Singapore recently launched the Jobs Growth Incentive (JGI) to promote the hiring of the local workforce.
The JGI offers businesses salary support if, between September 2020 and February 2021, they increase their local workforce.
Who is eligible to receive this salary support?
To be eligible for the incentive, businesses must increase the overall local workforce (baseline headcount) and increase the number of local employees earning gross wages of at least SGD$1,400/month, compared to the August 2020 local workforce.
How Much Will Businesses Receive?
Eligible businesses will receive 25% support of the first SGD$5000 of gross monthly wages paid to all new local hires.
If new local hires are above the age of 40, businesses will receive 50% support instead of 25%.
Government support will last for 12 months, starting from the month of hire and the employer must continually meet the eligibility criteria for the entire payout period for the full 12 months of support. From August 2020, the Jobs Growth Incentive (JGI) payout will be decreased if existing local employees leave their employers.
When will eligible employers receive their JGI payout?
Those employers eligible will receive their JGI payout automatically from March 2021. The payment is calculated monthly based on the employer’s mandatory CPF contributions.
Does an employer have to apply for the payout?
Employers do not need to apply. However, some employers may receive review letters from the Inland Revenue Authority of Singapore (IRAS) to further validate their eligibility.
Are all employers eligible to receive the JGI payout?
Certain employers are not eligible for the JGI, including:
- Employers established on or after the 17th August 2020
- Government organizations
- Unregistered entities
- Foreign representative offices
- International organizations
- Entities that pay CPF but are not registered in Singapore