The £7 million investment, which is to be funded by private sector businesses and individuals, will fund 50 per cent of a full-time salary for each new post created.
Private and third sector employers are invited to bid for money from the fund, which will launch in January.
Glasgow City Council leader Gordon Matheson said that the fund will be particularly targeted at organisations that have signed up to the Glasgow Living Wage campaign, which fights to encourage employers to set a minimum wage of £7 an hour, and employ fewer than 250 people.
Matheson said: "I am delighted to announce the establishment of the fund. From the small employer looking to take on their first member of staff to the medium-sized company that needs support to get through difficult economic times, the Commonwealth Jobs Fund will help businesses across the city."
The fund was launched on the back of the council’s existing Commonwealth Apprenticeship scheme, which launched in 2008 and created 600 apprenticeship opportunities for Glaswegian school leavers in 2010.
Both schemes are designed to contribute to the legacy of the Glasgow 2014 Commonwealth Games.