Singapore’s enhanced Jobs Support Scheme: What you need to know
5 minute read
UPDATE: The JSS has ended. The last JSS payout was made on March 2022. Submission for late appeals also ended in April 30, 2022. Starting September 30, 2022, the IRAS will no longer entertain appeal submissions or requests for JSS eligibility review.
The government has increased the amount of support given via the Jobs Support Scheme (JSS). This scheme began in February 2020 and has provided money to employers to help retain local employees.
The recent enhanced scheme provides even more support for wages paid during the period of Phase 2 (Heightened Alert) activated from 16 May to 13 June 2021. ALL active employers are eligible, except those specified below.
In this article, we’ve broken down the enhanced JSS and how it can affect your business.
What Is the Jobs Support Scheme?
The Job Support Scheme or JSS was introduced into the Unity Budget last February 2029. It aimed to provide employers with wage support to ensure they retain their local employees during a possible economic uncertainty. This wage support aims to help out both Singapore citizens and permanent residents. All establishments with active employers are eligible to receive JSS payouts. The JSS aims to support businesses retain local workers especially in industries affected by possible restrictions including but not limited to food services, aviation and tourism sectors, and other jobs including local personal drivers.
Who will receive enhanced JSS payouts?
For businesses that are entitled to the Jobs Support Scheme, the government will subsidize 50% of each employee’s monthly wage as a form of wage support. This is applied to the first $4600 actual wages paid per employee. Please note this only pertains to sectors where the tightened measures require suspending many, if not all operations:
- Food services
- Sports centers, gyms, fitness studios
- Performing arts
Likewise, the government will subsidize 30% of each employee’s monthly wage to sectors that are not required to suspend operations but are significantly affected by the increased safety measures in Phase 2 (Heightened Alert). This includes:
- Art galleries
- Historical sites
- Indoor playgrounds
- Family entertainment centres
- Personal care services
On 10 June 2021, the government announced the staggered reopening under Phase 3 (Heightened Alert). Sectors that are required to remain closed until 20 June 2021 will receive JSS support of up to 10% from 21 to 30 June 2021. This includes:
- F&B establishments
- Live performances establishments
- Gyms and fitness studios
- In-person tuition and enrichment classes
A further update on 18 June 2021 announced the extension of JSS to July 2021. Support of up to 30% will be extended to affected businesses for three weeks starting from 21 June. It will then taper down to 10% for the two weeks starting from Jul 12.
Latest update (as of 23 July 2021):
Singapore returned to a Phase 2 (Heightened Alert) that will last from 22 July to 18 August 2021. During this period, support for JSS will be increased for affected sectors depending on their impact level.
For businesses who are severely affected (i.e. suspension of most or activities), JSS support will be increased to 60%. This includes:
- Food and beverage businesses
- Fitness studios
- Performing arts organizations
- Arts education centres
For businesses who are significantly affected (i.e. suspension of some activities or reduced capacity), JSS support will be enhanced to 40%. This includes:
- Retail sector
- Personal care services,
- Tourist attractions
- Licensed hotels, cruise, and regional ferry operators
- MICE organizers
- Travel agents
- Museums, art galleries
- Cinema operators and other family entertainment centres
Support would then taper off to 10% from 19 to 31 August.
How do I apply for JSS?
In order to qualify for JSS payouts, all you have to do is make mandatory Central Provident Fund (CPF) contributions for local employees by the end of each month.
More info on CPF deadlines here.
The Inland Revenue Authority of Singapore (IRAS) will then notify you via post of the tier of support and the amount of JSS payout you will receive. No further action is needed!
When will I receive the enhanced JSS support?
Employers can expect to receive the enhanced jobs support scheme payout–for wages paid from April to June 2021–in September 2021.
Who is excluded from receiving support?
- Those expected to manage well during this time:
- Supermarkets and convenience stores
- Online retailers
- Employers who place local employees on mandatory no-pay leave or lay off employees will not receive support for those employees
- Local Government Agencies and Government-Aided Schools
- People’s Association Services and Grassroot Units
- High Commissions, Embassies, Trade Offices, Consulate
- Unregistered Local/Foreign Entities
- Foreign Military Units
- Representative offices of:
- Foreign companies
- Foreign Government Agencies
- Foreign Trade Associations/ Foreign Chambers/ Foreign Non-profit Organisations
- Foreign Law Practices
- Bank Representative Offices/Insurance Representative Officers/Other Financial Representative Offices (registered with MAS)
- News Bureaus
- International Organisations
- Entities which pay CPF but are not registered in Singapore
If your business is significantly affected but ineligible, you can fill out this form to appeal.
How Do I Return the JSS Payout?
If you were included in businesses to receive JSS payouts and would like to return it, follow the steps below.
- Enter the bank account details of IRAS
Payee: Commissioner of Inland Revenue
Account Type: DBS Current Account
Account No.: 0010468669
DBS Swift Code: DBSSSGSG
- Indicate your business name and purpose under the “Beneficiary Reference / Purpose of Payment / Remittance Information / Payment Details” field. This is to ensure that all erroneous jss payments get returned properly.
- Send a screenshot of the transaction through this payout form.
Is Jobs Support Scheme income taxable?
No, employers don’t need to pay income tax on the subsidies, as ruled in Parliament.
Who is eligible to receive JSS?
All employers who have contributed to their local employees’ CPF funds. If you are still unsure, you can check here
Are shareholders’/directors’ wages eligible for Jobs Support Scheme coverage?
Shareholder-directors are eligible if:
- They receive wages that require CPF contributions. Those who get paid in other forms e.g. fees, will not receive support for those wages.
- The company was registered on or before 20 Apr 2020, and for shareholder-directors with Assessable Income of $100,000 or less for the Year of Assessment 2019.
Where can I find more grants to support my business?
Sleek’s ultimate grants page includes the full range of grants and resources – and is updated periodically with the latest funding news.
Well it’s simple! If you have any questions about getting your business started, get them all answered by having a free consultation call with our experts