Eligible Singapore firms to receive Jobs Growth Incentive from March 2021 in support of hiring locals

From March 2021, eligible firms in Singapore can look forward to receiving support payouts as part of the government's Jobs Growth Incentive (JGI).

The scheme, which aims to support businesses in the hiring of locals, will cost the government a total of S$1bn, the Ministry of Manpower announced on Friday (4 September). Eligible firms need not apply for the payouts, which will be computed each month based on their CPF contributions.

"Notwithstanding the impact of COVID-19, there remain areas of strength in our economy and there are firms that continue to do well. The JGI provides substantial salary support to enable these firms to bring forward their hiring plans and grow their local workforce over the next six months, from September 2020 to February 2021.

"Together with the extension of the Jobs Support Scheme, this is a major boost for job creation for locals," the Ministry stated.

Eligibility criteria

In order to be eligible for the JGI, firms must have achieved an increase in their local workforce from September 2020 to the end of February 2021, in comparison to the size of their local workforce in August 2020. This increase must be accompanied by an increase in jobs that pay at least S$1,400 in gross monthly wages.

Additionally, these firms must have been established on or before August 2020.

What eligible firms can expect

Eligible firms will receive 'substantial' salary support for all new local hires at all wage levels, with greater support given to the hiring of mature workers. 

• For each new local hire aged below 40, the government will co-pay 25% of the first S$5,000 of gross monthly salaries for 12 months from the month of hire.
• As for each new mature local hire aged 40 and above, the government will double to amount of support to 50%.

In total, eligible firms can receive up to S$15,000 for each local hire aged below 40, and S$30,000 for each local hire aged 40 and above. To receive the full amount of support, firms will have to continue to meet the eligibility criteria for the entire 12 months.

To encourage firms to retain their existing employees as far as possible, the MOM noted that the JGI payout will be reduced if any person under the firm's employment as at August 2020 leaves the firm after August 2020. This reduction will be computed based on the ratio of existing employees who have left their employer, to the total number of existing employees as at August 2020, of 5% - whichever is higher.

The JGI payments will be over and above the JSS payments that the firm will receive for all its local employees.

For more information on the JGI scheme, and for frequently asked questions, employers can visit the IRAS website.

Photo / 123RF

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