The Hiring Incentive was first introduced as part of the SkillsFuture Mid-Career Support Package (SMCSP) in the Unity Budget, to provide salary support for employers who hire local mid-career workers aged 40 and above through eligible reskilling programmes1. This is an additional provision for employers who hire and train mature workers through reskilling programmes. Reskilling programmes enable and support mature workers to remain competitive and enter jobs or sectors that have good prospects even as the economy and employers transform. Employers will also benefit from acquiring a skilled worker that has undergone proper training and has a wealth of working experience.
From 27th May 2020 onwards, as part of the SGUnited Jobs and Skills package, the Enhanced Hiring Incentive will be applicable to any hire from eligible reskilling and training programmes.
Eligible employers will receive the following funding support:
Reskilling and training programmes that are eligible for the Hiring Incentive are:
Replacement of Enhanced Hiring Incentive with the Jobs Growth Incentive with effect from 1 Sep 2020
As announced by DPM Heng on 17 Aug 2020, the Jobs Growth Incentive (JGI) has been introduced to provide broad support to companies to encourage them to hire more Singaporeans and provide more good jobs amidst the current labour market. As part of the Government’s continued effort to streamline the incentive schemes, JGI will replace the Enhanced Hiring Incentive with effect from 1 Sep 2020.
a. Under the JGI, the Government will co-pay up to 25% of salaries of all new local hires between Sep 2020 (where the JGI will take effect) to Feb 2021 for one year, subject to a cap.
b. For those aged 40 and above, the co-payment to employers will be up to 50%.
More information on the JGI is available on IRAS’ website.
Although the JGI will replace the Hiring Incentive/Enhanced Hiring Incentive scheme with effect from 1 Sep 2020, companies that have hired local employees on reskilling programmes from 1 April 2020 to 31 Aug 2020, will still benefit from the Hiring Incentive/Enhanced Hiring Incentive. More details of how to apply for the Hiring Incentive/Enhanced Hiring Incentive will be released at a later date.
1 Eligible reskilling programmes were Professional Conversion Programmes and Rank-and-File Place-and-Train Programmes under the Adapt and Grow initiative, as well as career transition programmes at Continuing Education and Training Centres under the SkillsFuture initiative.
2Singapore Citizens and Permanent Residents.