The JGI, which offers pay assistance to individuals who qualify, benefits both employers and workers. As long as they meet the requirements, your new local employee may be eligible for 50% pay assistance for those over 40 years old and 25% salary support for those under 40 years old. When it comes to the Job Growth Incentive then there are a number of things that you will need to understand. Let us have a better view of the whole process and understand how it all works.
Employers that have made their CPF payments on time and have grown their local employment from February 2021 to March 2021 to September 2021 (inclusive) are eligible for JGI wage assistance, which is a tax credit. In order to get the best results, the following are essential:
The Jobs Growth Incentive (JGI) may be of use to you.
With the Jobs Growth Incentive (JGI), which offers employers a 15 percent to 50 percent pay rise for new workers employed between September 2020 and March 2021, the government hopes to spur job creation. The amount of financial assistance that an employee gets is related to his or her age. Third phase JGI wage help for new local workers will extend to six months for those under 40 (down from twelve months previously) and up to eighteen for those over 40, PwDs, and ex-offenders (a reduction from the previous twelve months). There is a $5,000 wage cap for new recruits who are under the age of 18 and $6,000 for new hires who are adults, persons with disabilities, or ex-inmates, respectively.
Employers that want to employ or grow are encouraged to do so in order to get wage assistance from the Joint Governmental Initiative. Singaporeans and Singapore Permanent Residents are eligible for financial assistance under the JGI program (PRs).This can only happen if the number of people employed in the area increases significantly.
Secondly, the number of local workers earning at least $1,400 per month is required
The employer must have been eligible for JGI throughout the eligibility period in order to receive the full 12 months of JGI for each new local employee following the month of employment. Employers must also meet the qualification levels after September 2021 and before January 2022.
Job Growth Incentive (JGI) Phase 3
Non-mature local recruits’ salary will be reimbursed for up to six months during Phase 3 (October 2021 to March 2022). Workers who are mature, handicapped, or ex-offenders will get up to a year’s earnings in Phase 3 of the scheme.
Beyond the JGI, there may be further compensation
Companies may claim up to 45 percent of salary support for up to 18 months when SCALA’s WSG Professional Conversion Program for Logistics & Supply Chains is used to train new personnel hired between March 1, 2021 and December 31, 2020.
95% of the time, a new employee recruited by your business will be eligible for some kind of pay aid (Subjected to respective caps in JGI and PCP).