower-income workers, as the Govt will pay 40% of these salary increases for three years.

=> that means PAP is going to ask SBS, SMRT to give 20% increment to their drivers, other companies like NTUC and other GLCs with large number of low wage workers will see huge increase of salary for next 3y ... then timing very sui sui for election in 2016 .. these SC workers after 3y of huge increment will sure vote PAP liao loh

=> I don't think SMEs will do it

$3.6 billion Wage Credit Scheme quite big leh

Anyway is good for SCs lah

[jbete]

the Wage Credit Scheme will incentivise employers to raise salaries of their lower-income workers, as the Govt will pay 40% of these salary increases for three years.

=> that means PAP is going to ask SBS, SMRT to give 20% increment to their drivers, other companies like NTUC and other GLCs with large number of low wage workers will see huge increase of salary for next 3y ... then timing very sui sui for election in 2016 .. these SC workers after 3y of huge increment will sure vote PAP liao loh

=> I don't think SMEs will do it

$3.6 billion Wage Credit Scheme quite big leh

Anyway is good for SCs lah

Does this new scheme apply to SPR as well?

[phantom_opera]

Does this new scheme apply to SPR as well?

of course no

[newhomes]

Jus wonder is this a loop hole.

For small company or family business, the founder cut his/her own pay, then hire his kins "on paper" and issue salary below 4k, money still flow back his pocket but got the 40% subsidy from govt. furthermore, income tax also kena lesser.

[mcmlxxvi]

I try first give myself allowance increment then let u know ok? Lol

[hopeful]

government is trying to increase wages, in order to support the property market.

[proud owner]

the Wage Credit Scheme will incentivise employers to raise salaries of their lower-income workers, as the Govt will pay 40% of these salary increases for three years.

=> that means PAP is going to ask SBS, SMRT to give 20% increment to their drivers, other companies like NTUC and other GLCs with large number of low wage workers will see huge increase of salary for next 3y ... then timing very sui sui for election in 2016 .. these SC workers after 3y of huge increment will sure vote PAP liao loh

=> I don't think SMEs will do it

$3.6 billion Wage Credit Scheme quite big leh

Anyway is good for SCs lah

bro

how does it work ?

if i now set up a company ...
if a receptionist ..normally earns 2k .. i up her pay to 3k .. govt will subsidize 40pct of that 3k ?

or does it apply to only certain industries ?

where can i find out more ?

thanks in advance

[radha08]

kns those above $4k Per Month do not qualify...

[proud owner]

kns those above $4k Per Month do not qualify...

give them a pay cut...to 3k then raise it to 3.9k

[PN]

bro

how does it work ?

if i now set up a company ...
if a receptionist ..normally earns 2k .. i up her pay to 3k .. govt will subsidize 40pct of that 3k ?

or does it apply to only certain industries ?

where can i find out more ?

thanks in advance

Refer to this link to know how it works
http://www.iras.gov.sg/irasHome/wcs.aspx

[hopeful]

have the government increase the threshold for rental subsidised flat?

I remember an article where a lowly paid worker rejected a salary increase of $50 because then he would pay rental $200 (exceed income threshold) instead of the $80 he is currently paying. so net = +50 - 120 = -70.

And is this part of the shock therapy recommended by Prof Lim? which the govt rejected.

[leesg123]

If you are employer, will you carry on hiring your $4000 receptionist after the wcs ends 3 years later? Or will you sack and reemploy another staff willing to work for $2000?

[leesg123]

I think there should be a clawback clause on the employer to prevent abuse of the wcs.

[phantom_opera]

give them a pay cut...to 3k then raise it to 3.9k

lol .. very clever trick !!!

and mcm ... there is no chance for u:

Owners of companies or businesses are not considered as employees even if he has paid himself CPF contribution.

[mcmlxxvi]

lol .. very clever trick !!!

and mcm ... there is no chance for u:

Owners of companies or businesses are not considered as employees even if he has paid himself CPF contribution.

Yea... just saw that last nite haha

[Shanhz]

If you are employer, will you carry on hiring your $4000 receptionist after the wcs ends 3 years later? Or will you sack and reemploy another staff willing to work for $2000?

problem is, $2k no longer can find leow, becoz work permit freeze

[RCT]

Below $4K then have... KNS.....

[proud owner]

lol .. very clever trick !!!

and mcm ... there is no chance for u:

Owners of companies or businesses are not considered as employees even if he has paid himself CPF contribution.

i dont see any incentives for employer to do so ..

say currently you pay a staff 3k ... you raise it to 4k ... you will get back $400 ... so effectively employer pays 3.6k ...

say no more raise for the next 2 years ... after 3 yrs ... employer no longer get the 40 pct subsidy ... the cost would rise to 4k ...

what next ?

the scheme raises the overall cost ...

