Introduction: Turning Workforce Costs into Growth Opportunities
In Singapore’s competitive business landscape, hiring the right people is one of the biggest challenges and investments that companies face. With manpower costs rising and economic uncertainties lingering, many businesses—especially SMEs—struggle to expand their workforce while maintaining profitability.
However, 2025 brings a range of hiring grants and support schemes from the Singapore government designed to help employers overcome these challenges. These initiatives, administered by agencies such as Workforce Singapore (WSG), SkillsFuture Singapore (SSG), and Enterprise Singapore (ESG), aim to support companies in recruiting, training, and retaining local talent.
By leveraging these hiring grants strategically, Singapore businesses can not only reduce hiring costs but also enhance productivity, upskill employees, and future-proof their operations. For SMEs especially, these grants can mean the difference between stagnation and sustainable growth.
1. Why Hiring Grants Matter for Singapore Businesses
(a) Addressing Rising Labour Costs
Singapore’s labour market remains tight, with wages increasing across most industries. The Progressive Wage Model (PWM) and Local Qualifying Salary (LQS) requirements, while beneficial for workers, can strain small business budgets. Hiring grants help offset part of these costs, making it easier for employers to maintain competitiveness without compromising staff welfare.
(b) Supporting Business Transformation
The government recognises that workforce transformation is essential for long-term economic resilience. Many grants are tied to training, digital adoption, or capability building, allowing companies to simultaneously hire and upgrade staff skills.
(c) Encouraging Local Employment
To strengthen the local workforce, Singapore offers financial incentives for employers to hire Singaporeans and Permanent Residents (PRs). This aligns with national objectives under initiatives like Forward Singapore and SkillsFuture, promoting inclusive growth and job security.
In short, hiring grants serve as strategic enablers—helping companies grow while contributing to Singapore’s overall workforce development.
2. Key Hiring Grants Available in 2025
There are several major hiring and training-related grants businesses can tap on this year. Here’s a breakdown of the most relevant ones for employers:
1. Career Conversion Programmes (CCPs)
Administered by: Workforce Singapore (WSG)
Support Level: Up to 90% salary and training support for new hires or existing employees undergoing career conversion.
The CCPs are among the most valuable schemes for companies hiring mid-career individuals or reskilling existing staff for new roles.
There are over 100 CCPs across industries such as:
- Accounting and finance
- Information technology and cybersecurity
- Logistics and supply chain
- Healthcare and social services
- Sustainability and green jobs
For employers, the CCP helps reduce the financial burden of training and salary during the employee’s adaptation phase, while ensuring they gain industry-relevant competencies.
Example:
A logistics SME hiring a project executive under the CCP can receive up to 90% salary support for six months while the new hire undergoes structured training.
2. Jobs Growth Incentive (JGI) (Extended in 2025)
Administered by: Workforce Singapore (WSG)
Support Level: Up to 15–50% of the first six months of wages, depending on the employee profile.
The JGI aims to encourage businesses to expand local hiring. Extended into 2025 for selected sectors, it rewards companies that grow their local workforce compared to previous employment levels.
Employers hiring older workers (aged 40 and above), long-term unemployed, or persons with disabilities receive higher support percentages.
This grant is especially beneficial for businesses in retail, logistics, food services, and manufacturing, which rely heavily on manpower and often face difficulties in local recruitment.
3. Support for Job Redesign under Productivity Solutions Grant (PSG-JR)
Administered by: Workforce Singapore (WSG) and Enterprise Singapore (ESG)
Support Level: Up to 70% of consultancy costs, capped at S$30,000 per company.
The PSG-JR helps businesses redesign job roles to improve efficiency and make positions more attractive to local talent. Through professional consultancy, companies can identify ways to integrate automation, streamline workflows, and upskill employees.
By improving job quality, employers can not only attract more workers but also retain them—reducing future recruitment costs.
4. SkillsFuture Work-Study Programmes (WSPs)
Administered by: SkillsFuture Singapore (SSG)
Support Level: Up to S$15,000 per trainee for on-the-job training and mentoring.
Work-Study Programmes connect fresh graduates or diploma holders with employers for hands-on experience while they pursue part-time learning.
Businesses benefit by:
- Gaining access to young, trainable talent
- Receiving funding for onboarding and mentoring
- Contributing to talent pipeline development in their industry
For SMEs, this programme is a cost-effective way to nurture future full-time employees without high starting salaries.
5. Enabling Employment Credit (EEC)
Administered by: Ministry of Manpower (MOM)
Support Level: Up to 30% wage offset for hiring persons with disabilities.
The EEC encourages inclusive employment practices. Businesses that hire persons with disabilities (PWDs) receive up to S$400 per month in wage offsets for each employee.
This helps employers improve workforce diversity while supporting social inclusion—key principles of Singapore’s long-term workforce strategy.
6. SkillsFuture Enterprise Credit (SFEC)
Administered by: SkillsFuture Singapore (SSG)
Support Level: One-time S$10,000 credit per company to offset up to 90% of out-of-pocket expenses for training and capability-building initiatives.
