Singapore’s government issued its fourth budget for 2020, which includes further measures to address the impact of COVID-19, such as the extension of the Job Support Scheme (JSS) and foreign levy waiver and rebate, incentives to hire Singaporean nationals, new job and training programs, the deferral of increased pension contributions, and a new fund to support certain individuals.
Employers will receive a monthly wage subsidy for up to six months for hiring local workers who have completed certain training programs. Subsidy amounts will be 20% (capped at SG$6,000 for workers under age 40) and 40% (capped at SG$12,000 for workers aged 40 and over).
Foreign worker levy rebates will be extended for up to two months for businesses that weren’t allowed to resume on-site operations after the end of the “circuit breaker.” In June, eligible employers will receive the full levy waiver and a rebate of SG$750, and in July the waiver will be 50% with a rebate of SG$375.
A scheduled increase in CPF contribution rates for older workers will be deferred by one year from 1 Jan 2021, to 1 Jan 2022. The CPF Transition Offset scheme is also deferred until after the CPF higher contribution rates take effect.
The government will fund a COVID-19 support grant that will pay individuals up to SG$800 per month for three months if they have lost their job or been placed on leave without pay, or have had their salaries significantly reduced.
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