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The Singapore Government has set aside $1 billion under the Jobs Growth Incentive scheme (JGI) to support businesses in hiring more locals. The Government will provide substantial salary support for all new local hires at all wage levels, with higher support for older hires.
Under this scheme, for each new local hire aged below 40, the Government will co-pay 25% of the first $5,000 of gross monthly wages for 12 months from the month of hire. The Government support is doubled to 50%, for each new older employee aged 40 and above.
In total, eligible firms can receive up to $15,000 for each local hire aged below 40, and $30,000 for each local hire aged 40 and above.
The scheme only applies to firms that were set up on or before 16 August 2020.
To be eligible for Government support under the Jobs Growth Incentive scheme (JGI), employers should have made timely mandatory CPF contributions, and achieved the following increases in their local workforce between September 2020 and February 2021 (inclusive), compared to the August 2020 local workforce:
Condition 1: Increase in overall local workforce; AND
Condition 2: Increase in local employees earning gross wages of at least $1,400 per month
The term local workforce refers to Singapore Citizens and Singapore Permanent Residents.
The support is 25% (or 50% for local hires aged 40 and above) of the first $5,000 of gross monthly wages paid to all new local hires.
This Government support will be for 12 months from the month of hire, if employers continue to meet the eligibility criteria. Employers can use the JGI calculator to calculate their baseline and check their eligibility for JGI.
Do note that employers established on or after 17 August 2020 are NOT eligible for support under the JGI scheme.
Employers DO NOT need to apply for the JGI. IRAS will notify eligible employers by post of the amount of JGI payout payable to them. They can also log in to myTax Portal to view the electronic copy of their letter.
Payouts will be computed monthly and disbursed quarterly to eligible employers, based on their mandatory CPF contributions. The first payout will be made from March 2021.
The following table shows the schedule for JGI payout:
The JGI payout will be adjusted downwards if any existing local employees (under the firm's employment as of August 2020) leave. The adjustment factor will be higher if more existing local employees leave the employer. This is to encourage employers to retain their existing local employees as far as possible.
If new local hires (employed from September 2020 onwards) leave the employer, it does not affect the adjustment factor. However, any JGI attached to such local hires will cease.
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