PWCS 2025 payouts will be disbursed by IRAS in March 2026. Find out what’s new in Budget 2025 and how it benefits lower-wage worker employers.
Get complete details on the Progressive Wage Credit Scheme 2025 payout. Learn who qualifies, how much you’ll receive, and when IRAS will credit your account.
What Is the Progressive Wage Credit Scheme (PWCS)?
The PWCS is Singapore’s government initiative, running from 2022 to 2026, to help employers cover wage increases for lower‑wage Singaporean and Permanent Resident employees (earning up to S$3,000/month) by co‑funding the increases for two years if sustained.
When Is the 2025 PWCS Payout?
For the 2025 qualifying year (i.e. wage increases granted in calendar year 2024 or 2025 and sustained), IRAS will make the automatic payout in March 2026. But here’s the nuance:
- The actual distribution to employers typically happens in March of the year following the qualifying year. For example, wage hikes given in 2024 and kept in 2025 will result in payouts in March 2026.
- The earlier March 2025 payout covered qualifying wages in 2023-2024 only.
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Important Details:
- You need to be registered for GIRO as of 18 February 2025, or for PayNow Corporate by 25 March 2025, to receive your payout directly in March 2025 bank transfers- no physical cheques issued.
- For the March 2026 payout, similar automatic crediting using GIRO or PayNow Corporate will apply.
Co‑Funding Rates: What’s New for 2025 & 2026?
As recently increased in Budget 2025:
- The government co‑funds 40% of eligible wage increases for the 2025 qualifying year (up from 30%)-this also applies if increases were given in 2024 and sustained into 2025.
- For wage increases in 2026 (or given in 2025 and sustained), co‑funding is 20% (up from 15%).
This enhances support for companies committed to uplifting lower‑wage workers.
PWCS Eligibility & How It Works
Who qualifies:
- Employers must have CPF‑contributed employees who are Singapore Citizens or PR, earning up to S$4,000 before the increase, receiving at least S$100 average wage increase in the qualifying year.
- Employees must have been employed for at least 3 months in the qualifying year, with CPF contributions.
Payments:
- IRAS automatically calculates payout based on CPF contribution records—no separate application needed.
- Payments are credited via GIRO or PayNow Corporate if properly registered by the respective cutoff dates.
Let’s say an employer increased wages by S$150/month for eligible first‑tier employees in July 2024:
- Co‑funding rate = 40% (the 2025 enhanced rate applies to this increase sustained into 2025).
- Monthly support = S$150 × 40% = S$60 per employee.
- If CPF contributions are made for 12 months in 2025, total for that employee = S$720.
- Entire firm’s amount is CREDITED AUTOMATICALLY in March 2026.
Benefits
- No paperwork for employers—everything is handled by IRAS.
- With increased rates, firms get better financial relief in 2025 and 2026.
- Helps employers gradually elevate wages while managing cost impact.
- Promotes better workplace fairness and employee morale.
At A Glance
| Qualifying Year | Wage Increase Year(s) | Co‑Funding Rate | Payout Month & Year |
|---|---|---|---|
| 2025 | Increases in 2024 or 2025 | 40% | March 2026 |
| 2024 | Increases in 2023–2024 | 30% | March 2025 |
| 2026 | Increases in 2025 (sustained) | 20% | March 2027 |
If you’re an employer in Singapore and gave qualifying wage increases in 2024 or early 2025, expect your PWCS payout in March 2026- automatically deposited if your GIRO/PayNow Corporate registration was timely.
The 2025 enhancements (co‑funding rising to 40%, then 20% in 2026) make it an ideal time to plan wage uplift strategies.
