Jobs Growth Incentive (JGI)

The Jobs Growth Incentive (JGI) supports employers to expand local hiring1 from September 2020 to September 2021 (inclusive), so as to create good and long-term jobs for locals.

 

The JGI will provide up to 12 months of salary support for each non-mature local hire and 18 months of salary support for each mature hire, person with disability or ex-offender hired by employers that managed to increase their local workforce within the qualifying window.

 

1 Local workforce: Singapore Citizens and Singapore Permanent Residents.

Mar 2021 Payout:

If your company has an existing GIRO arrangement with IRAS or is registered for PayNow Corporate as at 28 Mar 2021, you will receive a payout titled “Jobs Growth Incentive” (GIRO) or “GOVT” (PayNow Corporate) in your bank account from 31 Mar 2021. There would not be any JGI payout made via cheques.

For the Mar 2021 payout, you will receive 25% or 50% support, whichever is applicable, for the first $5,000 of gross monthly wages paid to all new local hires for the months of September, October and November 2020.

As part of checks for JGI eligibility, you may receive a letter from IRAS to conduct a self-review of your CPF contributions. You may be required to provide declarations or documents, in order to substantiate your eligibility for JGI payouts. If you are selected for self-review, your Mar 2021 payouts will be withheld pending the self-review and verifications by IRAS. The payout will only be disbursed after the completion of the review. If your company has been selected for self-review, please refer to the ‘Self-review for Eligibility of JSS and JGI’ section for more information.

What is the JGI?

Employers that increase their overall local workforce between September 2020 and September 2021 (inclusive) will receive Government support. The qualifying window for new local hires will be:

  • Phase 1 of the JGI: September 2020 to February 2021

  • Phase 2 of the JGI: March 2021 to September 2021

To be eligible for the JGI, there must be an increase in overall local workforce size AND an increase in local workforce size earning ≥$1,400/month, compared to the August 2020 local workforce for Phase 1, or the February 2021 local workforce for Phase 2

The support is 25% (or 50% for mature local hires aged 40 and above, persons with disabilities (PwDs)2 or ex-offenders3) of the first $5,000 of gross monthly wages4 paid to all new local hires5. The supportable gross monthly wages will be increased to the first $6,000 of gross monthly wages paid from March 2021 for mature local hires aged 40 and above, PwDs or ex-offenders.

Government support will be for up to 12 months for non-mature local hires from the month of hire and 18 months for mature, PwD or ex-offender local hires, 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 in the following circumstances: 

  • if any existing local employees (in the employer’s employ as at August 2020) leave the employer after August 2020. This applies to local hires employed in Phase 1.

  • if any existing local employees (in the employer’s employ as at February 2021) leave the employer after February 2021. This applies to local hires employed in Phase 2. 

  • The adjustment factor will be higher if more existing local employees leave the employer.

The support for employers that hired locals within Phase 1 and Phase 2 is summarised below:

JGI Table  

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 which require them to further substantiate their eligibility.  

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

2 See FAQ 1 under Category: Higher JGI Support for Persons with Disabilities (PwDs) and ex-offenders on how to qualify.

3 See FAQ 3 under Category: Higher JGI Support for Persons with Disabilities (PWDs) and ex-offenders on how to qualify.

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

5 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 (or February 2021) will not be eligible for the JGI if they start receiving salary from September 2020 (or March 2021) onwards.

 JGI Infographic_16Feb

Who is eligible for the JGI?

Eligibility for the JGI is dependent on the month the hiring of new locals was achieved. 

To be eligible for Phase 1, 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 2020 to be eligible.

To be eligible for Phase 2, all employers who have made timely mandatory CPF contributions and achieved the following increases in their local workforce between March 2021 and September 2021 (inclusive), compared to the February 2021 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 15 February 2021 to be eligible.

To receive the JGI for full 12 months or 18 months from the month of hire for each new local hire (depending on worker profile), the employer must have qualified for JGI during the eligibility period for each phase (i.e. September 2020 to February 2021 or March 2021 to September 2021), and continually meet the eligibility criteria for the entire payout period.

a. Phase 1: Employers established on or after 17 August 2020

b. Phase 2: Employers established on or after 16 February 2021

c. 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.

d. Local Government Agencies including Organs of State, Ministries and Departments, Statutory Boards

e. Government and Government-Aided Schools

f. PA Services and Grassroot Units

g. High Commissions, Embassies, Trade Offices, Consulate

h. Unregistered Local/Foreign Entities

i. Foreign Military Units

j. Representative offices of:  
     I. Foreign companies
     II. Foreign Government Agencies
     III. Foreign Trade Associations/ Foreign Chambers/ Foreign Non-profit Organisations
     IV. Foreign Law Practices
k. Bank Representative Offices/Insurance Representative Officers/Other Financial Representative Offices (registered with MAS)
l. News Bureaus (which are representative offices)  
m. International Organisations
n. Entities which pay CPF but are not registered in Singapore

Employers can use the JGI calculator to calculate their baseline and check their eligibility for JGI.

How do I apply for or decline 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.

