Singapore’s 60th birthday year has brought with it a landmark Budget, delivered by Prime Minister and Finance Minister Lawrence Wong on 18 February 2025. This much-anticipated statement reflects the Government’s commitment to addressing current cost-of-living pressures, investing in future growth, and strengthening the social compact. In particular, Budget 2025 also dovetails with Reeracoen’s focus on talent solutions for both jobseekers and employers.

Below, we unpack the top key measures that stand to impact Singapore’s workforce and business community—plus a handy summary at the end for quick reference.

1. A Budget for All Singaporeans

Marking 60 years of independence (“SG60”), Singapore is rolling out several one-off goodies:

• SG60 Vouchers
  • S$600 for Singaporeans aged 21 to 59 in 2025
  • S$800 for Singaporeans aged 60 and above
  • Distributed in July 2025, these vouchers can be used similarly to CDC Vouchers at supermarkets, heartland merchants, and hawkers.
     
• SG60 Baby Gift
  • A special gift package (details to be shared by early March) for all Singaporean babies born in 2025.
     
• 60% Personal Income Tax Rebate
  • Capped at S$200
  • Applies to income earned in 2024, benefiting mostly middle-income workers.

Why It Matters:
These one-off measures recognise the contributions of Singaporeans across generations, while also serving as an economic boost to local retail and F&B sectors that accept such vouchers.

2. Addressing Cost Pressures and Household Expenses

2.1 Community Development Council (CDC) Vouchers

• S$800 in total per Singaporean household, disbursed in two tranches:
  • S$500 in May 2025
  • S$300 in January 2026

2.2 Utilities Rebates and Family Credits

• U-Save Utilities Rebates: Up to S$760 for eligible HDB households, covering roughly 3–6 months of utility bills.
   
• LifeSG Credits:
  • S$500 per child aged 12 and below
  • S$500 top-up to Edusave/Post-Secondary Education Accounts for those aged 13 to 20

Why It Matters for Employers & Workers:

With more direct support to offset daily living costs (groceries, utilities, childcare), employees face less cash-flow pressure—potentially reducing the need for ad-hoc pay increases or job-hopping for higher pay. This could help employers stabilise their workforce.

3. Empowering the Workforce: Upskilling and Wage Support

3.1 Progressive Wage Credit Scheme (PWCS)

• Higher co-funding from the Government for wage increases:
• 40% in 2025 (up from 30%)
• 20% in 2026 (up from 15%)

This scheme continues to encourage employers to uplift lower-wage workers while balancing business cost pressures.

3.2 SkillsFuture Enhancements

• Monthly Training Allowance for full-time courses: up to S$3,000 a month (capped at 24 months).
• Part-time Training Allowance: S$300 a month, starting early 2026.
• SkillsFuture Workforce Development Grant: Up to 70% funding for companies to undertake job redesign, digital transformation, and workforce training.

3.3 CPF Contribution Increase for Older Workers

• Contribution rates for employees aged 55 to 65 go up by 1.5 percentage points from 1 January 2026.
• Employers will receive CPF transition offsets to help with the incremental cost.

What It Means:
Workers: Better wage prospects, especially for lower-income earners, plus more financial support for mid-career retraining.
Businesses: Government co-funding eases the cost of pay hikes and training, making it more attractive to invest in employee development.

4. Bolstering Economic Growth and Competitiveness

4.1 Corporate Income Tax Rebate

• 50% rebate in YA 2025, capped at S$40,000 per company.
• Minimum benefit of S$2,000 for active companies that employed at least one local worker in 2024.

This is designed to offset higher costs (rent, labour) and sustain enterprise competitiveness.

4.2 Funding for Enterprise Innovation and Expansion

• S$3 billion top-up to the National Productivity Fund (NPF), fuelling innovation, productivity, and tech adoption.
• S$1 billion Private Credit Growth Fund to provide more financing options for high-growth local companies.
• Tax Incentives to encourage local-based firms and fund managers to list in Singapore, spurring capital market vibrancy.

