Singapore's Jobs Credit Scheme To Be Reviewed

by Mary Swire, Tax-News. com, Hong Kong

24 September 2009

Singapore’s Jobs Credit Scheme will be reviewed by mid-October, but the two further payments due by the end of this year will be made.

It has been announced that more than 100,000 employers, with whom about 1.4m local workers are employed, will receive SGD890m (USD628m) from the third payment of Jobs Credit on September 30, 2009. After being automatically computed, the Jobs Credit will be granted to eligible employers, including those who previously did not qualify for the first and second payments.

Following the September 2009 payment, the fourth payment will be made in December 2009. This fourth payment will be computed on the basis of employees on the Central Provident Fund (CPF) payroll for the month of October 2009. Employers must make their CPF contributions for July to September 2009 for these employees on their October CPF payrolls, in order to qualify for the fourth payment of Jobs Credit.

The Jobs Credit Scheme comprised four payments, with the last payment being in December 2009. At the time of its introduction in the 2009 budget, the government said it would review whether it is necessary to extend the scheme depending on the state of economy.

It has now disclosed that the review is currently ongoing, taking into account all factors including the latest economic and employment outlook for the coming year. The government, it has said, will announce whether the scheme will be extended, and if so in what form, by mid-October.

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