SINGAPORE: The Jobs Growth Incentive (JGI), which helps companies hire more locals, will be extended for six months until March 2022, the Ministry of Manpower announced on Friday (September 24).
This is “to secure recovery in an improving labor market,” MOM said in a press release.
But support levels will be reduced “as conditions improve,” Manpower Minister Tan See Leng said on Friday.
JGI started about a year ago, offering grants of up to a quarter of the first S $ 5,000 earned by an eligible employee for up to 12 months.
To be eligible, the company must increase its overall local workforce and the number of resident workers earning at least S $ 1,400.
In the 2021 budget, the program was extended until September of this year and subsidies were increased for middle-aged workers, disabled workers and ex-offenders.
It will now continue for another six months until March 2022, but salary support will be lowered.
For a new local hire under 40, companies will receive 15 percent of the first S $ 5,000 of a worker’s salary for up to six months. The total incentive is capped at S $ 4,500 per rental.
For workers over 40, people with disabilities and ex-offenders, the program will cover half of their wages up to S $ 6,000 for up to 12 months. The total incentive is capped at S $ 36,000 per worker.
Dr Tan stressed that the JGI is “an extraordinary measure, not a steady state”.
“I would like to encourage employers who have growth plans to step up and speed up the hiring of locals, and to do so during the extended qualifying period,” he said after a visit to Alcon, a manufacturer of eye care products.
NEARLY 400,000 JGI RECRUITS
From September 2020 to May this year, nearly 400,000 locals were hired by 58,000 companies supported by JGI, MOM said.
Almost all (99 percent) of these businesses were small and medium-sized businesses. About half of the companies hired one to two local workers, while the rest hired more, MOM said.
Companies operate in a variety of sectors including wholesale trade, professional services, information and communications, food services, and retail.
Half of the 400,000 hires supported by JGI to date were not employed at the time of hiring and about a third had been out of work for more than six months, MOM said. About six in ten people previously worked in a different industry.
Almost half were mature workers aged 40 and over, and a third were 50 and over. Six in ten were earning a salary equal to or higher than their previous job.
“I am very encouraged to see that our employees continue to have an open mind when it comes to hiring and have confidence in the ability of our workers to adapt to the changing environment and demands. labor, ”said Dr Tan.