Deputy Prime Minister and Finance Minister, Heng Swee
Keat, announced the third round of support measures called “Solidarity Budget”
which follows the Unity Budget announced on 18 February 2020 and the Resilience
Budget of 26 March 2020 to help tide businesses, workers and households through
the COVID-19 outbreak. Singapore will implement heightened safe-distancing
measures from 7 April to 4 May 2020. An additional S$5.1b will be mobilised to
see Singaporeans and businesses through this period. The following are the
highlights of the speech.
Enhanced Jobs Support Scheme (JSS)
• The Government will raise its wage
subsidy for all firms to 75% of gross monthly wages, for the first S$4,600 of
wages paid in April 2020, for each employee. Regardless of how much they earn,
the maximum subsidy to the firms will be 75% of S$4,600 per person, which is S$3,450.
In the Resilience Budget, the wage subsidy offered ranged from 25% to 75% for a
few sectors (75% wage support for aviation and tourism sectors; 50% for the
food services sector, and 25% for all other sectors).
• First JSS
payout will be brought forward from May 2020 to April 2020.
Self-Employed Person (SEP) Income Relief Scheme (SIRS)
• About 100,000 SEPs will benefit from
SIRS.
• Extend SIRS
to automatically include self-employed persons who also earn a small income
from employment work. Self-employed persons are a very diverse group. Some are
own-account workers, like taxi drivers, who engage in a trade or business but
do not employ any paid workers. Others are sole proprietors, who own small
businesses that have employees and a network of business relations.
• Raise the
annual value of property threshold from S$13,000 to up to S$21,000. This will
include those who live in some condominiums and other private properties.
• Eligible SEPs
will receive three quarterly cash payouts of S$3,000 each in May, July and
October 2020.
• Other
criteria remain unchanged.
Further measures to ease labour costs
• Waiver of monthly Foreign Worker Levy
(FWL) due in April 2020 to help firms with cash flow.
• FWL rebate of
S$750 in April 2020 from levies paid in 2020, for each Work Permit or S Pass
holder.
Laws to ensure property owners pass on property tax
rebate to tenants
• A Bill will be introduced to let
businesses and individuals defer certain contractual obligations such as paying
rent, repaying loans or completing work for a period. The Bill will also ensure
that property owners pass on the property tax rebate in full to tenants.
Rental waiver
• One-month rental waiver for office,
commercial and agriculture tenants of government agencies
• Stall owners
in NEA hawker centres will continue to enjoy three months of rental waivers,
while commercial tenants will continue to receive two months of rental waivers.
More finance support for enterprises
• The Government’s risk share raised
from 80% to 90% for EFS Trade Loan, EFS-SME Working Capital Loan and Temporary
Bridging Loan Programme and applies to loans initiated from 8 April 2020 till
31 March 2021.
Cash payments for Singaporeans
• All Singaporeans aged 21 and above
will receive a one-off payout of S$600 in April 2020
• S$300 from
enhanced Care and Support — Cash payout will be made in April 2020
• Additional
and enhanced cash amounts for all Singaporeans aged 21 and above in 2020 as per
the following.
Assessable Income for YA2019
|
Additional + Enhanced Cash Payments
|
Total Cash Payment
|
Payment in April 2020
|
Payment in June 2020
|
Not more than $28k
|
$300 + $900
|
$1,200
|
$600
|
$600
|
Above $28k to $100k
|
$300 + $600
|
$900
|
$600
|
$300
|
>$100k
or owns more than 1 property
|
$300 + $300
|
$600
|
$600
|
−
|
• The S$100 Passion Card Top-up in cash for Singaporeans aged
50 and above this year has also been brought forward to June.
• The S$300 payout for each parent with at least one child aged 20 and below had been brought forward to June.
• The S$300 payout for each parent with at least one child aged 20 and below had been brought forward to June.
(Note: For further information about our Asia Pacific Employment Law and Singapore Employment Handbook Service subscription, contact us at contact us at sg-sales@wolterskluwer.com (Singapore)).
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