Job Credit....

Our government has introduced "Jobs Credit Scheme" in the Singapore Budget 2009 to encourage businesses to preserve jobs in the downturn. Businesses will receive a cash grant based on the CPF contributions they have made for their existing employees. It provides a significant incentive for businesses to retain existing workers, and where their business warrants, to employ new ones. With this scheme the government hope employers will refrain from using retrenchment but to keep it as a last resort.

How Job Credit works
The Jobs Credit is calculated based on 12% of the first $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 $900 per employee for each payment (12% x $2,500 x 3 months).

I personally feel that this scheme will only be able to help some of the companies.. But there are some companies who still have to resort to retrenchment.. Demand is going down and thus some industries who usually depends on manpower will have to resort to retrenchment. Like in the construction companies.. What are the employers going to do with a load of foreign workers when there are not much projects to circulate?

But lets hope this scheme can work.. and save as many jobs as possible....