• Up to 25 per cent of wages for new local hires will be co-paid by the Government for a year, subject to a cap
• Government will co-pay up to half of the wages for new hires above 40
• The Covid-19 Support Grant will be extended to December this year

SINGAPORE — A new S$1 billion programme will be launched to create new jobs, especially for mature workers, Deputy Prime Minister Heng Swee Keat said on Monday (Aug 17).

The Jobs Growth Incentive will support companies when they hire local employees over the next six months, by subsidising the salaries of all these new local hires in firms that qualify for one year, subject to a cap.

For new local hires aged 40 and above, the Government will co-pay up to half of their salaries. For younger local hires, the subsidy will be up to 25 per cent of the salaries, subject to a cap.

More details on the new scheme will be provided by the Manpower Ministry later this month.

Mr Heng, who is also Finance Minister, announced the new initiative during a ministerial statement on Monday in which he outlined how the Government will continue to support workers and businesses during the Covid-19 pandemic.

EXTENDING SUPPORT GRANTS

Mr Heng also announced that the Government will be extending the Covid-19 Support Grant to accept applications until December this year. 

The grant was launched in May to help Singaporeans who are unemployed or have suffered significant income loss due to the coronavirus outbreak. Applications were initially open until Sept 30.

From Oct 1, both existing recipients of the grant as well as new applicants can apply for the scheme.

Unemployed applicants must demonstrate job search or training efforts in order to qualify, said Mr Heng.

The Minister of Social and Family Development will provide more details in early September.

To support low wage workers, Mr Heng also announced that the authorities will widen the eligibility criteria for the S$3,000 Workfare Special Payment to include workers who were not on Workfare last year but have received or will be receiving Workfare for work done this year.

Said Mr Heng: “Even with our best efforts, retrenchments will be inevitable… We cannot protect every job, but we will protect every worker.

“For those of you who have fallen on hard times, we will continue to support you and walk this journey with you.”

Despite the overall gloom over the economy, Mr Heng noted that there have been some sectors in Singapore that are doing well, and there are firms in these sectors that are still hiring.

“Our biomedical sciences, financial services and ICT (information and communications technology) sectors continue to need more workers,” he said.

“The public healthcare and long-term care sectors are hiring. Some firms in the food and beverage and manufacturing sectors are growing and innovating.”

He noted that 24 SGUnited Jobs and Skills Centres have been set up in the heartlands to help workers by matching them to new opportunities.

“I encourage job seekers to visit these centres and make the best of the resources available, to find a suitable job, traineeship attachment or training,” said Mr Heng. “This way, you are better prepared when the job market recovers.”