Government Salary Support – Jobs Growth Incentive

January 13, 2021
|In Grant Advisory, Business Advisory and Support, HR Outsourcing
|By Kevin Yeo

If you have increased your local hiring headcount between September 2020 till the end of February 2021, your company may be eligible for up to 50% salary support from the government for your new local hires. If your company is looking to expand, there is no better time to consider hiring locals right now. The Jobs Growth Incentive is here to help.

How To Be Eligible For Jobs Growth Incentive

In order to be eligible, your company must fulfil the below conditions:

  1. The hiring period must be between September 2020 to February 2021 (inclusive)
  2. The overall local workforce size during this qualifying period must see an increase compared to August 2020.
  3. The local workforce count must be earning at least S$1,400 and above to be eligible for consideration.
  4. The company must exist before 16th August 2020.

Which Of The Employees Will Be Eligible and How To Compute The Incentive.

  1. New local hires between the period of September 2020 to February 2021 are eligible.
  2. For new local hires aged 40 and above, the company will receive a 50% rebate of the first S$5,000 gross monthly wage for up to 12 months. (Maximum S$30,000)
  3. For new local hires aged below 40, the company will receive a 25% rebate of the first S$5,000 gross monthly wage for up to 12 months. (Maximum $15,000)
  4. In order to enjoy the full 12 months of salary incentive, the employer must meet the criteria continuously.
  5. If any of your previous local employees are to leave the company during these 12 months, the incentive will be adjusted downwards accordingly. This is to encourage the retention of employees by the company.
  6. The Jobs Growth Incentive is an addition to the Jobs Support Scheme Incentive.

When Will You Receive the Payout?

The first payout will commence in March 2021. Subsequent payouts will take place quarterly. The computation of the payout is determined by the mandatory CPF contribution paid. You are strongly advised to make your CPF payments on time in order to be eligible for the incentives payout.

How To Apply For Jobs Growth Incentive Scheme

No action is required on your part. The payout is automatically computed and disbursed.

 

Would you like to find out more about the many government grants and incentives schemes available for your company? Talk to us today!

 

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