Eligible Singapore based firms to receive Jobs Growth Incentive (JGI)

blog imageThe 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).

 Local workforce: Singapore Citizens and Singapore Permanent Residents.

 

What is the JGI?

 

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) of the first $5,000 of gross monthly wages2paid to all new local hires3. Government support will be for 12 months from the month of hire, if employers continue to meet the eligibility criteria.

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 will be higher if more existing local employees leave the employer.

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 to further substantiate their eligibility. 

Eligible employers will start receiving the first JGI payout from March 2021 onwards.

2Gross monthly wages include local employee mandatory CPF contributions but exclude employer CPF contributions.

3 Business owners trading in their own capacity are not considered employees and will not count as new local hires. Only new local shareholder-directors who are salaried employees of the company will be eligible for the JGI. Existing shareholder-directors who were not salaried employees in the month of August 2020 will not be eligible for the JGI if they start receiving salary from September 2020 onwards. 

 

Who is eligible for the JGI?

 

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.

The following employers are not eligible:

a. Employers established on or after 17 August 2020
b. Dormant employers, e.g. No business done, not in operations, various inactive business status, in the midst of Struck off, Struck off, In Liquidation etc.
c. Local Government Agencies including Organs of State, Ministries and Departments, Statutory Boards
d. Government and Government-Aided Schools
e. PA Services and Grassroot Units
f. High Commissions, Embassies, Trade Offices, Consulate
g. Unregistered Local/Foreign Entities
h. Foreign Military Units
i. Representative offices of:
     I. Foreign companies
     II. Foreign Government Agencies
     III. Foreign Trade Associations/ Foreign Chambers/ Foreign Non-profit Organisations
     IV. Foreign Law Practices
j. Bank Representative Offices/Insurance Representative Officers/Other Financial Representative Offices (registered with MAS)
k. News Bureaus (which are representative offices)
l. International Organisations
m. Entities which pay CPF but are not registered in Singapore

 

How does one apply for the JGI?

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.

 

When will one receive their JGI payout?

Eligible employers will receive3JGI payouts starting from March 2021, covering gross wages of new local hires paid in the months shown in the table below.

Month where CPF contributions for new local hires from September 2020 to February 2021 is made for: Gross wages for JGI in the month of hire will be derived based on mandatory CPF contributions paid on or before4:Month when JGI payout will be disbursed:
Payout 1
September 202014 October 2020 March 2021
October 202014 November 2020
November 202014 December 2020 
Payout 2
December 202014 January 2021June 2021
January 202114 February 2021
February 2021514 March 2021
Payout 3
March 202114 April 2021 September 2021
April 202114 May 2021
May 202114 June 2021
Payout 4
June 202114 July 2021 December 2021
July 202114 August 2021
August 202114 September 2021
Payout 5
September 202114 October 2021  March 2022
October 202114 November 2021
November 202114 December 2021
Payout 6
December 2021 14 January 2022May 2022
January 202214 February 2022

Employers selected for review will only receive their payouts after IRAS is satisfied with the outcome of the review.
4CPF contributions are due at the end of each month and must be paid by the 14th of the following month. If the last day of the grace period falls on a Saturday, Sunday or Public Holiday, CPF contributions must be paid by the next working day. Late payment interest will be charged by CPF Board.
5End of eligibility period for new hire. Eligibility period is September 2020 till February 2021. 

 
 
 

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