The Jobs Support Scheme (JSS) was first introduced in February 2020 to increase resilience in local businesses and provide stability to the economy. The main goal was to help employers retain local employees through wage subsidies during the tough economic climate caused by the coronavirus pandemic. Under the initial introduction of the JSS, the Government would co-fund up to 75% of the first SG$4,600 of monthly wages per local employee.
Source: https://www.iras.gov.sg/
Wage Subsidies Under JSS Extended by 6 Months! Here’s What You Need to Know:
As part of the 2021 Budget Covid-19 Resilience Package announced on February 16 2021, the JSS will be extended for a further 6 months for the most severely affected enterprises. The JSS which was due to end after March 2021, will now be extended by another 6 months to cover the April to September 2021 period. However, only businesses in the Tier 1 and Tier 2 category will receive support, meaning Tier 3 sector companies will not receive JSS support.
Tier 1, which includes the worst affected sectors, will receive the full six-month JSS extension support with subsidies covering 30% of employee wages from April to June 2021, and then 10% from July to September 2021. Businesses in the Aviation, Aerospace, and Tourism Sectors will be considered Tier 1.
Tier 2 includes Retail, Food Services, Arts & Culture, Marine & Offshore, and Built Environment sector companies will receive 10% employee wage subsidy support from April to June 2021, they will not receive any subsidies for the July to September period.
Like previously, the subsidy will apply only to the first SG$4,600 of gross monthly wages for each local employee (Local employee defined as Singapore Citizens and Permanent Residents). Employers that are not eligible but believe they should be in Tier 1 or Tier 2 of the JSS, can submit an appeal.
Payout 6 Example Based on April to June 2021 Period (1st 3 Months of Extension Period):
Payout 7 Example Based on July to September 2021 Period (Final 3 Months of Extension Period):
When Will Employers Receive the JSS Payout?
The payout for the JSS will be given in 7 stages:
• Tier 3 businesses not entitled to Payout 6
• Tier 2 & 3 businesses not entitled to Payout 7
Source: https://www.iras.gov.sg/
* This information is intended to be a general guide, for more details please visit the government website or to see if your business is eligible for the JSS subsidy contact our professional team now!
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