Singapore to extend wage subsidy plan by six months

Published: 12 Oct 2009 17:52:48 PST

SINGAPORE, Oct 13 - Singapore's finance ministry said on Tuesday it will extend a wage subsidy scheme by another six months after the plan expires in December but the monthly subsidy will be reduced sharply.

Singapore introduced a "Jobs Credit" plan in January 2009, whereby firms received a cash grant of 12 percent of a worker's monthly salary or up to S$300 ($215) per month to save jobs amid the city-state's worst recession.

The finance ministry said in a statement the subsidy will be cut to 6 percent of a worker's monthly salary, or up to S$150 a month for January to March 2010; and then to 3 percent of monthly pay or up to S$75 a month for April to June 2010.

The plan, which excludes the million-plus foreign workers who do not hold permanent residency status, was originally scheduled to end in December.