Wage subsidies under the Jobs Support Scheme (JSS) will be extended by up to seven months, Deputy Prime Minister Heng Swee Keat announced on Aug. 17, 2020.

The subsidies will over wages paid up to March 2021 for firms in sectors harder hit by the Covid-19 crisis.

For sectors that are managing well, the subsidies will extend till December 2020.

The support will be adjusted based on the projected recovery of the different sectors, Heng said in a ministerial statement.

The support will range from 10 to 50 per cent for wages paid from September onwards to help employers retain their local workers.

But maintaining the JSS at current levels is not feasible.

"We cannot sustain the JSS at current levels," Heng said.

"It draws heavily on our reserves and risks trapping our workers in unviable businesses. Some sectors are also recovering faster than others."

How new extension of subsidy works

The subsidy applies to the first S$4,600 of gross monthly wages paid to each Singaporean or permanent resident employee.

Here is a breakdown of the help dished out:

Firms in the aerospace, aviation and tourism sectors: Will receive 50 per cent of wages paid from September until March.

Built environment sector with construction activity resuming in phases: Will receive 50 per cent of wages paid in September and October, and then 30 per cent of wages paid until March.

Arts and entertainment, food services, land transport, marine and offshore, and retail sectors: Will receive 30 per cent of wages paid until March.

Biomedical sciences, precision engineering, electronics, financial services, infocomm technology and media, online retail and supermarkets that are managing well: Will receive 10 per cent of wages paid until December 2020.

Other firms will receive 10 per cent of wages paid until March.

Background

The JSS was first introduced in the Budget statement in February.

It was enhanced subsequently, and has subsidised between 25 per cent and 75 per cent of wages paid for 10 months.

It was to cover wages paid until August, with the final payout in October.

There will now be additional payouts in March and June next year for relevant firms.

More than S$16 billion of the S$23.5 billion allocated for the scheme has been disbursed so far.

The money has reached over two million local workers in more than 150,000 firms.

Resident unemployment rate has risen from 3.3 per cent in March to 3.9 per cent in June.

However, Heng noted that this is still below the peak levels seen during the SARS outbreak in 2003 and global financial crisis more than a decade ago.

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