MOM Extends the Jobs Growth Incentive to Boost Local Hires

In an effort to give companies a leg up in expanding their local workforce, the Ministry of Manpower (MOM) will extend the Jobs Growth Incentive (JGI) to March 2022.

The ministry announced the extension on 24 September 2021.

According to MOM, the JGI extension will continue to benefit more workers, beyond the 400,000 locals hired by some 58,000 businesses during the period of September 2020 to May 2021.

Ninety-nine per cent of the JGI supported hires were from small and medium sized enterprises.

NTUC Assistant Secretary-General Desmond Choo said the extension is timely to help maintain the momentum of companies hiring more workers during recovery from the pandemic.

He said: “The recovery is fraught with uncertainties and the JGI can help to manage cash flow risks much better. This will help more workers get jobs.”

Extended but Tapered Down

In view of the improving economic situation, MOM will be reducing the support levels provided by the JGI.

“The JGI remains an extraordinary measure and not a permanent scheme. MOM encourages employers with hiring plans to make full use of the extended qualifying period,” said the ministry.

Mr Choo said that the reduction of support in line with the labour market recovery.

“The Labour Movement will continue to monitor the progress closely and advocate for any further extensions as we have done so for this current one,” he said.

From October 2021 to March 2022, employers who meet the JGI eligibility criteria will receive:

• A six-month wage support of up to 15 per cent for the first $5,000 gross monthly salary of any new local hire below the age of 40;
• A 12-month wage support of up to 50 per cent for the first $6,000 gross monthly salary of any new local hire above the age of 40, or who is a person with disability (PwD), or who is an ex-offender.

JGI Supported Hires

Some 4 in 10 of the supported hires between September 2020 to May 2021 were in growth sectors such as wholesale trade, professional services, and information & communications. 1 in 5 were from recovering sectors such as food services and retail.

MOM’s data also showed that:

• Half of the supported hires to-date were not employed when they were hired;
• A third of them were out of work for more than six months;
• Approximately 60 per cent of hires were previously from different sectors;
• Close to 50 per cent of the hires were above 40, and around 33 per cent were above 50;
• Around 60 per cent of the hires earned identical or higher wages compared to their previous employments.

“We encourage jobseekers to stay resilient, keep an open mind to new opportunities and consider less familiar roles.

“Jobseekers who require assistance with their job search can approach Workforce Singapore (WSG) and NTUC’s Employment and Employability Institute (e2i), as well as our appointed SGUnited Jobs and Skills Placement Partner, Adecco Personnel Pte Ltd,” said MOM.

More information about the JGI can be found here.