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 programmes . 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.
The Hiring Incentive was enhanced from 27 May 2020 onwards, as part of the SGUnited Jobs and Skills package, where the Enhanced Hiring Incentive applies to any hire from eligible reskilling and training programmes.
Eligible employers will receive the following funding support:
- Employers that hire a local worker aged 40 and above who had gone through an eligible reskilling or training programme can receive salary support of 40% for 6 months, capped at $12,000 in total
- Employers that hire a local worker aged below 40 who had gone through an eligible reskilling or training programme can receive salary support of 20% for 6 months, capped at $6,000 in total.
Reskilling and training programmes that are eligible for the Enhanced 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) was introduced to provide 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 has replaced the Enhanced Hiring Incentive since 1 Sep 2020, and the Enhanced Hiring Incentive had ceased on 31 Aug 2020. Further enhancements to JGI support was announced by DPM Heng during Budget 2021 on 16 Feb 2021, as follows:
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 Sep 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% for 18 months.
More information on the JGI is available on IRAS’ website (go.gov.sg/jgi).
Although the Enhanced Hiring Incentive had ceased, 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.
How to apply for Hiring Incentive/Enhanced Hiring Incentive
From 22 Jan 2021 onwards, eligible employers are invited to apply for their Hiring Incentive/Enhanced Hiring Incentive for placements under Professional Conversion Programmes and Rank-and-File Place-and-Train programmes via https://go.gov.sg/apply-hiring-incentive, or by scanning the QR code below. For employers with new hires who had gone through other reskilling and training programmes (e.g. SGUnited Traineeships Programme, SGUnited Mid-Career Pathways Programme and SGUnited Skills programmes), they may contact WSG at 6883 5885 for enquiries on how to apply.
Do note that eligible employers refer to those who have hired local workers during the qualifying periods below and where the same workers have gone through the eligible reskilling or training programmes. The 6-month period for qualifying for the Hiring Incentive starts only upon the end of the programme, hence the employee (if eligible) will need to be retained by the company after he/she completes the programme. Eligible employers will then receive the Hiring Incentive/Enhanced Hiring Incentive in the form of salary support for the 6-month period after the completion of the programme.
Employee’s date of hire at the company
1 Apr 2020 - 26 May 2020
(only for local workers aged 40 and above)
27 May 2020 - 31 Aug 2020
Enhanced Hiring Incentive
When applying for the Hiring Incentive/Enhanced Hiring Incentive, employers will be required to provide the details and supporting documents of the local workers who were hired during the qualifying periods and had gone through the eligible programmes to validate the application.
Employers are strongly encouraged to check with the relevant programme partner or WSG if they are unsure whether they can qualify for the Hiring Incentive/Enhanced Hiring Incentive.
Deadline for applications
Applications from employers must not be later than 6 months from claim eligibility*.
For instance, if the eligible employee has completed the 6-month Hiring Incentive/Enhanced Hiring Incentive retention period on 1 Feb 2021, the deadline for the company’s application is 1 Aug 2021. Applications that are submitted later than 6 months from claim eligibility will be rejected. However, this excludes claims that were eligible before the HI/EHI application window opened on 22 January 2021. For such cases the deadline for applications will be 6 months after 22 January, i.e. 22 July 2021.
^ The deadline for applications will be 6 months after 22 January 2021, as this is an eligible claim before the HI/EHI application window opened on 22 January 2021.
*The last day of the application window is 1 Aug 2021, which is 6 months from claim eligibility date (1 Feb 2021).
For more information, download the Factsheet and FAQs.