Understanding the Job Growth Incentive (JGI)

Job Growth Incentive (JGI)The Job Growth Incentive (JGI) is a governmental initiative in Singapore designed to boost local employment. The scheme has been extended several times, with the four phases now covering local employment up to September 2022.

The phases are as follows:

  • Phase 1: September 2020 to February 2021
  • Phase 2: March 2021 to September 2021
  • Phase 3: October 2021 to March 2022
  • Phase 4: April 2022 to September 2022

The 2022 budget allowed an additional six-month extension of the scheme until September 2022, specifically targeting certain demographics. These include mature job seekers over the age of 40, those who’ve been unemployed for roughly six months, non-mature hires, ex-offenders, and individuals with disabilities.

 

Who Qualifies for the JGI?

Eligibility criteria have evolved over the different phases of the JGI. However, core conditions for a person to be eligible for the Job Growth Incentive include:

Being a Singaporean Citizen or Singapore Permanent Resident (PR).
Being employed by a company established on or before 16 August 2020, with this company making timely CPF contributions.
Having contributed to a substantial increment in the size of the local workforce.
Being part of the increased local workforce earning up to $1,400 per month.

 

How Does the JGI Salary Support Work?

Employers receive certain amounts of salary support from the JGI:

  • Employers receive 50% salary support for all local workers aged 40 or older, applicable on their first $6,000 salary over a twelve-month period.
  • Employers also get 50% salary support for all local hires that include ex-offenders and people with disabilities, applied to the first $6,000 of their salary for twelve months.
  • Additionally, employers get 15% salary support on all non-mature local hires, or those under 40. This applies to their initial $5,000 salary over six months.

Note that the scheme only covers the workers’ compulsory CPF contributions, not those made by the employer.

Interestingly, there’s no need for employers to apply for the Job Growth Incentive. The government would notify employers via post about their eligible amount. If they wish, employers can opt out from the JGI payout or return it under certain conditions. Regardless, it’s a good idea to keep employees informed about their JGI status.