Jobs Growth Incentive (JGI)
The Jobs Growth Incentive (JGI) supports employers to accelerate their hiring of local workforce over the next six months, from September 2020 to February 2021 (inclusive), so as to create good and long-term jobs for locals. The JGI will provide one year of salary support for each new local hire by employers that managed to increase their local workforce from September 2020 to February 2021 (inclusive).
Employers that increase their overall local workforce between September 2020 to February 2021 (inclusive) will receive Government support. To be eligible for the JGI, there must be an increase in overall local workforce size AND increase in local workforce size earning ≥$1,400/month, compared to the August 2020 local workforce. The support is 25% (or 50% for mature local hires aged 40 and above and all persons with disabilities (PwDs) of the first $5,000 of gross monthly wages paid to all new local hires. Government support will be for 12 months from the month of hire, if employers continue to meet the eligibility criteria.
All employers who 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, i.e. the baseline headcount:
Condition 1 – Increase in overall local workforce; AND
Condition 2 – Increase in local employees earning gross wages of at least $1,400 per month
Employers must have been established on or before 16 August to be eligible.
To receive the JGI for full 12 months from the month of hire for each new local hire, the employer must have qualified for JGI during the eligibility period, (i.e. September 2020 to February 2021) and continually meet the eligibility criteria for the entire payout period, i.e. September 2020 to January 2022.
How is each payout computed?
The JGI payout is computed on a monthly basis based on the eligible employer’s mandatory CPF contributions.
- For (i) all new mature local hires aged 40 and above and (ii) all new local PwDs hired (regardless of age), 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.
JGI Adjustment Factor
To encourage employers to retain their existing local employees as far as possible, the JGI payout will be adjusted downwards if any existing local employees (in the employer’s employ as at August 2020) leave the employer after August 2020.
The adjustment factor is calculated based on the ratio of existing local employees who have left the employer to the total number of existing local employees as at August 2020, or 5%, whichever is higher. The adjustment factor is therefore higher if more existing local employees leave the employer. If new local hires (employed from September 2020 onwards) leave the employer, this does not affect the adjustment factor. However, any JGI attached to such local hires will cease.