Prime Minister and Minister of Finance Lawrence Wong has just delivered his Budget 2025 statement today (February 18) at the Parliament House.
Titled Onward Together For A Better Tomorrow, this year’s Budget includes more support for cost of living concerns, seniors and workers, among other initiatives.
We’ve simplified the announcement and have broken down the key benefits for different groups of Singaporeans and businesses. Here’s what you need to know:
For individuals
In commemoration of Singapore’s 60th year of independence (SG60), S$600 vouchers will be given to all Singaporeans aged 21 to 59, while those aged 60 and above will receive S$800 vouchers.
There will also be a personal income tax rebate of 60% for YA 2025, capped at S$200.
All ActiveSG members will get S$100 in “SG60 ActiveSG credits,” which can be used to book sports activities and programmes.
An SG Culture pass valued at S$100 credits will be given to those aged 18 and above to encourage Singaporeans to attend local arts and heritage activities.
For households and families
Each Singaporean household will receive S$800 in CDC vouchers and additional U-Save rebates up to S$750 this financial year.
Climate vouchers will be enhanced, with HDB households receiving a total of S$400 worth of vouchers. Those residing in private properties will receive them as well.
All Singaporean babies born this year will receive an SG60 Baby Gift, and S$500 LifeSG credits will be given out to each Singaporean child aged 12 and below.
The government will also provide a S$500 Edusave or Post-Secondary Education Account (PSEA) top-up for every Singaporean aged 13 to 20 this year.
Parents of Singaporean children will receive up to S$16,000 more in support for their third or subsequent child under a new Large Families Scheme.
Monthly full-day childcare fee caps in government-supported preschools will also be reduced.
To better support lower-income families, the government will increase ComCare Assistance scheme payouts.
The Fresh Start Housing Scheme will also get a boost to help families living in public rental flats, and the current S$50,000 grant for families to buy a new Standard two-room Flexi or a Standard three-room flat on a shorter lease will be increased to S$75,000.
Additionally, subsidy rates for adult disability services will be raised, along with an increase in the maximum qualifying per capita household income.
The Matched Retirement Savings Scheme will also be expanded to include eligible Singaporeans with disabilities regardless of age.
For seniors
The Singapore Allowance will rise for some pensioners, increasing from S$350 to S$390 each month. The monthly pension ceiling will also increase to S$1,320.
The Enhancement for Active Seniors (EASE) programme, currently limited to HDB residents, will be expanded for three years to 2028 for households in private properties.
A new five-year Matched MediSave Scheme will be introduced, and this will apply to eligible lower-income seniors aged 55 to 70.
For seniors with more severe care needs and who require nursing homes, subsidies will increase by 15%, and the maximum qualifying per capita household income will also be raised to S$4,800.
Those born in 1969 or before and who do not benefit from CareShield Life will have their subsidies increased by 5%.
Support will also be enhanced for seniors who don’t stay in nursing homes—existing subsidies for long-term care services in the home and community will go up by 10%, and subsidies under the Seniors’ Mobility and Enabling Fund will also increase.
The Home Caregiving Grant will also increase from S$400 a month to S$600.
For workers
The training allowance under the SkillsFuture Level-Up Programme, targeted at Singaporeans aged 40 and above, will be extended to part-time training from early next year.
An enhanced tier of support under the Workfare Skills Support will be introduced, which will be modelled after the SkillsFuture Level-Up Programme and benefit lower-wage workers when they turn 30.
Senior workers will see increased CPF contribution rates, and those aged between 55 to 65 years old will see their contribution rates increase by 1.5% in 2026.
For SMEs & businesses
A 50% corporate income tax rebate will be introduced in YA 2025.
Hawkers will receive a one-time rental support of S$600 per stall for those in centres managed by governments and government-appointed operators.
The government’s co-funding levels for wage increases under the Progressive Wage Credit Scheme will go up from 30% in 2025 to 40% and from 15% in 2026 to 20%.
The National Productivity Fund will be topped up with an additional S$3 billion to support measures for businesses to improve productivity, and continue to educate and train workers.
EDB will launch a Global Founder Programme later this year to tap the agency’s close links with multinational firms and entrepreneurs and help Singapore-based enterprises to scale up.
Up to S$150 million will be put aside for a new Enterprise Compute Initiative, which will help firms tailor AI solutions to their needs and integrate them into their business processes and systems.
A new S$1 billion Private Credit Growth Fund will also be introduced to provide more financing options for high-growth local enterprises.
Tax incentives will be introduced for Singapore-based companies and fund managers that choose to list in Singapore and grow their economic activities here.
A redesigned SkillsFuture Enterprise Credit will be introduced—all companies with at least three resident employees will get a fresh S$10,000 in the redesigned SkillsFuture Enterprise credit.
A new SkillsFuture Workforce Development Grant will also be introduced, which will provide higher funding support of up to 70% for job redesign activities.
The CPF Transition Offset will be extended to employers for another year to cover half of the increase in employer contributions for senior workers in 2026.
The extension of the Senior Employment Credit and the Uplifting Employment Credit will provide wage offsets for employers who hire Singaporean seniors and ex-offenders.
- Read other articles we’ve written on Budget 2025 Singapore here.
Featured Image Credit: PM Lawerence Wong via Facebook/ Ministry of Finance
