In 2023, the government will continue to co-fund up to 75% of pay increases for workers earning a gross wage of up to $2,500 a month, tapering down over time till 2026. For those earning between $2,500 and $3,000, a lower co-funding ratio will apply.
As part of Budget 2023, deputy prime minister Lawrence Wong announced that Singapore would maintain the increase to the Progressive Wage Credit Scheme (PWCS), and top up the fund by $2.4 billion.
The PWCS is a scheme through which the Singapore government jointly funds wage increases for lower-wage workers. The scheme was introduced in the Budget last year to provide support from 2022 to 2026 for employers.
