[This article was last updated on 5 April 2022.]
While Singapore’s circuit breaker period has put an extra strain on the restaurant industry, the support available from the Singapore 2020 and 2021 Budget have reassured F&B operators as they cope with the impact of COVID-19. In addition to that, the government has continued the stance that they are ready to provide further support.
We’ve selected the ones that provide relief to restaurants in three main areas: Subsidising staff salaries, easing cash flow, and business transformation. The schemes listed here include the Jobs Support Scheme, the Waiver and Rebate on Foreign Worker Levy, the Senior Employment Credit, and more. Restaurants can expect these to be paid out and granted according to the timelines below.
Relief available for supporting staff salaries
1. Jobs Support Scheme
The largest sum of support your restaurant is likely to receive would be via the Jobs Support Scheme (JSS). Since the foodservice sector has been more severely hit than some other industries, the cash payout from this scheme is higher than most other industries. If you are looking for information about grants that support restaurants to digitise, jump to this article. The final March 2022 payout will cover wages from November to December 2021.
How much money will my restaurant receive via this scheme?
The Jobs Support Scheme (JSS) issued cash payouts to restaurants for 50% of the first $4,600 of wages for every local worker (Singapore Citizens and Permanent Residents) in employment for 8 months in 2020. Additionally, for the months of April and May, the scheme was enhanced to issue payouts for 75% of the first $4,600 of wages for every local worker. The scheme was extended to cover 30% of wages for another 7 months from September 2020 to March 2021. As announced in Budget 2021, JSS was further extended for another 3 months till June 2021 at 10%.
The support under the Job Support Scheme (JSS) was increased to 50% during the period of Phase 2 (Heightened Alert) that took place from 16 May 2021. Between 21 to 30 June 2021, the JSS support level was at 10%. JSS support has increased to 60% for sectors including F&B during Phase 2 (heightened alert) from 22 July until 18 August 2021. In Budget 2021, JSS was extended by up to six months for firms in Tiers 1 and 2 sectors, covering wages paid from April 2021 to September 2021.
What do I need to do to receive the cash payout?
Application is not required. IRAS will notify eligible employers by post of the tier of support and the amount of JSS payout payable to them.
Additional notes and resources on the scheme:
Since the announced update on 21 April 2020, the Jobs Support Scheme payout has been extended to cover wages of employees of a company who are also shareholders and directors of the company with an Assessable Income of $100,000 or less for Year of Assessment 2019.
March 2022 payout:
If your company has an existing GIRO arrangement with IRAS or is registered for PayNow Corporate as at 27 March 2022, you will receive a payout titled “Jobs Support Scheme” (GIRO) or “GOVT” (PayNow Corporate) in your bank account from 31 March 2022. Other employers will receive their cheques from 22 April 2022 mailed to their registered business address.
As part of the checks for JSS eligibility, a small number of employers will receive letters from IRAS asking them to conduct a self-review of their CPF contributions and to provide declarations or documents to substantiate their eligibility for JSS payouts. Their March 2022 payout will be withheld pending the self-review and verifications by IRAS.
Check eligibility of your restaurant for JSS
2. Waiver and Rebate on Foreign Worker Levy (FWL)
The FWL rebate was introduced in 2020. It expired in end March 2022 for employees in the F&B sector. In the past, if you have foreign workers in your restaurant staff, you were entitled to a waiver of all Foreign Worker Levy for April and May and a two-month rebate of levies paid in 2020. The cost of Foreign Worker Levy (FWL) ranged between $300 to $800 per staff monthly, depending on their skill level and your restaurant’s quota level.
How much money will my restaurant receive via this scheme?
The Foreign Worker Levy due in April and May 2020 was waived. In addition, employers also received a Foreign Worker Levy rebate of $1,500 for each work permit or S Pass holder you employ, based on previous levies paid in 2020.
When will I receive the cash payout?
The first Foreign Worker Levy rebate of $750 was scheduled to be paid in April 2020.
What do I need to do to receive the cash payout?
No application was required. Employers will be informed once the rebate is successfully paid to them. In the meantime, employers can check their eligibility and the amount of rebate they will receive here.
3. Senior Employment Credit (SEC)
Introduced in 2011, this scheme was extended in 2016 and further extended in 2020 to support the employment of senior employees. The wage offset applies to Singaporean workers aged 55 and above and earning below $4,000 per month. More support will be given for the higher age bands.
How much money does my restaurant receive via this scheme?
For wages paid during this period, employers will receive up to 8% of the wages paid.
When will I receive the cash payout?
The SEC will take effect from 1 January 2021 to 31 December 2022.
March 2022 payout:
If your company has an existing GIRO arrangement with IRAS or is registered for PayNow Corporate as at 20 Mar 2022, you will receive a payout titled “Senior Employment Credit / Enabling Employment Credit” (GIRO) or “GOVT” (PayNow Corporate) in your bank account from 26 March 2022.
