Job Growth Incentive (JGI): A new initiative by Singapore government to support employers to hire local workforce.
On top of the Job Support Scheme (JSS) which provide salary support for existing local employees, the Job Growth Incentive (JGI) will provide salary support for new local hire. Starting from September 2020 to February 2021 (inclusive), employers that hire new local employees (Singaporean and Permanent Resident (PR) will get salary support of 25% or 50% for aged 40 and above. The JGI will be for 12 months from the month of hire if the employers continue to meet the eligibility criteria.
Eligible company will receive one year of salary support for each new local hire that it managed to increase its local workforce within the period.
Who is eligible for the Job Growth Incentive?
There are 3 conditions for the JGI.
- All employers who have increased their local workforce between September 2020 and February 2021, compared to the August 2020 local workforce. The JGI will base on the CPF contributions to identify the increase of the local workforce.
- Increase in the local employee gross salary of at least $1,400 per month. The JGI will support up to $5,000 in the gross monthly salary.
- The company must be registered with ACRA on or before 16th August 2020 to be eligible.
Employers that are not eligible for the Job Growth Incentive.
- Employers established on or after 17 August 2020
- Dormant employers, e.g. No business done, not in operations, various inactive business status, in the midst of Struck off, Struck off, In Liquidation etc.
- Local Government Agencies including Organs of State, Ministries and Departments, Statutory Boards
- Government and Government-Aided Schools
- PA Services and Grassroot Units
- High Commissions, Embassies, Trade Offices, Consulate
- Unregistered Local/Foreign Entities
- Foreign Military Units
- Representative offices of:
- Foreign companies
- Foreign Government Agencies
- Foreign Trade Associations/ Foreign Chambers/ Foreign Non-profit Organisations
- Foreign Law Practices
- Bank Representative Offices/Insurance Representative Officers/Other Financial Representative Offices (registered with MAS)
- News Bureaus (which are representative offices)
- International Organizations
- Entities which pay CPF but are not registered in Singapore
How do I apply for the Job Growth Incentive?
Employers do not need to submit an application for the JGI. IRAS will notify the eligible employers by post of the JGI payout amount payable to them. Besides that, employers can also login to the tax portal by using their CorpPass to view the electronic copy of the letter.
When will I receive the Job Growth Incentive payout?
Employers will receive the payout in 6 tranches starting from:
- March 2021,
- June 2021,
- September 2021,
- December 2021,
- March 2022
- May 2022.
The company must ensure that the CPF contribution is submitted by the 14th of the following month. If the employers are selected for review, they will only receive the payouts after IRAS is satisfied with the outcome of the review.
How is the payout computed?
The JGI payout is computed on a monthly basis based on the eligible employer’s mandatory CPF contributions.
For all new mature local hires aged 40 and above, the Government will co-fund up to 50% of the first $5,000 of gross monthly wages;
For all other new local hires, the Government will co-fund up to 25% of the first $5,000 of gross monthly wages.
The employer must continually meet the eligibility criteria for the entire 12-month period in order to receive the JGI for the full 12 months for each new local hire employed in the eligible period from September 2020 to February 2021 (inclusive). Otherwise, they would receive the JGI for months where they meet the eligibility criteria. Employers that did not meet the eligibility criteria for the JGI at least once from September 2020 to February 2021 (inclusive) will not receive the JGI even if they meet the employer eligibility criteria from March 2021 onwards.