[Shanhz]

i dont see any incentives for employer to do so ..

say currently you pay a staff 3k ... you raise it to 4k ... you will get back $400 ... so effectively employer pays 3.6k ...

say no more raise for the next 2 years ... after 3 yrs ... employer no longer get the 40 pct subsidy ... the cost would rise to 4k ...

what next ?

the scheme raises the overall cost ...

this is like the baby bonus.. if you already intend to have, then it will be nice subsidy. if dun intend to have, that little money not gg to push you to have.

[phantom_opera]

it is good for pre-arranged deals for SMRT, SBS, SIA, PSA blah blah Temasek companies lah

[mcmlxxvi]

problem is, $2k no longer can find leow, becoz work permit freeze

Me. I willing receptionist for 2k. I m hard core local.

But hor don't tell me also need to sweep and mop floor and empty trash and make coffee and tea...

Dun wanna steal tea auntie job.

Besides, I am severely allergic to dust and cock(roache)s.

[hopeful]

Me. I willing receptionist for 2k. I m hard core local.

But hor don't tell me also need to sweep and mop floor and empty trash and make coffee and tea...

Dun wanna steal tea auntie job.

Besides, I am severely allergic to dust and cock(roache)s.

ok, i will employ you at 2k. on paper, i will give you 4k. the increment 2k goes to me ok. i will pay your cpf based on 4k, no worries.
also, i will also employ ghost employee like carbuncle at 4k.

wah, my employee expenses so high, my company taxable income sure drop.

[Shanhz]

Me. I willing receptionist for 2k. I m hard core local.

But hor don't tell me also need to sweep and mop floor and empty trash and make coffee and tea...

Dun wanna steal tea auntie job.

Besides, I am severely allergic to dust and cock(roache)s.

nowadays, employees expected to BKL. where got recep only do recep job? my recep make kopi/tea and every other damn thing. shred paper. arrange newspaper. open/mail letters. what else? other than cleaner aunty job, she basically cover everything other small admin thing in the co.

[minority]

nowadays, employees expected to BKL. where got recep only do recep job? my recep make kopi/tea and every other damn thing. shred paper. arrange newspaper. open/mail letters. what else? other than cleaner aunty job, she basically cover everything other small admin thing in the co.

how to want more pay do less job? thats the reality.

I also want to be CEO but everyday only want to do 2 hr email n rest of the day lim kopi n play with my dog. got bo?

[seletar]

nowadays, employees expected to BKL. where got recep only do recep job? my recep make kopi/tea and every other damn thing. shred paper. arrange newspaper. open/mail letters. what else? other than cleaner aunty job, she basically cover everything other small admin thing in the co.

There's no such thing as recep job in my company, usually my staff or myself will answer the phone, make kopi, open mail etc. As a SME owner, I bao kao liao, even spend some weekends to vacuum and clean the office. My staff also pitch in to keep their work area clean. It's not a big deal. If SME owners are not willing to work long hours and do the small things, they should not bother to start a business.

My staff don't mind helping out with these small stuff as it takes little time and effort. Moreover with less staff, I can pay my employees more. My lowest paid employee is $3K and most are paid above $4K which means I don't get to enjoy this Wage Credit Scheme.

One of the smartest thing I did for my business was to buy my FH office properties many years ago because I felt that paying rent is stupid. Now I don't have to deal with crazy rents.

The most important thing for SME should be sales and revenue. My focus has always been to grow my business and the value of my company. So far so good. Maybe after a few more years, I can retire and enjoy the fruits of my labour.

[mcmlxxvi]

ok, i will employ you at 2k. on paper, i will give you 4k. the increment 2k goes to me ok. i will pay your cpf based on 4k, no worries.
also, i will also employ ghost employee like carbuncle at 4k.

wah, my employee expenses so high, my company taxable income sure drop.

Sounds good! If I take on multiple such offers I'd be ghastly well employed lol

[mcmlxxvi]

how to want more pay do less job? thats the reality.

I also want to be CEO but everyday only want to do 2 hr email n rest of the day lim kopi n play with my dog. got bo?

Ha. You'd be surprised how much some can accomplish in 2hrs vs others in 10hrs.

[mcmlxxvi]

There's no such thing as recep job in my company, usually my staff or myself will answer the phone, make kopi, open mail etc. As a SME owner, I bao kao liao, even spend some weekends to vacuum and clean the office. My staff also pitch in to keep their work area clean. It's not a big deal. If SME owners are not willing to work long hours and do the small things, they should not bother to start a business.

My staff don't mind helping out with these small stuff as it takes little time and effort. Moreover with less staff, I can pay my employees more. My lowest paid employee is $3K and most are paid above $4K which means I don't get to enjoy this Wage Credit Scheme.

One of the smartest thing I did for my business was to buy my FH office properties many years ago because I felt that paying rent is stupid. Now I don't have to deal with crazy rents.

The most important thing for SME should be sales and revenue. My focus has always been to grow my business and the value of my company. So far so good. Maybe after a few more years, I can retire and enjoy the fruits of my labour.

Depending on your trade, a nice reception area and professional outsourced cleaning and maintenance may make a whole lotta difference. Esp when customers or investors come by for meetings. Image and branding are often overlooked by small biz owners.