Singapore Jobs Support Scheme (JSS) Eligibility Requirements Explained

Against the backdrop of the COVID-19 pandemic's impact on the global economy, the Jobs Support Scheme (JSS) launched by the Singapore government has become an important lifeline for local businesses. This wage subsidy policy, designed to help businesses retain employees, has been adjusted and refined multiple times since its launch in 2020. This article will comprehensively analyze the latest JSS eligibility criteria, helping business owners accurately determine whether they qualify and how to maximize the use of this support measure.

1. Core Purpose and Basic Framework of the JSS Program

The Jobs Support Scheme is a key component of Singapore's "Resilience Budget," with its core purpose being to reduce businesses' manpower cost pressures through wage subsidies and avoid large-scale layoffs. Unlike simple cash grants, JSS is directly linked to the actual wages paid by businesses, ensuring precision and efficiency in fund utilization.

The program is jointly managed by the Inland Revenue Authority of Singapore (IRAS) and Enterprise Singapore (EnterpriseSG), with subsidy payments typically disbursed automatically through businesses' existing GST or income tax accounts, greatly simplifying the application process. As of the end of 2023, JSS has disbursed over S$28 billion in subsidies to more than 150,000 businesses, covering approximately 2 million local employees.

2. Industry Classification and Differentiated Subsidy Standards

The most distinctive feature of JSS is its industry-differentiated subsidy strategy, categorizing industries into different tiers based on the degree of COVID-19 impact. This classification is dynamically adjusted according to the pandemic situation, and business owners need to closely monitor the latest announcements.

Currently, industries are divided into three tiers:
Tier 1 (highest subsidy): Including F&B, aviation, tourism, and other industries most severely impacted, eligible for up to 50% wage subsidy;
Tier 2: Retail, arts and entertainment industries, with a 30% subsidy rate;
Tier 3: Less affected industries such as IT services and financial services, with a 10% subsidy rate.

It's important to note that industry classification is determined by the Singapore Standard Industrial Classification (SSIC) code. A business engaged in diversified operations may face classification confusion; in such cases, the SSIC code representing the highest proportion of main business revenue applies. One business owner operating both a restaurant and food delivery shared: "60% of our revenue comes from dine-in services, so we were classified under F&B and received a higher subsidy rate, which makes sense."

3. Key Conditions for Business Eligibility

To qualify for JSS subsidies, businesses must meet several mandatory conditions:

1. Registration and Contribution Requirements: Businesses must be registered with the Accounting and Corporate Regulatory Authority (ACRA) and have paid all government-mandated taxes and Central Provident Fund (CPF) contributions on time. Businesses with outstanding CPF contributions will be temporarily disqualified until payment is complete.
2. Employee Scope Definition: Only businesses that make CPF contributions for Singapore citizens or permanent resident employees are eligible for subsidies. Foreign employees (including EP, SP, and WP holders) are not covered. However, there is one exception—portions where businesses voluntarily contribute CPF for Malaysian WP holders can also be included in calculations.
3. Operational Status Review: Businesses must maintain active operational status during the subsidy period. Businesses that intentionally suspend operations or significantly reduce operational scale (for non-pandemic reasons) may be disqualified. The government tracks business operational status through GST filings, CPF contributions, and other data.
4. Salary Cap Regulations: Subsidies are calculated only on the first S$4,600 of monthly wages; amounts exceeding this are not included in the subsidy base. This design ensures resources are directed toward middle and lower-income employees.

4. Handling of Special Circumstances

In reality, business operational situations vary greatly, and JSS has specific provisions for several special circumstances:

Newly Established Businesses: New businesses that complete ACRA registration and begin CPF contributions at least three months before the subsidy quarter can apply. For example, a company registered in August 2023 can apply for subsidies for the October-December 2023 quarter.

Group Companies: Subsidiaries within a group typically need to apply separately, but if the group uses a centralized CPF payment system, they can apply collectively as a group. In such cases, intra-group transactions will undergo stricter scrutiny to prevent abuse.

Business Transformation Companies: Businesses that transformed during the pandemic (such as restaurants pivoting to food delivery) may face industry reclassification. In principle, classification is based on the main revenue source after transformation, but sufficient supporting documentation is required.

Dormant Business Reactivation: Businesses that suspended operations due to the pandemic and later restart need to demonstrate genuine intent to restart (such as re-hiring employees, resuming CPF contributions, etc.), with subsidies calculated from the month of restart.

5. Application Process and Common Issues

Eligible businesses typically do not need to actively apply; subsidies are automatically calculated and transferred to the business's designated IRAS account. However, businesses must ensure:

1. Timely submission of all employee CPF contribution records;
2. Prompt updates to ACRA business information (such as changes in main business activities);
3. Maintaining timeliness of GST filings (if GST-registered) and income tax filings.

Common issues include:

• Subsidy disbursement timing: Usually disbursed within 3-4 months after quarter end;
• Calculation basis: Based on actual wages paid in the specified quarter, not fixed wage standards;
• Error correction: If calculation errors are discovered, contact IRAS within 60 days of receiving payment.

6. Compliance Requirements and Subsequent Audits

Businesses receiving JSS subsidies must retain relevant documentation for at least 5 years, including payroll records, CPF contribution certificates, business operation documentation, etc. IRAS conducts random audits, and if false reporting is discovered, not only must subsidies be returned, but businesses may also face penalties of up to 200% and criminal charges.

An HR manager from a subsidized business shared their experience: "We established a dedicated filing system, organizing payslips, bank transfer records, and CPF contribution receipts by month, ensuring we can cooperate with inspections at any time."

Conclusion

As a core policy of Singapore's economic relief measures, the Jobs Support Scheme's eligibility design reflects a balance between targeted assistance and fiscal prudence. For eligible businesses, JSS can effectively alleviate cash flow pressure; for businesses not yet eligible, they can reference these standards to plan their future development path. As economic conditions change, JSS policies may continue to adjust, and business owners should obtain the latest information through official government websites or consult professional accountants for personalized advice. During these challenging times, fully understanding and making good use of government support policies will be an important boost for businesses to overcome difficulties.