Follow the budget announcement in 2021, the government has confirmed the extension of the Jobs Growth Incentive for a further 7 months from February 2021 to September 2021.
What Is Jobs Growth Incentive (JGI)?
The jobs growth incentive is a job creation initiative by the government to promote the hiring of locals. (Locals refers to Singapore citizens and Singapore permanent residents).
When the employer increases their local hires over the period in February 2021, the employer is eligible for a support of 25% (or 50% for mature local hires aged 40 and above, persons with disabilities or ex-offenders) of the first S$5,000 gross monthly wages payable to the new local hires.
The S$5,000 gross monthly wage cap will be further increased to S$6,000 for mature local hires aged 40 and above, persons with disabilities or ex-offenders starting March 2021.
The JGI support will be for up to 12 months for non-mature local hires and 18 months for mature, persons with disabilities or ex-offender local hires. The count starts from the month of hire.
If the employer fails to retain their existing local employees during the qualifying period, their JGI payout will be reduced.
Who Is Eligible for Jobs Growth Incentive?
In order to be eligible, the employer must fulfil ALL of the following:
- The employer is created on or before 15th February 2021
- There must be an increment in the total local workforce
- Increase in local employees earning of gross wages of at least S$1,400 per month
The employer must continuously fulfil the above criteria and make CPF contributions timely in order to get the full JGI payout.
How Do I Apply For JGI Payout?
No action is required on the employers’ part. The inclusion and payout are automatic. JGI payouts will start from March 2021, payable in 10 trenches till Jun 2023.
Looking for local hires for your company? Before you start, know all the various hiring grants you might be eligible for! Come talk to us today!
For all HR matters, be sure to engage the help of a MOM licensed employment agency.
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