Singapore Jobs Support Scheme extended till September 2021, with more than SGD 3 billion payouts from 30 March 2021
During the COVID-19 economic instability, the JSS offers wage assistance to Singapore businesses to retain local employees, Singapore Citizens and Permanent Residents.
This JSS announced in the Budget 2020 on 18 February 2020, is intended to help employers subsidise their workers’ wages and retain their jobs.
Employers must use the payout wisely and responsibly. They must follow the MOM tripartite advisory on compensation and leave arrangements.
If there were evidence of irresponsible and unjust treatment, the employers would not receive JSS support payout, and their work pass privileges will be revoked.
Update on the March 2021 JSS Payout
Eligible employers will receive the March 2021 JSS payout on and after 30 March 2021.
Singapore companies with existing GIRO arrangement with IRAS or is using PayNow Corporate, will receive the JSS payout in their bank account on and after 30 March 2021.
Companies that do not have the above arrangements will receive the JSS payout via a cheque from 5 April 2021. The cheque will be mailed to the companies’ registered business address.
IRAS will select some companies a self-review of their CPF contributions. This check is to ascertain their JSS eligibility. IRAS will withhold the March 2021 payouts for these selected companies and subject to internal review and verification.
What is JSS?
In February 2020 Unity Budget, the Singapore Government introduced the Jobs Support Scheme (JSS) to support employers in retaining their local employees.
Local employers are eligible to receive JSS support, except for the Government organisations and related representative offices.
The Singapore Government co-funds the first SGD 4,600 gross monthly wages paid to the local employees up to March 2021.
In the 2021 Budget, the Singapore Government extended the JSS support period for companies operating in the Tiers 1 and 2 sectors. This sectorial JSS covers the wages for the six months from April to September 2021.
The employers can use the subsidies to keep the business going and help to continue hiring the local employees.
What are the specific industries in Tiers?
In Tier 1, the sectors include Aerospace & Aviation, Hospitality, Conventions and Exhibitions, and Tourism. For the Built Environment sector (in Tier 1), the JSS support is only for September 2020 to October 2020 wages.
Tier 2 includes Licensed food shops, Land Transport, Qualifying Retail Outlets, Marine & Offshore, and Arts & Entertainment. For the Built Environment sector (in Tier 2), the JSS support is only for November 2020 to March 2021 wages.
In Tier 3A, the sectors include all other employers and exclude those sectors in Tier 3B.
Tier 3B includes (only for Sep 2020 to Dec 2020 wages) includes Biomedical Sciences, Precision Engineering, Electronics, Financial Services, Information and Communications Technology and Media, and Retail.
Who will receive the Jobs Support Scheme (JSS) payout?
Companies who contributed to Central Provident Fund (CPF) for their employees are eligible for the JSS payout.
Shareholders and/or directors of a corporation are also liable if:
– they are salaried employees with an Assessable Income (AI) of SGD 100,000 or
– less for the Year of Assessment (YA) 2019.
The JSS payout is not for sole proprietors or partners in general partnerships (GP), limited liability partnerships, or limited partnerships.
When will the employers receive the Jobs Support Scheme (JSS) payout?
Eligible employers will receive up to 7 main JSS payouts and a special May 2020 payout.
Payout 1 is payable in the month of April 2020. This is based on wages paid from October to December 2019 and CPF paid on and before 14 February 2020.
Payout 2 is payable in the month of July 2020. This is based on wages paid from February to March 2020 and CPF paid on and before 31 May 2020.
Payout 3 is payable in the month of October 2020. This is based on wages paid in May 2020 and CPF paid on and before 14 September 2020.
Payout 4 is payable in the month of March 2021. This is based on wages paid from September to December 2020 and CPF paid on and before 14 January 2021.
Payout 5 is payable in the month of June 2021. This is based on wages paid from January to March 2021 and CPF paid on and before 14 April 2021. Tier 3B employers will not receive JSS payout.
Payout 6 is payable in the month of September 2021. This is based on wages paid from April to June 2021 and CPF paid on and before 14 July 2021. Tier 3 employers will not receive JSS payout.
Payout 7 is payable in the month of December 2021. This is based on wages paid from July to September 2021 and CPF paid on and before 14 October 2021. Tier 2 and 3 employers will not receive JSS payout.
How much does Jobs Support Scheme (JSS) payout?
The Singapore Government co-funds 25% to 75% of the first SGD 4,600 gross monthly salary paid to the local employees.
The JSS support is extended for six months, from April 2021 to September 2021, for Tier 1 and Tier 2. During the extended period, the co-funding will be at 10% to 30%. Eligible employer will receive their respective JSS payouts with reference to their industry sector’s base tier support.
You can use the JSS Calculator on the IRAS website to determine the JSS amount and the expected payout month for your company.
Accounting treatment for Jobs Support Scheme (JSS) payout
The JSS is a cash grant from the Singapore Government, and these payouts meet the definition of a government grant – SFRS 20 Para 3.
There are some conditions for the JSS payout, and this scheme is managed automatically, with no need for the companies to apply. There is reasonable certainty that the employers comply with the grant requirements, and the employers will receive the JSS payout – SFRS 20 Para 7.
The company should recognise the grant income systematically over the periods in the profit or loss and a grant receivable in the balance sheet – SFRS 20 Para 12 and 20.
In the employers’ hands, the JSS payout is exempted from income tax. If the employers were to transfer or pass the JSS payout in monetary amount to another party, that monetary payment will be taxable in the recipient’s hands.
For more information or further assistance, our annual compilation services team are more than happy to assist you.