SINGAPORE BUDGET 2021 - SGUNITED JOBS AND SKILLS PACKAGE (Issue 4)
D) JOBS GROWTH INCENTIVE (JGI)
The JGI supports employers to accelerate their hiring of the local workers between 2020 to September 2021 (inclusive), so as to create good, long-term jobs for locals.
Employers that increase their overall local workforce between September 2020 and September 2021 (inclusive) will receive Government support. The qualifying window for new local hires will be:
- Phase 1 of the JGI: September 2020 to February 2021
- Phase 2 of the JGI: March 2021 to September 2021
To be eligible for the JGI, there must be an increase in overall local workforce size AND
an increase in local workforce size earning at least $1,400/month, compared to the August 2020 local workforce for Phase 1, or the February 2021 local workforce for Phase 2
The support is 25% (or 50% for mature local hires aged 40 and above, persons with disabilities (PwDs) or ex-offenders) of the first $5,000 of gross monthly wages paid to all new local hires. The supportable gross monthly wages will be increased to the first $6,000 of gross monthly wages paid from March 2021 for mature local hires aged 40 and above, PwDs or ex-offenders.
Government support will be for up to 12 months for non-mature local hires from the month of hire and 18 months for mature, PwD or ex-offender local hires, if employers continue to meet the eligibility criteria.
The support for employers that hired locals within Phase 1 and Phase 2 is summarised below:
|Phase 1||Phase 2|
|Qualifying window||New local hires from Sep 2020 – Feb 2021|
Baseline headcount and JGI adjustment factor: Aug 2020
|New local hires from Mar 2021 – Sep 2021|
Baseline headcount and JGI adjustment factor: Feb 2021
|Non-mature||Up to 25% of first $5,000 for 12 months||Up to 25% of first $5,000 for 12 months|
|Mature, PwDs or ex-offender local hires||For gross monthly wages paid in Sep 2020 – Feb 2021, up to 50% of first $5,000|
For gross monthly wages paid from Mar 2021 onwards, up to 50% of first $6,000
Support will be provided for 18 months
|Up to 50% of first $6,000 for 18 months|
- Eligible employers will automatically receive their JGI payouts, which will be computed on a monthly basis based on the employer’s mandatory CPF contributions. However, some employers may receive review letters from IRAS which require them to further substantiate their eligibility.
- Eligible employers will start receiving the first JGI payout from March 2021 onwards.
To encourage employers to retain their existing local employees as far as possible, the JGI payout will be adjusted downwards in the following circumstances:
- if any existing local employees (in the employer’s employ as at August 2020) leave the employer after August 2020. This applies to local hires employed in Phase 1.
- if any existing local employees (in the employer’s employ as at February 2021) leave the employer after February 2021. This applies to local hires employed in Phase 2.
- The adjustment factor will be higher if more existing local employees leave the employer.