Why NOW is the best time to hire someone?

Did you know that you could save up to $54,000 on wages with Jobs Growth Incentive without any lengthy applications?

If you have been thinking about hiring someone and expanding your workforce, now is the best time to do so. When you hire locals (Singaporeans and Singapore PRs), you can gain access to grant support on their wages with the help of Jobs Growth Incentive (JGI).

The IRAS - Inland Revenue Authority of Singapore, department of government of Singapore has instituted the Jobs Growth Incentive (JGI) that aims to help companies in their growth and expansion while also helping local unemployed individuals support themselves.

JGI requires no lengthy application process. If you hire an employee within the specified time frame, you are automatically considered for the support. The government has not only extended this time frame but also enhanced the wage support for some categories. For every person that you hire, you can be supported for up to $54,000 spanning up to 18 months.

30th September is the last day of this eligibility period. Now is the right time to hire people for your company. Read further to know more -

What is the eligibility criteria?

To qualify for the grant, your company -

• Should have gone through an increase in overall workforce

• Should have gone through an increase in local employees earning gross wages of at least $1400 per month

• Should be established before 16th August, 2020

• Should continue to fulfil the above criteria to receive the JGI for its full duration from the month of hire for each new local hire

What is the extent of support?

The support is offered in two categories depending on whether you hire a person below 40 years of age or above 40 years of age. Other categories include persons with disabilities and ex-offenders. The support for the latter two has been enhanced from $30,000 to $54,000 and up to 18 months instead of 12 months.

• For employees below 40 years of age – 25% of first $5000 of gross monthly wage, that is, $15,000 for up to 12 months – from the month of hire

• For employees above 40 years of age, persons with disabilities and ex-offenders - 50% of first $6000 (extended from $5000) of gross monthly wage for up to 18 months (extended from 12), that is, $54,000 ($30,000 previously) - from the month of hire

It should be noted that the JGI does not cover the CPF that the company needs to pay. There is no support for this mandatory employer contribution.

What about the payouts?

The payouts are automatically completed on a monthly basis based on your CPF contribution. They are disbursed quarterly to the eligible employers. Here is the full payout schedule for the grant.

There is no need to apply separately for this grant.

What if one of my employees leaves?

The payout will be decreased by an adjustment factor (learn more here) if any existing local employees from August 2020 leave. If more than one employee leaves, the adjustment factor will increase accordingly. It is essential that you retain your employees to receive the full benefit of this grant.

JGI is one of the easiest grants to be considered for. And if you were already looking to hire someone in the near future, put everything aside and do it today!