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Jobs Growth Incentive (JGI)

The Jobs Growth Incentive (JGI) supports employers to accelerate their hiring of local workforce1 over the next six months, from September 2020 to February 2021 (inclusive), so as to create good and long-term jobs for locals.

The JGI will provide one year of salary support for each new local hire by employers that managed to increase their local workforce from September 2020 to February 2021 (inclusive).

1 Local workforce: Singapore Citizens and Singapore Permanent Residents.


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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) of the first $5,000 of gross monthly wages2 paid to all new local hires3. 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.

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

3 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 will not be eligible for the JGI if they start receiving salary from September 2020 onwards. 

Five things you need to know about the JGI

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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.

The following employers are not eligible for the JGI

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, 47.9KB) to calculate their baseline and check their eligibility for JGI.

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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

.

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When will I receive my JGI payout?

Eligible employers will receive3 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 before4: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 2021514 March 2021
Payout 3
March 202114 April 2021 September 2021
April 202114 May 2021
May 202114 June 2021
Payout 4
June 202114 July 2021  December 2021
July 202114 August 2021
August 202114 September 2021
Payout 5
September 202114 October 2021  March 2022
October 202114 November 2021
November 202114 December 2021
Payout 6
December 2021 14 January 2022May 2022
January 202214 February 2022

3 Employers selected for review will only receive their payouts after IRAS is satisfied with the outcome of the review.
4 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.
5 End of eligibility period for new hire. Eligibility period is September 2020 till February 2021. 

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How is each payout computed?

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

  • For all new mature local hires aged 40 and above, 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.

Illustration for computing JGI payouts


Example 1: September 2020 – Company A meets the eligibility criteria for JGI and did not incur any JGI adjustment factor

Example 1 JGI

  • Local employees hired in August 2020 will be considered in the baseline workforce and will not qualify for the JGI payouts
  • Part-time local workers hired by JGI-eligible companies can qualify for the JGI

Example 2: October 2020 – Company A meets the eligibility criteria for JGI and incurs the JGI adjustment factor as an original existing employee in August left in October

Example 2 JGI
  • The JGI adjustment factor will be adjusted if E4 or E5 is re-hired in subsequent months. 

Example 3: November 2020 – Company A is not eligible for the JGI

Example 3 JGI
  • Employers that fulfil only one condition are not eligible for the JGI

Example 4: March 2021 – Company A hires one new hire after the qualifying window for new hires

Example 4 JGI

Example 5: September 2021 – New local employees hired in Sep 2020 by Company A will no longer receive JGI

Example 5 JGI

 

 

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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.

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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.

 

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FAQs

  • Eligibility criteria and application

    • 1. How do I compute my employer’s baseline headcount and know if my employer is eligible for the JGI?

      Baseline computation

      The baseline headcounts of (i) local workforce and (ii) local workforce earning at least $1,400 is computed based on August 2020. This is determined using mandatory CPF contributions made for the month of August 2020 for local employees by 14 September 2020.

      Eligibility

      The eligibility period for new local hires is from September 2020 to February 2021 (inclusive).
      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.

      You may wish to compute your employer’s baselines using the JGI calculator (XLSX, 30.5KB) while referencing examples below. 

      Example 1 – Employers that meet the eligibility criteria for JGI

        Number of local employees based on mandatory CPF contribution
      Number of local employees in August 2020 [A]      
      Wages for month in August 2020
      Mandatory CPF contribution made on or before: 14 September 2020
      Number in local workforce 4
       

      Employer had 4 local employees in August 2020.

      A = 4

       
      Number of local employees earning at least $1,400 in gross monthly wages in August 2020 [B]    
      Wages for month in August 2020
      Mandatory CPF contribution made on or before: 14 September 2020
      Number in local workforce 4
      Gross monthly wages

      $1000

      $1000

      $1400

      $1400

       

      Employer had 2 of the local employees earned at least $1,400 in August 2020.

      B = 2

       
      Number of local employees in September 2020 [C]  
      Wages for month in August 2020 September 2020
      Mandatory CPF contribution made on or before: 14 September 2020 14 October 2020
      Number in local workforce 4 5
      Gross monthly wages

      $1000

      $1000

      $1400

      $1400


      $1000

      $1000

      $1400

      $1400

       
      • There is 1 new local employee hired in September 2020
      		$1400
       

      In this example, the employer hired one additional local employee in September 2020, making it a total of 5 local employees.

      C = 5

      Number of local employees earning at least $1,400 in September 2020 [D]

      In this example, there were 3 local employees earning at least $1,400 in the month of September 2020.  

