Progressive Wage Credit Scheme (PWCS)
The Progressive Wage Credit Scheme (PWCS) provides transitional wage support for employers to adjust to mandatory wage increases for lower-wage workers covered by the Progressive Wage Model (PWM) and Local Qualifying Salary (LQS) requirements, and to voluntarily raise wages of lower-wage workers. The Government co-funds eligible wage increases for Singapore Citizens and Permanent Residents from 2022 to 2026. Budget 2025 enhanced the co-funding rates for 2025 and 2026. The PWCS is administered by IRAS and requires no application from employers — payouts are automatically computed and disbursed based on CPF contribution data.
Eligibility Criteria
- 01
Firms automatically qualify if they give wage increases to eligible resident employees
- 02
Must not be on the employer exclusion list
- 03
Employees must be Singapore Citizens or Permanent Residents
- 04
Employee must have received CPF contributions for at least 3 calendar months in preceding year
- 05
Average gross monthly wage increase of at least S$100
- 06
Pre-increase wage ≤$3,000, post-increase wage ≤$4,000
Frequently Asked Questions
No — payouts are automatic based on CPF contribution data.
S$100/month average gross monthly wage increase.
Not eligible for PWCS co-funding (pre-increase wage must be at or below $3,000).
Via GIRO or PayNow Corporate — no cheques issued. Sign up if not already on these modes.
Yes, within 2 months of payout month via http://go.gov.sg/pwcsappeal. Late appeals will not be considered.