20-04-2020, 05:22 PM
(20-04-2020, 04:19 PM)specuvestor Wrote:(18-04-2020, 10:38 AM)Curiousparty Wrote:(18-04-2020, 07:36 AM)Ben Wrote:(17-04-2020, 10:49 PM)Curiousparty Wrote: 74.15 mil (last year wage cost) x 2 months/12 months x 75% = ~ $9.3 mil or ~ 2 cents EPS!!This calculation is incorrect! JSS co-fund wages for the first $4600 gross monthly wages for each LOCAL employee only. And 75% relief is only for the month of Apr, based on Oct 2019 wages. The rest of the months, the relief is either 25%/50%/75%, depending on the industry the company is in. More likely, Boustead can qualify for 25% relief, which nonetheless is still substantial.
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And what is 2 months/12 months?
https://www.iras.gov.sg/irashome/Schemes...eme--JSS-/
75% - April
25% for remaining 5 months = 125% (from May to Sept)
overall =200% or 2 months worth of wage support
2/12 = proportion of wage in one year supported by govt.
75% = discount factor to account for the fact that some staff are not local or PR; or have salaries higher than $4600.
if need be, just need to apply further discount factor. But the figure is roughly there.
Mr Market has yet to take note that, actually for sectors not adversely impacted by COVID19, the govt subsidies would go straight into the net profit of these companies or aka free windfall from GOVT!!!
To be precise, it’s 25% of Oct-Dec 2019 pay, 25% of Feb, Mar, May-Jul 2020 pay and 75% of April 2020 pay so total should be 2.75 months of annual salary capped at $4600 per month.
So probably back of envelope 2.75 /13 months of $74.15 (ref CuriousParty) which is $15.7m which is likely overstated as probably more than 20% of employees make more than $4600
Need to also apply some discount factor for workers who are not Singaporeans or PRs.
Give and take , we are probably looking at about 1 to 1.5 cents boost to overall year EPS .
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