What is the JGI?
Employers that increase their overall local workforce between September 2020 to February 2021 (inclusive) will receive Government support. To be eligible for the JGI, there must be an increase in overall local workforce size AND increase in local workforce size earning ≥$1,400/month, compared to the August 2020 local workforce. The support is 25% (or 50% for mature local hires aged 40 and above, all persons with disabilities (PwDs)2 or ex-offenders3) of the first $5,000 of gross monthly wages4 paid to all new local hires5.
Government support will be for 12 months from the month of hire, 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 if any existing local employees (in the employer’s employ as at August 2020) leave the employer after August 2020. The adjustment factor will be higher if more existing local employees leave the employer.
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 to further substantiate their eligibility.
Eligible employers will start receiving the first JGI payout from March 2021 onwards.
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Who is eligible for the JGI?
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 to be eligible.
To receive the JGI for full 12 months from the month of hire for each new local hire, the employer must have qualified for JGI during the eligibility period, (i.e. September 2020 to February 2021) and continually meet the eligibility criteria for the entire payout period, i.e. September 2020 to January 2022.
a. Employers established on or after 17 August 2020
b. 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.
c. Local Government Agencies including Organs of State, Ministries and Departments, Statutory Boards
d. Government and Government-Aided Schools
e. PA Services and Grassroot Units
f. High Commissions, Embassies, Trade Offices, Consulate
g. Unregistered Local/Foreign Entities
h. Foreign Military Units
i. Representative offices of:
I. Foreign companies
II. Foreign Government Agencies
III. Foreign Trade Associations/ Foreign Chambers/ Foreign Non-profit Organisations
IV. Foreign Law Practices
j. Bank Representative Offices/Insurance Representative Officers/Other Financial Representative Offices (registered with MAS)
k. News Bureaus (which are representative offices)
l. International Organisations
m. Entities which pay CPF but are not registered in Singapore
Employers can use the
JGI calculator (XLSX, 46.7KB) to calculate their baseline and check their eligibility for JGI.
How do I apply for 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
.
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.
Month where CPF contributions for new local hires from September 2020 to February 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 |
September 2020 | 14 October 2020 | March 2021
|
October 2020 | 14 November 2020 |
November 2020 | 14 December 2020 |
Payout 2 |
December 2020 | 14 January 2021 | June 2021 |
January 2021 | 14 February 2021 |
February 20218 | 14 March 2021 |
Payout 3 |
March 2021 | 14 April 2021 | September 2021 |
April 2021 | 14 May 2021 |
May 2021 | 14 June 2021 |
Payout 4 |
June 2021 | 14 July 2021 | December 2021 |
July 2021 | 14 August 2021 |
August 2021 | 14 September 2021 |
Payout 5 |
September 2021 | 14 October 2021 | March 2022 |
October 2021 | 14 November 2021 |
November 2021 | 14 December 2021 |
Payout 6 |
December 2021 | 14 January 2022 | May 2022 |
January 2022 | 14 February 2022 |
6 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 hire. Eligibility period is September 2020 till February 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;
- For all other new local hires, the Government will co-fund up to 25% of the first $5,000 of gross monthly wages.
The employer must continually meet the eligibility criteria for the entire 12-month period in order to receive the JGI for the full 12 months for each new local hire employed in the eligible period from September 2020 to February 2021 (inclusive). Otherwise, they would receive the JGI for months where they meet the eligibility criteria. Employers that did not meet the eligibility criteria for the JGI at least once from September 2020 to February 2021 (inclusive) will not receive the JGI even if they meet the employer eligibility criteria from March 2021 onwards.
JGI Adjustment Factor
To encourage employers to retain their existing local employees as far as possible, the JGI payout will be adjusted downwards if any existing local employees (in the employer’s employ as at August 2020) leave the employer after August 2020.
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 5%, whichever is higher. The adjustment factor is therefore higher if more existing local employees leave the employer. 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.
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.
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 a.m. and 5 p.m. from Monday to Friday. We seek your understanding if the waiting time takes longer than usual.