Jobs Growth Incentive Scheme to be extended till March 2022

NewsOctober 14, 2021 14:47

The Jobs Growth Incentive (JGI) scheme that was first introduced in September last year is being extended till March 2022.

The $1 billion scheme was first introduced by Minister Heng Swee Keat to boost the hiring of local employees with a focus on helping older workers. Companies that increase their local workers' headcount over a 6 month period receive a subsidy for up to 25 percent of their wages for 1 year, subject to a cap. Growth firms that meet the qualifying criteria could also apply. The Government also co-pay up to 50 percent for employees aged 40 and above to support businesses and workers during the COVID-19 crisis.

 

A further extension of JBI to support the hiring of local workers

This is the second extension of the JBI, with the first extension to September this year. As of May, the scheme has supported the hiring of about 400,000 locals by 58,000 companies. There was a spike of 128,000 JGI-supported hires as of February as well. Most of the businesses were small and medium enterprises with half of them hiring one to two local staff while the remaining hired more. Currently, approximately 4 in 10 hires worked in growth sectors (information and communications, wholesale trade, and professional services) while 1 in 5 workers hired was in recovering retail and food services sectors. 6 in 10 hires were also previously employed in different sectors and earned the same or higher wages compared to their previous jobs. Close to 50 percent of the hires were middle-aged workers from 40 years and above while one-third were mature hires above 50 years old.

The qualifying period for this extension will stretch from October till March 2022 to bolster recovery in an improving labor market and support firms in expanding their local hiring. Support levels will however be tapered down in view with the improving job market. From October onwards, eligible firms will receive salary support of 15 percent for the first $5000 for up to six months and up to $4500 per hire for workers below 40 years of age. For mature workers above 40 years old,ex-offenders, and people with disabilities, the wage support will go up to 50 percent of the first $6000 for up to a year, subject to a cap of $36,000 per hire.

 

Encouraging Employers to bring forward hiring and to keep an open mind towards local workers

“The JGI-eligible employers have continued to hire from a wide pool of job seekers...I'm very encouraged to observe that our employers continue to keep an open mind when it comes to hiring, and they have the confidence in the ability of our workers to adapt to the changing environment and job demands," said Manpower Minister Tan See Leng. He also called for companies with growth plans to bring forward hiring instead of waiting for further extensions of the JBI.

 

How has the JGI scheme benefitted your company so far? Does it encourage you to hire more locals, particularly mature hires or mid-career workers from different sectors?