Progressive Wage Credit Scheme (PWCS)
· Last verified 23 Oct 2026Automatic government co-funding of wage increases that employers give to lower-wage Singapore Citizen and PR employees. Extended to 2028 at Budget 2026.
- Support
- Co-funding of qualifying wage increases, for the part of gross monthly wage up to $3,000: 40% for qualifying year 2025, 30% for 2026, 30% for 2027, 20% for 2028. Increases are co-funded for two years if sustained (2028 increases for one year only).
- Maximum funding
- No fixed cap published
- How to apply
- No separate application needed
- Apply before starting?
- No
Recent changes
Budget 2025 raised 2025 co-funding to 40% and 2026 to 20%. Budget 2026 raised 2026 co-funding from 20% to 30%, extended PWCS to 2028 (30% in 2027, 20% in 2028), and raised the minimum qualifying increase from $100 to $200 from 2027. Co-funding wage ceiling $3,000; eligibility ceiling $4,000.
Who is eligible
- Registered and operating in Singapore
- Private-sector employer; government agencies, foreign embassies and international organisations excluded
- Employee is a Singapore Citizen or PR
- Employee received CPF from a single employer for at least 3 calendar months in the preceding year and was on payroll for at least 3 calendar months in the qualifying year
- Average gross monthly wage after increase is $4,000 or lower
- Minimum average gross monthly wage increase of $100 (2022-2026) or $200 (2027-2028)
- Wages of business owners (sole proprietors, partners, shareholder-directors) not eligible
Quick eligibility check
- 1. Is your business a private-sector employer registered in Singapore?
- 2. Did you give Singapore Citizen or PR employees a wage increase this year?
- 3. Is the average gross monthly wage of those employees $4,000 or lower after the increase?
- 4. Is the average monthly increase at least $100 (2026) or $200 (2027 and 2028)?
- 5. Were the employees on your payroll for at least 3 calendar months in the qualifying year?
- 6. Do you pay CPF contributions for these employees on time?
0 of 6 answered.
What it covers
- Wage increases to resident employees earning up to $4,000 per month (co-funded on wages up to $3,000)
How to apply
- Give qualifying wage increases to eligible SC/PR employees
- Pay CPF contributions on time and correctly
- IRAS computes eligibility from CPF data automatically
- Check the payout and request a breakdown on myTax Portal if needed
Processing time: Payout by the first quarter of the following year
Claims: Automatic payout by IRAS through GIRO or PayNow Corporate, by Q1 of the year after the qualifying year.
Documents you need
- None. PWCS is automatic; employers do not need to apply
- Keep correct and timely CPF contribution records
- GIRO arrangement with IRAS or PayNow Corporate registration to receive payout
Frequently asked questions
What is the Progressive Wage Credit Scheme?
Automatic government co-funding of wage increases that employers give to lower-wage Singapore Citizen and PR employees. Extended to 2028 at Budget 2026.
How much funding does PWCS give?
Co-funding of qualifying wage increases, for the part of gross monthly wage up to $3,000: 40% for qualifying year 2025, 30% for 2026, 30% for 2027, 20% for 2028. Increases are co-funded for two years if sustained (2028 increases for one year only).
Who is eligible for PWCS?
Applicants must be registered and operating in Singapore. Private-sector employer; government agencies, foreign embassies and international organisations excluded Employee is a Singapore Citizen or PR Employee received CPF from a single employer for at least 3 calendar months in the preceding year and was on payroll for at least 3 calendar months in the qualifying year Average gross monthly wage after increase is $4,000 or lower Minimum average gross monthly wage increase of $100 (2022-2026) or $200 (2027-2028) Wages of business owners (sole proprietors, partners, shareholder-directors) not eligible
Do I need to apply for PWCS?
No separate application is needed. Automatic payout by IRAS through GIRO or PayNow Corporate, by Q1 of the year after the qualifying year.
What documents do I need for PWCS?
None. PWCS is automatic; employers do not need to apply; Keep correct and timely CPF contribution records; GIRO arrangement with IRAS or PayNow Corporate registration to receive payout.
Sources
- Official page: https://www.iras.gov.sg/schemes/disbursement-schemes/progressive-wage-credit-scheme-(pwcs)
- https://www.mom.gov.sg/newsroom/press-releases/2026/0303-partnering-businesses-and-workers-to-thrive-in-a-changed-world
Information last verified on 23 Oct 2026. Grant rules change often. Always confirm with Inland Revenue Authority of Singapore (IRAS) before you apply.
