The Jobs Growth Incentive (JGI) supports employers to accelerate their hiring of local workforce over the next six months, from September 2020 to February 2021 (inclusive), so as to create good and long-term jobs for locals.
The JGI will provide one year of salary support for each new local hire by employers that managed to increase their local workforce* from September 2020 to February 2021 (inclusive). The support is 25% (or 50% for mature local hires aged 40 and above AND all persons with disabilities (PwDs**) of the first $5,000 of gross monthly wages^ paid to all new local hires^^.
Government support will be for 12 months from the month of hire if employers continue to meet the eligibility criteria.
To encourage employers to retain their existing local employees as far as possible, the JGI payout will be adjusted downwards if any existing local employees (in the employer's employ as of August 2020) leave the employer after August 2020. The adjustment factor will be higher if more existing local employees leave the employer.
Eligible employers will automatically receive their JGI payouts, which will be computed on a monthly basis based on the employer's mandatory CPF contributions. However, some employers may receive review letters from IRAS to further substantiate their eligibility.
Eligible employers will start receiving the first JGI payout from March 2021 onwards.
*Local workforce: Singapore Citizens or Permanent Residents.
** PwDs must be supported by SG Enable to qualify. Disabilities covered by SG Enable are autism spectrum disorder, intellectual disability, physical impairment, hearing impairment, and visual impairment. If you have queries on the disabilities as covered by SG Enable, you may refer to www.sgenable.sg or contact SG Enable at: 1800-8585 885.
^ Gross monthly wages include local employee mandatory CPF contributions but exclude employer CPF contributions.
^^ Business owners (i.e. sole proprietor of a sole proprietorship or partners of a partnership) and employers trading in their own capacity are not considered employees and will not count as new local hires. Only new local shareholder-directors who are salaried employees of the company will be eligible for the JGI. Existing shareholder-directors who were not salaried employees in the month of August 2020 will not be eligible for the JGI if they start receiving salary from September 2020 onwards.
All employers who have made timely mandatory CPF contributions and achieved the following increases in their local workforce between September 2020 and February 2021 (inclusive), compared to August 2020 local workforce, i.e. the baseline headcount:
Condition 1 - Increase in overall local workforce size; AND
Condition 2 - Increase in local employees earning gross wages of at least $1,400/month
Employers must be established on or before 16 August to be eligible.
To receive the JGI for full 12 months from the month of hire for each new local hire, the employer must have qualified for JGI during the eligibility period, (i.e. September 2020 to February 2021) and continually meet the eligibility criteria for the entire payout period, i.e. September 2020 to January 2022.
Employers can use the JGI calculator in 'Click here to learn more / Apply' to calculate their baseline and check their eligibility for JGI.