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SINGAPORE – Businesses that hire more locals in the next six months could get up to $ 15,000 for each worker under age 40 and up to $ 30,000 each for older workers under the new $ 1 billion Incentive for Growth Job.
Announcing the details in a joint statement on Friday (September 4), the Ministry of Manpower (MOM) and the Singapore Internal Revenue Authority (Iras) said that the payments, which will be made over 12 months from March next year, they will be calculated automatically. each month based on contributions to the company’s Central Provident Fund.
During the first 12 months, the Government will co-pay 25 percent of the first $ 5,000 of gross monthly wages for each new local employee under the age of 40. This will double to 50 percent for each age 40 and over.
The plan was first announced by Deputy Prime Minister Heng Swee Keat in August to boost the hiring of local workers in growth sectors, in addition to wage subsidies under the Employment Support Plan, which will cover wages paid up to March next year.
To be eligible for the Work Incentives Program, companies must increase their local workforce headcount between this month and next February, compared to August, MOM and Iras said.
They must also increase the number of jobs that pay at least $ 1,400 in gross monthly wages.
The scheme will only apply to companies that were established on or before August 16.
To receive the full amount of support, businesses must continue to meet the eligibility criteria for the 12-month period.
The payment will be reduced if any of the employees hired from August leaves the company.
“This reduction will be calculated based on the ratio of existing employees who left the employer to the total number of existing employees in August 2020, or 5 percent, whichever is greater,” MOM and Iras said.
MOM and Iras added that the Job Growth Incentive scheme is a “step forward” in terms of the level of salary support compared to the Enhanced Hiring Incentive announced in early May, and will replace the latter as of May 1. September.
Companies can visit the Iras website for more information.
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