Declining JGI payouts
If you wish to be excluded from all future JGI payouts, please sign up using the Decline JGI form.

Returning JGI payouts

To return a JGI payout that you have received, please return via internet banking fund transfer. IRAS’ bank account details are as follow:

Payee: Commissioner of Inland Revenue

Account Type: DBS Current Account 

Account No.: 0010468669

DBS Swift Code: DBSSSGSG

Under the “Beneficiary Reference / Purpose of Payment / Remittance Information / Payment Details” field, please indicate your business name and purpose (e.g. ABC Pte. Ltd. Decline JGI). This is to facilitate the processing of your return.

When will I receive my JGI payout?

Eligible employers will receive6 JGI payouts starting from March 2021, covering gross wages of new local hires paid in the months shown in the table below.

Qualifying window of new local hires expected to receive payouts: Month where CPF contributions for new local hires from September 2020 to September 2021 is made for: Gross wages for JGI in the month of hire will be derived based on mandatory CPF contributions paid on or before7:Month when JGI payout will be disbursed:
                                                                                      Payout 1
Phase 1 September 2020 14 October 2020 March 2021
October 2020 14 November 2020
November 2020 14 December 2020 
                                                                                      Payout 2
Phase 1 December 2020 14 January 2021 June 2021
January 2021 14 February 2021
February 2021814 March 2021
                                                                                      Payout 3
Phase 1 and 2March 202114 April 2021 September 2021
April 202114 May 2021
May 202114 June 2021
                                                                                      Payout 4
Phase 1 and 2June 202114 July 2021  December 2021
July 202114 August 2021
August 202114 September 2021
                                                                                      Payout 5
Phase 1 and 2September 2021914 October 2021  March 2022
October 202114 November 2021
November 202114 December 2021
                                                                                      Payout 6
Phase 1 and 2December 2021 14 January 2022June 2022  
January 202214 February 2022
       February 2022       14 March 2022
                                                                                      Payout 7
Phase 1 and 2       March 2022       14 April 2022September 2022
       April 2022       14 May 2022
       May 2022       14 June 2022
                                                                                      Payout 8
Phase 1 and 2       June 2022       14 July 2022December 2022
       July 2022     14 August 2022
       August 2022  14 September 2022
                                                                                      Payout 9
Phase 2       September 2022     14 October 2022March 2023
       October 2022  14 November 2022
       November 2022  14 December 2022
                                                                                       Payout 10
Phase 2       December 2022     14 January 2023June 2023
       January 2023    14 February 2023
       February 2023       14 March 2023

Employers selected for review will only receive their payouts after IRAS is satisfied with the outcome of the review.
7 CPF 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.
8 End of eligibility period for new hires for Phase 1. Eligibility period is September 2020 till February 2021. 

9 End of eligibility period for new hires for Phase 2. Eligibility period is March 2021 till September 2021.

How is each payout computed?

The JGI payout is computed on a monthly basis based on the eligible employer’s mandatory CPF contributions.

  • For (i) all new mature local hires aged 40 and above, (ii) all new local PwDs hired (regardless of age) and (iii) all new ex-offenders hired (regardless of age), the Government will co-fund up to 50% of the first $5,000 of gross monthly wages between September 2020 and February 2021.

  • From March 2021 onwards, for (i) all new mature local hires aged 40 and above, (ii) all new local PwDs hired (regardless of age) and (iii) all new ex-offenders hired (regardless of age), the Government will co-fund up to 50% of the first $6,000 of gross monthly wages.

  • For all other new local hires, the Government will co-fund up to 25% of the first $5,000 of gross monthly wages.

To receive the JGI for the full 12 months or 18 months from the month of hire for each new local hire (depending on worker profile), the employer must have qualified for JGI during the eligibility period for each phase (i.e. September 2020 to February 2021, or March 2021 to September 2021), and continually meet the eligibility criteria for the entire payout period. Otherwise, they will receive the JGI only for months where they meet the eligibility criteria. 

Employers that did not meet the eligibility criteria for the JGI at least once in the eligibility period for each phase will not receive the JGI even if they meet the employer eligibility criteria from March 2021 onwards (for Phase 1) or October 2021 onwards (for Phase 2).

 

JGI Adjustment Factor

To encourage employers to retain their existing local employees as far as possible, the JGI payout will be adjusted downwards in the following circumstances:

  • if any existing local employees (in the employer’s employ as at August 2020) leave the employer after August 2020. This applies to local hires employed in Phase 1.

  • if any existing local employees (in the employer’s employ as at February 2021) leave the employer after February 2021. This applies to local hires employed in Phase 2.

  •  The adjustment factor will be higher if more existing local employees leave the employer. 

The adjustment factor is calculated based on the ratio of existing local employees who have left the employer to the total number of existing local employees as at August 2020 or February 2021, or 5%, whichever is higher. The adjustment factor is therefore higher if more existing local employees leave the employer. 

For new hires employed in Phase 1: if new local hires (employed from September 2020 onwards) leave the employer, this does not affect the adjustment factor. However, any JGI attached to such local hires will cease.

