On 4 March 2022, Dr Koh Poh Koon, Senior Minister of State for Manpower, announced in his speech at Committee of Supply 2022 that the Job Growth Incentive (JGI) scheme will be further extended to September 2022. The scheme’s new 4th phase is effective from April 2022 to September 2022.
This extension phase will only be applicable to mature workers aged 40 and above who have been unemployed for at least six months, persons with disabilities and ex-offenders. This support which was previously 50% of the first $6,000 of gross monthly wages, will now be reduced to 40% of the first $6,000 of gross monthly wages for the first six months, and 20% of the first $6,000 of gross monthly wages for the subsequent six months.
What is the Jobs Growth Incentive (JGI) scheme?
The JGI scheme is an Inland Revenue Authority of Singapore’s (IRAS) co-pay scheme aimed at incentivizing employers who hire local applicants by providing substantial salaries support at all wage levels. This scheme encourages employers to create good, long-term employment opportunities for Singapore Citizens and Permanent Residents. The JGI scheme has now been rolled out in four phases:
- 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
How may companies apply for the Jobs Growth Incentive (JGI) scheme?
Potential eligible companies will receive letters from IRAS requesting for a self-review of Central Provident Fund (CPF) contributions, and provide declarations to substantiate their eligibility. Successful companies will then receive their JGI scheme’s payouts automatically. Payouts are computed each month, based on the respective CPF contribution.
Summary of Previous and Current JGI Scheme Phases
For more information, please refer to IRAS’s website:
https://www.iras.gov.sg/schemes/disbursement-schemes/jobs-growth-incentive