Unlike many other states, there is no minimum wage in Singapore. Instead, the wages are negotiated with the employing company. However, the country opted for a workfare scheme. An accountant in Singapore can provide further details on how this scheme is applied in the city-state.
Foreign investors who want to set up companies in Singapore can benefit from various incentives, while the government support employees to keep their jobs. Below, our accountants in Singapore explain how the workforce scheme works.
What is the workfare scheme in Singapore?
The workfare scheme in Singapore is considered commonly the income supplement offered to low-income employees as a means of encouraging them to keep working in the city-state. Furthermore, it is the quintessence of the concept according to which work is the most appropriate form of social assistance. Workers who can perform a job and gain a wage which is sufficient to support themselves and their families should be assisted.
Workfare in Singapore is addressed to individuals who earn a lower salary and work on a regular basis or go to trainings, or both, and to those employers who send their workers paid with lower salaries to trainings.
Eligible candidates for workfare in Singapore can obtain:
- A cash supplement to satisfy needs for short-term expenses;
- A Central Provident Fund (CPF) portion to put aside retirement savings. Our accountants in Singapore can provide more details on this matter;
- Subsidies when going to training to improve and enforce their skills in order to increase the possibility of being employed in a better position.
Eligibility criteria for the workfare in Singapore
The eligibility criteria for the workfare in Singapore for the work year 2016 are as follows:
- Citizenship of Singapore;
- Be 35 years of age or older;
- Gain an average gross income per month of maximum $ 1,900;
- Be living in a real estate with a Yearly Value (YV) of maximum $ 13,000, based on the address declared to the responsible authorities;
- Not to be owner of more than one pieces of real estate; If married:
- The candidate and his or her spouse commonly must not own more than one pieces of real estate; and
- The assessable income of the candidate’s spouse must not be in excess of $ 70,000 for Year of Assessment 2015;
- Workers must have been employed for minimum two months out of any three months period of 2016; Self-employed individuals should have declared their net trade revenue for work performed in 2016 and effectuated the appropriate Medisave contributions.
Our accounting firm in Singapore can assist you will all the taxation aspects in the city-state. We invite you to contact us for assistance, as well as further information on the workfare scheme in Singapore.