The SFEC can be used together with hiring and training grants like CCPs or PSG-JR. It’s particularly useful for SMEs looking to integrate training into their hiring process or digital transformation journey.
3. Why 2025 Is the Best Time to Utilise Hiring Grants
(a) Post-Recovery Momentum
After years of global uncertainty and supply chain disruptions, Singapore’s economy is stabilising. Many industries—from hospitality to construction—are scaling operations again. Hiring grants provide the financial leverage to recruit staff without overburdening cash flow.
(b) Tight Labour Market
The demand for skilled labour continues to exceed supply in several key sectors such as technology, logistics, and finance. By leveraging hiring grants, businesses can attract and retain local talent more effectively, even when competing with larger corporations.
(c) Government Focus on Workforce Development
The government’s 2025 Budget emphasises inclusive growth, productivity, and innovation. Significant resources are being channelled into workforce reskilling and employer support. Businesses that tap into these grants early can gain a competitive edge before future revisions or funding caps.
(d) Rising Automation and Job Redesign Needs
Digitalisation and AI adoption are reshaping job roles across all sectors. Grants like PSG-JR allow companies to future-proof their workforce by redesigning roles around technology rather than replacing workers outright.
4. Benefits of Leveraging Hiring Grants
(a) Financial Relief for SMEs
For small and medium-sized enterprises, every dollar matters. Hiring grants can offset up to half or more of total manpower expenses, enabling businesses to focus resources on growth and innovation rather than salary costs.
(b) Improved Talent Retention
Grants tied to training (like CCPs) not only subsidise costs but also increase employee loyalty. Workers who receive structured development are more likely to stay longer and perform better.
(c) Building Future-Ready Capabilities
Workforce-related grants often come with a focus on digitalisation, sustainability, and new economy skills. By adopting them, companies can upgrade their internal capabilities and stay competitive in evolving industries.
(d) Strengthened Employer Branding
Businesses that invest in training and inclusive hiring signal to potential employees that they value people. This enhances employer reputation and helps attract better-quality talent.
5. Common Mistakes Businesses Make When Applying
- Applying Too Late – Many companies only consider grants after hiring, but most schemes require pre-approval before onboarding.
- Incomplete Documentation – Missing or inaccurate details can delay approval or reimbursement.
- Ignoring Eligibility Rules – Each grant has unique conditions regarding company size, employee profile, or job function.
- Not Tracking KPIs – Grants often require outcome reporting (e.g., employee retention). Failing to track results may affect future eligibility.
- Overlooking Complementary Grants – Businesses sometimes miss out on combining multiple schemes like CCP + SFEC for greater savings.
Avoiding these mistakes ensures smoother application and maximised funding benefits.
6. How to Combine Hiring Grants Strategically
A powerful approach for SMEs is to stack multiple grants for maximum benefit. For example:
- Step 1: Hire a mid-career worker through Career Conversion Programme (CCP) to receive up to 90% salary support.
- Step 2: Use SkillsFuture Enterprise Credit (SFEC) to cover the remaining training costs.
- Step 3: Apply for Job Redesign (PSG-JR) funding to restructure the role for efficiency and long-term sustainability.
This layered approach reduces upfront costs, enhances workforce quality, and improves productivity all at once.
7. The Role of Professional Grant Consultants
While grants provide significant benefits, the application process can be complex—requiring documentation, eligibility checks, and compliance reporting. Engaging a professional grant consultant like GrantConsultant.sg helps businesses:
- Identify the most relevant hiring grants
- Prepare complete, compliant applications
- Optimise funding by combining multiple schemes
- Manage post-approval claims and reports
With expert assistance, SMEs can save time and focus on growing their business while ensuring no grant opportunity is left untapped.
8. Steps to Get Started in 2025
- Assess Workforce Needs – Identify areas where new hires or upskilling are required.
- Review Available Grants – Match your hiring plans with schemes like CCP, JGI, or PSG-JR.
- Consult a Grant Advisor – Engage experts to plan applications strategically.
- Apply Early – Begin the pre-approval process before hiring to secure eligibility.
- Train and Track – Implement structured onboarding and training to meet grant deliverables.
- Claim Reimbursements Promptly – Submit claims with proper documentation to receive funding efficiently.
Conclusion: Turning Government Support into Business Strength
2025 presents one of the best opportunities for Singapore businesses to leverage hiring grants as part of their workforce and growth strategy. With strong government backing, generous funding levels, and programmes targeting nearly every industry, these grants are invaluable for managing costs, attracting talent, and future-proofing operations.
By using schemes like the Career Conversion Programme, Jobs Growth Incentive, and Productivity Solutions Grant (Job Redesign)—and pairing them with the SkillsFuture Enterprise Credit—businesses can transform hiring challenges into growth opportunities.
Whether you’re scaling a start-up or stabilising an SME, the key is to act early, plan strategically, and align workforce development with business goals. With expert guidance, such as that offered by GrantConsultant.sg, you can unlock the full potential of these 2025 hiring grants—building a stronger, more resilient, and future-ready team.
Find out more at https://grantconsultant.sg/