How did government come up with the magic number for wage subsidy of 75%?

Why not 80%? 90%? or even 100%?

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Angeline Teo

01 May 2020

Calculator at The Internet

If they chose 80%, maybe the question would be "How did government come up with the magic number for wage subsidy of 80%".

My guess is 75% is a good estimate on sharing the majority of the pain with businessowners, government won't want to take 100% of the pain, so they figure business owners share abt 1 quarter of it?

whether its 75, or 80 or 85 or 95, they probably run some statistics and figure out 25% has the most bang for the buck

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Colin Lim

23 Apr 2020

Financial Services Consultant at Colin Lim

Hi Gabriel Tham,

That is a good question.. maybe they following other countries implemented numbers?

I think the main question govt is more focusing on MNC/ Big companies....small companies will still be impacted and different sectors, dont really use this structure... as i retrench u instead of paying u 25% becos i have no revenue coming in, or ask u go for unpaid leave.... these jobs can be physio, yoga, etc...cos i have friends in these lines all retrench or ask to take unpaid leave...

Important employee to the company will be ask to stay and companies will pay 25%...of their full wage or paycut wage.

https://www.fieldlaw.com/News-Views-Events/1674...

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