Progressive Wage Credit Scheme

Who qualifies

• The employee must have received CPF contributions from one employer for at least 3 calendar months in the preceding year and be on the current firm's payroll for at least 3 calendar months in the qualifying year; the months need not be consecutive.
• Average gross monthly wage increase must be at least $100 (qualifying years 2022-2026) or $200 (2027-2028); average post-increase wage must not exceed $4,000.
• The employee's wage before the increase must be within the applicable $2,500 or $3,000 PWCS wage ceiling.
• Government agencies, foreign-registered businesses, foreign missions/embassies/trade offices, and international organisations do not qualify; wages of sole proprietors, partners, and shareholder-directors are excluded.

What it funds

• Recruiting, salary support, job redesign, career conversion

Costs covered: External payment tied to a hire's salary (offsets).

Maximum support: up to 75%.

Co-funding rates are 75%/45% in 2022 and 2023 for the <=$2,500/>$2,500-$3,000 tiers, 50%/30% in 2024, then a single <=$3,000 tier at 40% in 2025, 30% in 2026 and 2027, and 20% in 2028.

Payment: Paid as a percentage of salary over time.

How to apply

Employers do not need to apply for PWCS payouts. IRAS automatically determines qualifying employers from wage and CPF records, notifies them, and disburses the payout.

The official page states that employers do not need to apply; the user guide names UEN/NRIC/FIN and contact details only for optional breakdown requests.

1. Give eligible resident employees the qualifying wage increases and make the required CPF contributions.
2. Ensure GIRO or PayNow Corporate is available for automatic crediting.
3. Receive the IRAS notification and payout for the respective qualifying year.

Before applying

• Give an eligible resident employee the required wage increase and make CPF contributions for at least 3 calendar months in the qualifying year.

Processing time: Payouts are disbursed by Q1 of the subsequent year for each qualifying year.

Claiming support

No payout claim is required. An employer may make one online breakdown request per qualifying payout, provide consent and a declaration for eligible new employees, or complete the PWCS appeal form if it believes it should have qualified.

Appeal within 2 months from the month of payout (31 May for a March payout); submit a new-employee Declaration Form within 1 month of the breakdown request.

Contact: https://go.gov.sg/askPWCS

Application window: The scheme has qualifying years 2022 to 2028, with the final payout by Q1 2029. There is no application window because assessment is automatic.