SINGAPOREAN WORKERS now have additional support for learning new skills. More robust training allowance programmes are coming under Budget 2025.
Meanwhile, businesses will enjoy a 50 per cent corporate income tax rebate going forward.
These were among the pro-worker and pro-business policies which Prime Minister Lawrence Wong announced as part of Budget 2025 (18 Feb).
“The measures we have taken in recent years, and are taking in this Budget, will help to mitigate the impact of rising costs,” said PM Wong, who is also Minister for Finance. “In the longer term, the best way to adjust to higher prices is to grow the economy and increase productivity so that all Singaporeans can enjoy higher real incomes and better standards of living.”
Keeping workers upskilled and employable for good jobs
Source: Lawrence Wong / Facebook
The strengthened training allowances mean support particularly for lower-wage workers.
An enhanced tier of support under the Workfare Skills Support Scheme is coming, modelled after the SkillsFuture Training Programme. It will support lower-wage workers taking longer-form skills upgrading courses once they turn 30 years old.
“Lower-wage workers tend to benefit more from longer-form courses that provide more substantial reskilling and upskilling,” said PM Wong, adding that the Ministry of Manpower would share more details at the upcoming Committee of Supply (COS) debates.
Also, workers undergoing part-time training will enjoy a fixed allowance of $300 a month to defray training expenses. This fixed allowance will begin next year and help pay for training-related expenses like books and transport.
Meanwhile, senior workers can look forward to more secure retirements. CPF contribution rates for those aged above 55 years and up to 65 years will increase by 1.5 per cent in 2026. The PAP Government will cover half of this increase for employers.
“With this move, senior workers can build up their retirement savings, and businesses will get continued support,” said PM Wong.
Companies employing Singaporean workers aged 60 and above who earn less than $4,000 a month will enjoy more wage offsets with the extended Senior Employment Credit (SEC). PM Wong is raising the qualifying age for the highest SEC wage support to 69 years; the Government will reimburse companies with up to 7% of the wages paid to workers aged 69 and above.
Ex-offenders will also be given more support to reintegrate into society. The Uplifting Employment Credit scheme, which pays companies up to $600 of an ex-offender employee’s monthly wage, is being extended to end-2028 — a very tangible incentive for employers.
These funds will help future-proof workers, keeping them employable not just for their present jobs — but future ones as well.
“The Government is fully committed to supporting the lifelong employability of our workers,” said PM Wong. “We cannot stop the ways of technological innovations. Nor can we save every job. But we can and we will invest in every worker and every Singaporean.”
Keeping businesses competitive
Source: Lawrence Wong / Facebook
Meanwhile, the 50 per cent tax rebate for all businesses will help manage increasing rent and labour costs.
Government co-funding for wage increases under the Progressive Wage Credit Scheme will also increase to 40 per cent this year and 20 per cent next year. These are up from 30 per cent and 15 per cent respectively.
PM Wong additionally introduced a new SkillsFuture Workplace Development Grant. This will provide companies with up to 70 per cent of funding support for job redesign activities.
The budget will also ensure that Singapore’s business ecosystem thrives in the future.
PM Wong introduced a new $1 billion private credit growth fund so that high-growth local enterprises can scale up — this will let Singapore seize opportunities once the global private credit market shifts its focus to Asia.
The Changi Airport development fund will also be topped up by $5 billion. This will keep Singapore a critical gateway for global travel and trade.
Infrastructure development will also be a large part of Budget 2025. The development of Tuas Mega Port is progressing well, and will enable Singapore to remain a leading maritime hub. The national broadband network is also being upgraded for internet speeds of up to 10 times faster than present.
“Singapore thrives as a hub economy, facilitating the flow of people, capital, goods and ideas. To sustain this position, we must ensure excellent connectivity with the rest of the world, both physically and digitally,” said PM Wong.
