Accelerating the Hiring of the Local Workforce
To support the local economy and its residents, Singapore has launched the Jobs Growth Incentive (JGI) to promote the hiring of the local workforce. With the Singaporean economy ravaged by the Covid-19 pandemic and many workers retrenched, the government has implemented many schemes and incentives to help the city get back on its feet.
The JGI offers businesses salary support if they increase their local workforce between the period of September 2020 to February 2021. 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.
(*Note: The JGI has been extended. Phase 2: March 2021 to September 2021/ Phase 3: October 2021 to March 2022. For more information visit the Government Website.)
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 then businesses will receive 50% support instead of 25%.
Government support will last for 12 months starting from the month of hire and must continually meet the eligibility criteria for the entire payout period for the full 12 months of support. The Jobs Growth Incentive (JGI) payout will be adjusted downwards if existing local employees, as of August 2020, leave the employer after August 2020.
Eligible employers will receive their JGI payout automatically from March 2021 onwards, which is calculated on a monthly basis based on the employer’s mandatory CPF contributions. 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.
Certain employers are not eligible for the JGI, including:
- Employers established on the 17th August 2020 or after
- Government organisations
- Unregistered entities
- Foreign representative offices
- International organisations
- Entities that pay CPF but are not registered in Singapore
A Quick Overview of the Jobs Growth Incentive (JGI)
*This information intended as a general guide, for more details please visit the government website or contact us now!
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Don’t want to miss out on the latest government schemes or subsidies? In a time when governments around Asia are implementing new policies and plans to fight the economic downturn, it is vital for business leaders to learn about any changes that can benefit or impact their company.
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