For new hires employed in Phase 2: if new local hires (employed from March 2021 onwards) leave the employer, this does not affect the adjustment factor. However, any JGI attached to such local hires will cease.

 

Abuse of JGI

How will the Government detect abuse of JGI? 

The Government takes a serious view on any attempt to abuse the scheme. Offenders may have their JGI payouts denied and can be charged under Section 420 of the Penal Code, where they may face up to 10 years of imprisonment and a fine. To detect possible abuses, the Government has instituted a robust anti-gaming framework leveraging data from multiple sources to identify risks. When ascertaining whether an arrangement is abusive, the Government will consider all relevant facts and circumstances and conduct in-depth verifications where necessary.

IRAS will only release JGI payouts after we are satisfied with the outcome of the review.

Some unacceptable practices include but are not limited to:

  1. Delaying or omitting mandatory CPF contributions for existing employees in the month of August 2020 / February 2021 to reduce the firm’s baseline headcount as of August 2020 / February 2021.

    CPF contributions are payable for Singaporeans and Singapore PRs who are employed under a contract of service, including part-time and casual employees and employees on term employment contracts. It is a criminal offence under the CPF Act for late and/non-payment of CPF contributions. For more details on CPF compliance matters, please find out more at the CPF Board website).

  2. Firing or retrenchment of existing employees and subsequent replacement with new employees

    Employers are encouraged to take a long-term view of their manpower needs, including the need to maintain a strong Singaporean core. When managing excess manpower, retrenchment should always be the last resort after all options have been considered and found to be unworkable.

  3. Transferring employees across business entities

    Employers should not transfer employees without any genuine or commercial basis. The JGI is only for genuine new hires. In general, employee transfers across business entities would not qualify for JGI payments. Any appeals would be granted on a case-by-case basis, and would only be given if IRAS is satisfied that the purpose or effect of any arrangement is not abusive or avoidable, e.g. due to cessation of business operations/functions, where the transferred employee would have been retrenched if not for the transfer.

  4. Artificially splitting the wages of employees across multiple related business entities

    Employers should only make mandatory CPF contributions to employees for the business entities they are working for, instead of artificially splitting the wages of its employees across related business entities to circumvent the JGI wage ceiling.

  5. Making purported mandatory CPF contributions for non-genuine employees

    This is a fraudulent arrangement. Employers should not make any mandatory CPF contributions to individuals who are not their genuine employees. Individuals are reminded that providing their personal information to facilitate such schemes may make them accomplices to the fraud, resulting in criminal liability for the individuals. Individuals should not give out their personal information such as NRIC, SingPass or bank account details in exchange for CPF contributions and/or money.

  6. Making mandatory CPF contributions for purported wages paid without expectation of any work to be done (e.g. solely to fulfill regulatory requirements or quotas, or family members who are not involved in the business)

    Employers should only make mandatory CPF contributions to employees for wages paid for work performed as part of a contract of service.

  7. Increasing purported mandatory CPF contributions for employees without any actual wage increase

    CPF mandatory contributions are based on employees’ wages, age and citizenship. The prevailing CPF contribution rates can be found on the CPF website.

  8. Inflating purported mandatory CPF contributions and deducting these excess contributions from employees’ wages in cash

    This is a fraudulent arrangement. Employers should only make the correct amount of mandatory CPF contributions based on the actual wages paid to their employees.

  9. Making purported mandatory CPF contributions for inflated wages that are not commensurate with the volume or nature of work of the employees

    Employers should only make mandatory CPF contributions to employees for wages paid that are commensurate with the volume or nature of work of the employees, instead of making purported mandatory CPF contributions based on inflated wages to increase the amount of JGI subsidy.

  10. Continuing purported mandatory CPF contributions for employees who have been retrenched or put on no-pay leave

    Employers should stop making mandatory CPF contributions for employees who have been retrenched or are on no-pay leave. However, employers can continue to make voluntary CPF contributions to the CPF accounts of employees on no-pay leave by applying for a separate CPF submission number with CPF Board. (For more details on making voluntary CPF contributions for employees, please find out more at the CPF Board website).

  11. Maintaining purported mandatory CPF contribution amounts based on past wages for employees who have suffered wage cuts

    CPF mandatory contributions are based on employees’ wages, age and citizenship. A wage cut on the employees’ part should see a corresponding decrease in the mandatory CPF contributions. However, employers can continue to make voluntary CPF contributions to the CPF accounts of employees whose wages have been cut by applying for a separate CPF submission number with CPF Board.(For more details on making voluntary CPF contributions for employees, please find out more at the CPF Board website).

 

Businesses or individuals who wish to report to IRAS any malpractices or potential abuses of the JGI may do so via email to jgireport@iras.gov.sg or online at go.gov.sg/jgireport. IRAS will ensure that the identities of informants are kept strictly confidential.

Contacting IRAS

If there are queries that have not been addressed on this site, please enquire via go.gov.sg/jgiask. For urgent assistance, you may call 6351 3566 between 8 am and 5 pm from Monday to Friday. We seek your understanding if the waiting time takes longer than usual.

FAQs