The Jobs Credit Scheme was introduced to encourage businesses to preserve jobs in the downturn. Businesses in operation that have made Central Provident Fund (CPF) contributions for their employees (Singaporeans and Permanent Residents only), with the exception of local and foreign government organisations, will be eligible for the Jobs Credit and receive a cash grant based on the CPF contributions they have made for their existing employees.

The Jobs Credit is automatically granted to eligible employers and will be paid in 2009 in four payments. They do not need to apply for it. The Jobs Credit is calculated based on 12% of the first S$2,500 of the derived wage cost for each eligible employee on the employer's CPF payroll. This means the employer will receive up to S$900 per employee for each payment (12% x S$2,500 x 3 months).

The qualifying periods for each payment and the corresponding payment dates are as follows:

Qualifying period of wages to compute Jobs Credit

Deadline by which employers need to make CPF contributions

Jobs Credit payment date

Oct 08 to Dec 08

14 Feb 09, on employees' Jan 09 salary

31 Mar 09

Jan 09 to Mar 09

14 May 09, on employees' Apr 09 salary

30 Jun 09

Apr 09 to Jun 09

14 Aug 09, on employees' Jul 09 salary

30 Sep 09

Jul 09 to Sep 09

14 Nov 09, on employees' Oct 09 salary

31 Dec 09

The Jobs Credit will be computed based on the employer's CPF contribution data, which will be provided by CPF Board to IRAS. IRAS will send a letter to all eligible employers informing them of the Jobs Credit payment in the last week of March 2009 for the first payment. The Jobs Credit will be credited directly into their GIRO bank accounts or sent to them by cheque by 31 March 2009.