Singapore’s recently announced 2022 Budget provides much-needed relief for businesses that have been hit hard these last two years.
A $500 million jobs and business supports package has been announced which includes cash relief of $1,000 per local employee (capped at $10,000 per business) for SME businesses in selected sectors hardest hit by COVID-19 restrictions. To qualify for this cash payment, businesses must be ‘live’ companies, present in Singapore, registered no later than December 31 2021. They must also have an operating revenue of less than $100 million, and have filed their 2021 tax assessment, or have less than 200 employees as of December 31 2021.
Other business support includes:
- Extension of the Jobs Growth initiative, which had previously subsidised wages for newly hired local employees. The extension will cover mature workers (40 years and above) and persons with disabilities or ex-offenders.
- Extension to the Productivity Solutions Grant and other schemes designed to support businesses in adopting digital solutions.
- Finance support schemes including a temporary bridging loan, enhanced trade loans and project loans and M&A loans.
- A newly announced progressive wage support scheme to co-fund the wages of lower-wage workers between 2022 and 2026.
See the key figures from the 2022 budget for businesses below. Download your copy of the infographic here.
Productivity Solutions Grant
A further $600 million has been allocated for the Productivity Solutions Grant (PSG), which supports businesses in adopting IT equipment and solutions to enhance their business processes.
The productivity Solutions Grant has been extended for eligible pre-scoped solutions. PSG will provide enhanced funding support of up to 80% from 1 April 2022 to 31 March 2023 for Food Services and Retail sectors. From 1 April 2022 onwards, the maximum funding support level for other businesses will be up to 70%.
Swingvy is a pre-approved provider of HR and payroll software under the PSG grant. Get in touch to secure funding to implement Swingvy software in your business.
The progressive wage credit scheme
A new progressive wage credit scheme has been introduced in Budget 2022. Through the scheme, the government will co-fund the wages of lower-wage workers between 2022 and 2026.
The government will co-fund 30 percent of the gross monthly wage of workers earning S$2,500 and up to S$3,000 between 2022 to 2023. Those earning less than S$2,500 will receive a co-funding of 50 percent of their monthly wages.
From 2024 until 2026, the co-funding rate for workers earning S$2,500 and up to S$3,000 will be reduced to 15 percent, and 30 percent for those earning less than S$2,500.
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Learn More: https://www.mof.gov.sg/singaporebudget
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