facebookSingapore Budget 2021: Jobs Support Scheme Extended For Worst-Hit Sectors
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Singapore Budget 2021: Jobs Support Scheme Extended For Worst-Hit Sectors

profileKenneth Fong
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What Is the Jobs Support Scheme (JSS)?

The Jobs Support Scheme (JSS) helps to retain jobs by subsidising salaries for employees working in sectors hard-hit by the COVID-19 pandemic.

Basically, the Government will co-fund a percentage of your gross monthly wages and help businesses retain local workers.

FYI: your gross monthly wage is the amount you get before deduction of employee CPF contribution and personal income tax

The JSS was first introduced during Budget 2020 and has been extended after the announcement of each additional budget, in order to cover wages up to March 2021 for most sectors.

For sectors which are managing well, the JSS will have ended in December 2020.

With the latest Budget 2021, the scheme will see its fourth extension and will cost the Government another $700 million to co-fund between 10 to 30 per cent of wages up to September 2021 instead.


TL;DR: Here’s What You Need to Know About the Jobs Support Scheme

Under Budget 2021, here’s how much JSS wage support your employer will receive:

Jobs Support Scheme TierFirst JSS
(Oct 2019 to Aug 2020)
Extended JSS
(Sep to Dec 2020)
Extended JSS
(Jan to Mar 2021)
Extended JSS
(Apr to Jun 2021)
Extended JSS
(Jul to Sep 2021)
Tier 175%50%30%10%
Tier 250%30%10%0%
Tier 3A25%10%0%
Tier 3B25%10%0%0%

The level and duration of support your employer receives will depend on the sector, which they operate.


Which Tier Do I Belong To And How Much Jobs Support Scheme Wage Support Do I Get?

Businesses are tiered according to how hard-hit they are by COVID-19.

So the level and duration of support your employer receives depend on the sector, which they operate.

Under Budget 2021, here’s how much JSS wage support your employer will get at the following tiers.

Tier 1 Sectors (aviation, aerospace, tourism)

You will receive 30 per cent wage support from April to June 2021.

And 10 per cent wage support from July to September 2021.

Tier 2 Sectors (retail, arts and culture, food services, built environment)

You will receive 10 per cent wage support from April to June 2021.

Tier 3A Sectors (all other employers with the exception of selected Tier 3 sectors)

No change for firms in Tier 3A sectors as they are generally recovering.

The JSS will cover 10 per cent of wages up to March 2021 as previously announced.

Note: if you’d like to find out more about the specific industries in the various tiers, you can refer to this

Who Qualifies for the Jobs Support Scheme?

All employers who have made CPF contributions for their resident employees (Singapore Citizen and Permanent Resident) will qualify for the JSS.

Employees who are shareholders and directors of a company will also be covered if they are also salaried employees of the company and have an assessable income of $100,000 or less for the Year of Assessment of 2019.

Business owners, including sole proprietors and partners of general partnership, limited liability partnerships and limited partnerships, are not eligible.

Employers who trade in their own capacity — such as hawkers or those hiring personal drivers and domestic helpers — who do not have UEN, are also not eligible.

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.

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It’s your livelihood that’s at stake.

So if your employer is unsure whether the business qualifies for the JSS…

Let them know that they can check their JSS Employer Eligibility to see whether they qualify and how much JSS wage support they can get!

How To Apply For The Jobs Support Scheme?

As an employee, you can’t “apply for JSS”.

Because it’s not like you’re actually getting extra money with this scheme.

The JSS is meant to help your employers retain you as an employee and continue to pay you a baseline monthly salary.

Your employers do NOT need to apply for it either.

As long as your employer makes CPF contributions for you.

IRAS will notify them via post of the tier which their business belongs to as well as how much JSS wage support they will receive.

When Will We Receive The JSS Wage Support?

If you are eligible in 2021, your employer will receive 3 main payouts in March 2021, June 2021, and September 2021.

The JSS payouts will be credited via the following means (in order of priority):

  1. Credited to the employers’ GIRO bank account used for Income Tax or GST
  2. Credited to the employers’ bank account registered with PayNow Corporate (if they don’t have a GIRO bank account)
  3. Paid out via cheque

How Is The Jobs Support Scheme Wage Support Computed?

The JSS wage support payouts are computed based on past wages.

For the first payout in 2021, IRAS will compute the amount based on wages paid from September to December 2020.

Here’s how the IRAS will compute the payout for the 2021 JSS wage support payouts:

Jobs Support Scheme Payout for 2021Month of PayoutPayout Computed Based on Wages Paid InWages derived based on mandatory CPF contributions paid on or before
Payout 1March 2021September to December 202014 January 2021
Payout 2June 2021January to March 202114 April 2021
Payout 3September 2021April to to June 202114 July 2021

MOM Guidelines For Salary and Leave Arrangements

Okay.

PAY ATTENTION HERE.

Besides the Jobs Support Scheme, MOM has a few guidelines for employers too.

This is their recommended salary arrangement:

MOM Recommended Salary ArrangementsGross monthly salary
(up to $4,600)
Gross monthly salary
(more than $4,600)
Employer assigns work to employee to completeContinue to pay prevailing salaries including employer's CPF contributionsUse JSS payout to provide baseline monthly salary including employer's CPF contributions

AND

Provide for work done on a pro rata basis (subject to a cap of employee's prevailing salary)
Employer does not assign work to employeeUse JSS payout to provide baseline monthly salary including employer's CPF contributions

If there is any shortfall in your salary after implementing the above-recommended salary arrangements, your employer should consider the following measures:

  • Send you for training courses approved for Absentee Payroll Funding so that overall salary paid during the training period is mostly supported by the Government
  • Apply for Flexible Work Schedule which allows “time banking” of additional salary payments to offset overtime payments in the future
  • Grant additional paid leave
  • Allow you to consume your existing leave entitlements

Where possible, your employer should also allow and support you to take on a second job (part-time or temporary) in other companies or agencies that are still operating.

This will allow you to make up for your loss of income and help make your life easier during this COVID-19 pandemic.

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