Dr Tan See Leng, Minister for Manpower, mentioned on 24 September 2021 that the Jobs Growth Incentive (JGI) scheme will be extended to March 2022. The JGI scheme (replacing the Enhanced Hiring Incentive) encourages employers to retain their existing, local employees and expand their hiring of local people. Its Phase 3 extension, effective from October 2021 to March 2022 (inclusive), aims to support more local hires while lowering the wage support rate.
For non-mature hires, employers can receive up to 15 per cent of the first $5,000 for six months, and up to $4,500 per hire. As for employers who are employing mature people (inclusive of people with disabilities or are ex-offenders), they can receive up to 50 per cent of the first $6,000, and up to $36,000 per hire.
To qualify for the JGI scheme, employers are required to have increased the size of their overall local workforce from their previous local employee headcount in September 2021, and should also have increased the number of local employees earning a gross wage of at least $1,400 per month.
What is the Jobs Growth Incentive (JGI) scheme?
The JGI scheme is an Inland Revenue Authority of Singapore’s (IRAS) co-pay scheme aimed at incentivizing employers who hire local applicants by providing substantial salaries support at all wage levels. This scheme encourages employers to create good, long-term employment opportunities for Singapore Citizens and Permanent Residents. The JGI scheme has been rolled out in three phases:
- Phase 1: September 2020 to February 2021
- Phase 2: March 2021 to September 2021
- Phase 3: October 2021 to March 2022 (inclusive)
How does my firm apply for the Jobs Growth Incentive (JGI) scheme?
Potential firms will receive letters from IRAS requesting for a self-review of Central Provident Fund (CPF) contributions, and provide declarations to substantiate their eligibility. Successful firms will then receive their JGI scheme’s payouts automatically. Payouts are computed each month, based on the respective CPF contribution.
Summary of Previous and Current JGI Scheme Phases
For more information, please refer to IRAS’s website: https://www.iras.gov.sg/irashome/Schemes/Businesses/Jobs-Growth-Incentive--JGI-/