Progressive Wage Credit Scheme (PWCS)

What does it support?

PWCS supports qualifying increases in resident employees' wages. It is relevant to employers planning or sustaining pay increases that meet the scheme's wage and employment conditions.

Who can apply?

The employer must be an eligible Singapore-registered entity. Employees must be Singapore Citizens or Permanent Residents and meet the applicable wage, CPF history and payroll-duration requirements. There is no local ownership requirement for the employer.

How does the support work?

Government co-funding is 30% for 2026, 30% for 2027 and 20% for 2028, subject to the wage ceilings and eligibility rules. The payment is calculated from qualifying employee wage increases, so there is no fixed company-level grant cap.

What expenditure can qualify?

The support base is the qualifying wage increase within the applicable PWCS wage ceiling. PWCS does not reimburse a training, equipment or business-transformation budget.

Key conditions

An employee must generally have CPF contributions from the same employer for at least three months in the preceding year and three months in the qualifying year.

The minimum qualifying wage increase is S$100 in 2026 and S$200 in 2027 and 2028. The employee's wage must remain within the applicable PWCS limits, and employer and employee exclusions still apply.

Timing and application process

PWCS covers qualifying years through 2028. IRAS assesses employers using CPF records and pays support for the relevant qualifying year in the first quarter of the following year. Companies should check the wage increase and employment conditions against their payroll records rather than prepare a separate project application.

Important programme distinctions

PWCS supports a qualifying increase in pay, rather than providing an offset against every employee's full wage. A transition rule may allow wage increases below S$200 that qualified in 2026 and are sustained in 2027 to continue receiving support.

Related funding routes

• Senior Employment Credit — for wage support relating to eligible senior workers.
• Enabling Employment Credit — for eligible employees with disabilities.
• Grant & Incentive Directory — to compare workforce support.