Extension of Jobs Credit?

THE Government will announce by the middle of October whether the Jobs Credit scheme will be extended, and if so, in what form.

This early decision will be welcomed by the business community as many companies are already in the process of firming up their business plans and budgets for next year.

The Jobs Credit scheme was introduced in this year's Budget to help companies hold on to their workers amid one of Singapore's worst recessions since independence.

Under the scheme, the Government helps employers defray part of the wage bill of local workers. It gives employers funds for every resident worker on their Central Provident Fund payroll - 12 per cent on the first $2,500 of each month's wages for each employee.

There are four payouts in the year, with the last payment made in December.

Said the Finance Ministry noted in a statement on Tuesday: 'As stated in the 2009 Budget Speech, the Government would review whether it is necessary to extend the Jobs Credit scheme depending on the state of economy.

'The review is currently ongoing, taking into account all factors including the latest economic and employment outlook for the coming year.'

'The Government will announce whether the Jobs Credit scheme will be extended, and if so in what form, by mid-October.'

In its statement, the ministry also said that more than 100,000 employers, hiring about 1.4 million local workers, will receive $890 million from the third payment of Jobs Credit on September 30.

Eligible employers will receive a notification letter by Thursday from the Inland Revenue Authority of Singapore informing them of the amount of Jobs Credit they will receive in the third payment.

- The Straits Times