Ref: PWCS · IRAS · reviewed 05 Jul 2026

Progressive Wage Credit Scheme

The government co-funds a share of wage increases you give to lower-wage local employees, automatically via IRAS, no application needed.

Co-funding share of qualifying wage increases (rates set per year at Budget) funded

Applies to wage increases within the qualifying gross wage ceiling

Who qualifies

  • Employers giving wage increases to Singapore Citizen or PR employees
  • Employee gross monthly wage within the qualifying ceiling
  • CPF contributions must be paid on time (that is the data source)

What it pays for

  • A percentage of the wage increase you give, paid out to the employer
  • Automatic payout based on CPF records

How to apply

Automatic annual payout cycles

  1. 1No application: pay CPF correctly and on time
  2. 2Give qualifying wage increases
  3. 3Receive the co-funding payout from IRAS in the scheduled cycle

Advisor's note

Because it is automatic, PWCS is invisible to most owners: factor it in BEFORE deciding this year's increments, because the co-funding changes the real cost of a raise.

Planning a digitalisation or overseas-expansion project? Those usually run under EDG or MRA, which our team delivers end to end.

Common questions

How much does the PWCS cover?

Co-funding share of qualifying wage increases (rates set per year at Budget), applies to wage increases within the qualifying gross wage ceiling. The government co-funds a share of wage increases you give to lower-wage local employees, automatically via IRAS, no application needed.

Who is eligible for the PWCS?

Employers giving wage increases to Singapore Citizen or PR employees Employee gross monthly wage within the qualifying ceiling CPF contributions must be paid on time (that is the data source)

What does the PWCS pay for?

A percentage of the wage increase you give, paid out to the employer Automatic payout based on CPF records

How do I apply for the PWCS?

1. No application: pay CPF correctly and on time 2. Give qualifying wage increases 3. Receive the co-funding payout from IRAS in the scheduled cycle

How long does the PWCS take?

Automatic annual payout cycles

Free eligibility check

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