Firms in Singapore Are Being Incentivised to Hire Locally in the Next Few Months
The Singapore government is offering a job growth incentive in a bid to urge companies to hire more locals within the next few months.
Any company that hires more locals will receive help. The Government will pay for up to half the wage payments. This is a very clear signal to all companies. It is time to start hiring and creating more local jobs.
The scheme aims to boost the hiring of locals in growth sectors. This new scheme is on top of the current Jobs Support Scheme which is covering wages until next March.
More Jobs Springing Up Locally
More jobs and investments are expected to come up with in Singapore. This is provided Singapore remains competitive and open. It will help strengthen the country once again, bouncing back from the Covid-19 pandemic.
About the Job Growth Incentive
Companies can get up to $15,000 for each new local hire in the next six months. This is applicable for hires below 40 years old. For older hires, companies can expect up to $30,000 per worker. This falls under the Government’s Job Growth Incentive scheme worth $1billion.
Companies can expect to receive the pay-outs over the next 12-months. This will start in March next year. The sum will be computed automatically for each company. It will be based on the Central Provident Fund (CPF) contributions.
The Government will co-pay one-quarter of the employee’s first $5,000 gross monthly wages annually. Older hires will have this sum doubled 50% per hire.
When to Expect Your Job Growth Incentive Pay-outs
Companies can expect pay-outs perusing the following guide as a reference:
| Pay-out Cycle | The month of CPF Contributions for New Local Hires (September 2020-February 2021) | Pay-out Date |
| Round 1 | September 2020
| March 2021
|
| Round 1 | October 2020
| March 2021
|
| Round 1 | November 2020
| March 2021
|
| Round 2 | December 2020
| June 2021
|
| Round 2 | January 2021
| June 2021
|
| Round 2 | February 2021
| June 2021
|
| Round 3 | March 2021
| September 2021
|
| Round 3 | April 2021
| September 2021
|
| Round 3 | May 2021
| September 2021
|
| Round 4 | June 2021
| December 2021
|
| Round 4 | July 2021
| December 2021
|
| Round 4 | August 2021
| December 2021
|
| Round 5 | September 2021
| March 2022
|
| Round 5 | October 2021
| March 2022
|
| Round 5 | November 2021
| March 2022
|
| Round 6 | December 2021
| May 2022
|
| Round 6 | January 2022
| May 2022
|
Employers Have an Important Role
Employers in Singapore have an important role to play. The purpose of this job growth incentive is to make retrenchment a last resort. In these uncertain times, job security is important now more than ever. However, it is also important that the economy stays open and welcoming to foreign investment despite the local focus. The overall aim is still to grow Singapore as much as possible.
Companies need to find a balance. Singapore must still have a diverse ecosystem. It must continue investing in their own people while opening doors for greater opportunities. This will ensure Singapore has the best chance of thriving.
To qualify for this new Job Growth Scheme, a company must increase its headcount between now and February. They must increase the number of local hires that earn a minimum $1,400 monthly (gross wages). This is applicable only to first incorporated before 16 August 2020. Singapore Companies must continue meeting the eligibility criteria for 12-months to qualify for the full support amount.
