SINGAPORE - Firms that hire more locals in the next six months could get up to $15,000 for each worker below 40 years old and up to $30,000 each for older workers under the new $1 billion Jobs Growth Incentive scheme.
Announcing the details in a joint statement on Friday (Sept 4), the Ministry of Manpower (MOM) and the Inland Revenue Authority of Singapore (Iras) said the payouts, to be made over 12 months from March next year, will be automatically computed each month based on the firm's Central Provident Fund contributions.
For the first 12 months, the Government will co-pay 25 per cent of the first $5,000 of gross monthly wages for each new local hire below 40. This will double to 50 per cent for each of those aged 40 and above.
The scheme 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 Jobs Support Scheme, which will cover wages paid up to March next year.
To be eligible for the Jobs Incentive Scheme, firms must increase the headcount of their local workforce between this month and next February, compared with August, said MOM and Iras.
They must also increase the number of jobs that pay at least $1,400 in gross monthly wages.
The scheme will only apply to firms that were set up on or before Aug 16.
To receive the full amount of support, firms must continue to meet the eligibility criteria for the 12-month period.
The payout will be reduced if any of the employees hired as of August leave the firm.
"This reduction will be computed based on the ratio of existing employees who have left the employer to the total number of existing employees as at August 2020, or 5 per cent, whichever is higher," said MOM and Iras.
MOM and Iras added that the Jobs Growth Incentive scheme is a "step up" in terms of the level of salary support compared with the Enhanced Hiring Incentive announced earlier in May, and will replace the latter from Sept 1.
Firms can visit Iras' website for more information.