Additional notes about the scheme:
More information about SEC can be found here.
4. COVID-19 Recovery Grant
The COVID-19 Recovery Grant (CRG) provides temporary financial support to workers in lower- to middle-income households who are presently experiencing involuntary job loss, involuntary no-pay leave (NPL) or income loss due to the economic impact of COVID-19.
How much money will my restaurant receive via this scheme?
This payout is for staff, so restaurant owners and manager should encourage staff to apply here.
Is my staff eligible?
Staff who are above 21 years of age need to be living in a property with AV not more than $21,000, and have worked for at least six months cumulatively between January 2020 and December 2021. Economic impact is defined as salary loss for at least three consecutive months, with an average overall loss of at least 50% from all jobs as a part-time or full-time employee. Full eligibility criteria here.
Relief available for easing business cashflow
1. Rental Support Scheme
The rental of your premises constitutes a significant proportion of your restaurant’s fixed costs. The support available on your rental costs will vary depending on whether or not your landlord is a government agency. To support businesses with rental costs during the two Phase 2 (Heightened Alert) (“P2(HA)”) periods and the Stabilisation Phase (including its extension to 21 November 2021), the government will provide rental support to Small and Medium Enterprises (“SMEs”) with an annual revenue not exceeding $100 million, who are tenant-occupiers of qualifying commercial properties. Note that applications for the 3rd payout have closed.
How much money will my restaurant receive via this scheme?
1st payout:
For tenants – 0.5 month of latest contracted gross rent within the period 14 May 2021 to 29 May 2021.
For owner-occupiers – 0.5 month of the property’s Annual Value (i.e. 0.5 x Annual Value / 12) determined as at 14 May 2021 .
2nd payout:
For tenants – 0.5 month of latest contracted gross rent within the period 22 July 2021 to 18 August 2021.
For owner-occupiers – 0.5 month of the property’s Annual Value (i.e. 0.5 x Annual Value / 12) determined as at 22 July 2021 .
3rd payout:
Tenants/owner-occupiers which received the second RSS payout will receive twice the amount of the second RSS payout.
For tenants/owner-occupiers which did not receive the second RSS payout:
For tenants – 1 month of latest contracted gross rent within the period 27 Sep 2021 to 21 Nov 2021.
For owner-occupiers – 1 month of the property’s Annual Value (i.e. Annual Value / 12) determined as at 27 Sep 2021.
When will I receive the cash payout?
1st payout: From 6 August 2021
2nd payout: From 22 September 2021
3rd payout: End November 2021
2. Temporary Bridging Loan Programme (TBLP)
The Temporary Bridging Loan Programme (TBLP) has been further extended for 6 months, from 1 April 2022 to 30 September 2022. TBLP will provide you with relief to your cashflow with a loan quantum of the following:
Up till 31 March 2022: S$3 Million
From 1 April 2022 – 30 September 2022: S$1 Million
Companies interested to apply can approach any of the Participating Financial Institutions.
Who is eligible?
Your restaurant business needs to be registered and physically present in Singapore, with at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership.
3. Small Business Recovery Grant
The Small Business Recovery Grant (SBRG) is a one-off cash support to SMEs such as restaurants that have been affected by COVID-19 restrictions.
Who is eligible?
Food and beverage businesses, including hawker centres, markets, coffeeshops, food courts, and canteens registered no later than 31 December 2021, and must have an annual operating revenue that is less than S$100 million filed with IRAS in the Year of Assessment 2021 by 31 December 2021, or employ fewer than 200 employees as of 31 December 2021. Further eligibility criteria applies.
How much will my restaurant receive?
S$1,000 for each local employee6 with mandatory CPF contributions in the period of 1 November 2021 to 31 December 20217, up to a cap of S$10,000 per firm. Restaurants or hawkers that don’t hire local employees will receive a $1,000.
When will my restaurant receive the payout?
IRAS will notify eligible businesses from June 2022.
4. Food Delivery Booster Package
Restaurants looking to food delivery as an alternative could look to the Food Delivery Booster Package offered by Enterprise Singapore (ESG). The booster package defrays part of food delivery costs via food delivery platforms and third-party logistics partners for transactions made between 16 May 2021 to 15 July 2021. Chope is a third-party logistic partner as part of this package.
How much will my restaurant receive?
For the use of food delivery platforms, ESG will fund five percentage points of the commission cost charged. For the use of third-party logistics partners, ESG will fund 20% of the delivery costs for food delivery orders.
This article will be updated should more information and relief be granted. Access our COVID-19 Resource Centre for restaurants, with guides, infographics, and advisories to equip you with managing and operating your restaurant.
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