      D = 3

      Eligibility check: eligible for JGI if

      [C] – [A] > 0 AND

      [D] – [B] > 0

      		[C] – [A] = 5 – 4 = 1

       

         

        Condition (2): Increased its local workforce earning at least $1,400 by 1

        [D] – [B] = 3 – 2 = 1

           

           

          Example 2 – Employers that did not meet the eligibility criteria for JGI

            Number of local employees based on mandatory CPF contribution
          Number of local employees in August 2020 [A]      
          Wages for month in August 2020
          Mandatory CPF contribution made on or before: 14 September 2020
          Number in local workforce 4
           

          Employer had 4 local employees in August 2020.

          A = 4

           
          Number of local employees earning at least $1,400 in gross monthly wages in August 2020 [B]    
          Wages for month in August 2020
          Mandatory CPF contribution made on or before: 14 September 2020
          Number in local workforce 4
          Gross monthly wages

          $1000

          $1000

          $1400

          $1400

           

          Employer had 2 local employees earning at least $1,400 in August 2020.

          B = 2

           
          Number of local employees in September 2020 [C]  
          Wages for month in August 2020 September 2020
          Mandatory CPF contribution made on or before: 14 September 2020 14 October 2020
          Number in local workforce 4 5
          Gross monthly wages

          $1000

          $1000

          $1400

          $1400


          $1000

          $1000

          $1000

          $1000

           
          • There is 1 new local employee hired in September 2020
          		$1400
           

          In this example, the employer hired one additional local employee in September 2020, making it a total of 5 local employees. But the wages for 2 of its existing employees were reduced to $1,000 a month from $1,400 a month.

          C = 5

          Number of local employees earning at least $1,400 in September 2020 [D]

          In this example, there was 1 local employee earning at least $1,400 in the month of September 2020.  

          D = 1

          Eligibility check: eligible for JGI if

          [C] – [A] > 0 AND

          [D] – [B] > 0

          The employer in this example is not eligible for the JGI as it did not achieve an increase in local employees earning at least $1,400 a month in September 2020.

           

          Condition (1): Increased its local workforce by 1

          [C] – [A] = 5 – 4 = 1

             

            Condition (2): Decrease in local workforce earning at least $1,400

            [D] – [B] = 1 – 2 = -1

               
            • 2. If my employer meets the JGI eligibility criteria in September 2020 but not in October 2020, will the JGI be computed for my new local hires in September in the month of October?

              No, JGI will be computed only for the months where the employer meets the employer eligibility criteria.

            • 3. My employer hired 1 new local employee in each month for September, October and November. We met the eligibility criteria for the months of September and November but not for October. How will the JGI be computed?

              The JGI will be computed this way, assuming that person A, B and C do not leave:

                September
              2020               		October
              2020               		November
              2020
              New local hire Person A Person B Person C
              Employer met eligibility criteria in relevant month YES NO YES
              JGI computed for the relevant month Person A No JGI as employer was not eligible Person A, B and C

               

              The employer would not be able to enjoy the full 12 months of JGI for Person A and Person B as the JGI would be provided till August 2021 and September 2021 respectively (12 months from September 2020 and October 2020 respectively).

            • 4. Must I maintain the wages of my existing local employees while JGI is in effect? Similarly, must I maintain the wages of my new local hires while JGI is in effect?

              In general, employers should ensure that they pay fair wages to their employees. As there may be legitimate reasons where wages are adjusted, it is not a requirement for employers to maintain the wages of their existing local employees or new local employees in order to be eligible for the scheme, subject to meeting the eligibility criteria.

              However, employers should note that downward wage revisions may affect the employer’s JGI payouts in the affected months.

            • 5. Why do I have to increase my local workforce that is earning at least $1,400 a month? I have already increased the size of my overall local workforce.

              The purpose of JGI is to bring about creation of good and long-term jobs, to ensure that local employees are employed meaningfully. $1,400 a month is pegged to the Local Qualifying Salary for employers to hire foreign workers and covers more than 90% of full-time employed residents.

            • 6. The overall size of my employer did not increase but my employer increased the number of local employees and had an increase in number of local employees earning at least $1,400 a month. Is my employer still eligible for the JGI payout?

              Yes. Employers will be eligible as long as they increase the size of their local workforce. This includes employers which are able to hire more local hires even as they reduce or leave unchanged their overall workforce, i.e. had fewer foreign workers.

              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.

            • 7. Why are employers who are new (i.e. incorporated on or after 17 August 2020), or dormant not eligible for the JGI?

              This allows us to target JGI at growing employers that had business activity before the JGI was introduced.

            • 8. I am an employer with business activity in August 2020, but did not have any employees in August 2020. Am I eligible for the JGI?

              Yes, employers with no employees in August 2020 (based on mandatory CPF contributions made for the month of August 2020) would be eligible for the JGI if they fulfil the eligibility criteria for the JGI.

          • Computation of baselines and local workforce

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