Net Benefit:

• Companies will find it easier to raise funds, scale up, or list on the local bourse.
• Jobseekers: Expect more roles in R&D, project management, digital strategy, and cross-border expansion.

5. Community, Culture, and Inclusivity

5.1 Hawker Centres & Rental Support

• S$600 one-time rental support for hawker and market stallholders in centres run by government-appointed operators.
• Up to S$1 billion to upgrade ageing hawker centres and build new ones over the next 20–30 years.

5.2 SG Culture Pass

• S$100 in credits for all Singaporeans aged 18+ to attend local arts and heritage events, valid until end-2028.

5.3 S$100 ActiveSG Credits

• S$100 top-up for all ActiveSG members in June 2025, for use at public sports facilities and fitness programmes.

5.4 Charity and Giving

• Over S$600 million in matching funds for charities, social causes, and cultural groups.
• Self-help groups receive an additional S$60 million over five years.

Why It Matters:
These initiatives strengthen Singapore’s “heart” and community spirit, indirectly supporting a healthy, cohesive environment for businesses and talent.

Conclusion: A Forward-Looking Budget for All

• Budget 2025 is anchored in two big objectives:
• Mitigating near-term cost-of-living and cost pressures
• Positioning Singapore for long-term growth and social cohesion

For businesses, it’s a timely mix of tax incentives, training subsidies, and wage co-funding. For workers, it’s an opportunity to upskill, benefit from wage support, and ride the wave of new growth sectors. Ultimately, this Budget underscores Singapore’s continuing efforts to adapt, stay competitive, and look after its citizens—especially in a milestone year like SG60.

The Government is clearly focused on ensuring both immediate relief and long-term resilience. Employers who tap on these grants and wage support schemes will be well-poised to attract and retain talent. Meanwhile, workers—from younger professionals to mid-career switchers—now have more financial backing to reskill and thrive in new roles. Let’s seize these opportunities together.

——————————————————————————————
BUDGET 2025 SUMMARY
A quick, at-a-glance guide to the essential measures

How to Use This Sheet

• Identify relevant schemes for your situation—be it job training, wage support, or household relief.
• Check eligibility & timelines to apply (or claim) benefits.
• Plan your next steps—e.g., sign up for courses, factor rebates into business budgets, explore expansion or hiring strategies.

Need More Guidance?

Reeracoen is here to help. Whether you’re an employer aiming to maximise government support to elevate your HR practices, or a jobseeker looking to leverage training schemes, our recruitment specialists are ready to guide you.

Together, let’s make the most of Budget 2025—securing both near-term gains and long-term success in a fast-evolving economic landscape.

*All information is accurate as of Budget 2025 announcements.

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Reference Links:

https://www.mof.gov.sg/news-publications/press-releases/2025-budget-statement-to-be-delivered-on-tuesday-18-february-2025

https://www.straitstimes.com/singapore-budget-2025-live-pm-wong

https://www.straitstimes.com/singapore/budget-2025-600-sg60-vouchers-for-citizens-aged-21-to-59-800-for-those-aged-60-and-above

https://www.straitstimes.com/singapore/budget-2025-is-one-for-all-singaporeans-pm-wong

https://www.businesstimes.com.sg/singapore/budget-2025-government-pay-close-attention-public-housing-hdb-launches-over-50000-new-flats-over

https://www.businesstimes.com.sg/singapore/budget-2025-tax-rebates-exemption-draw-companies-and-fund-managers-singapore

https://www.channelnewsasia.com/singapore/budget-2025-corporate-income-tax-progressive-wages-4944546

https://www.channelnewsasia.com/singapore/cdc-vouchers-u-save-rebates-sglife-budget-2025-4944476

https://www.channelnewsasia.com/singapore/sg60-vouchers-baby-gift-income-tax-rebate-budget-2025-4944576

https://sbr.com.sg/economy/in-focus/live-updates-singapore-budget-2025

https://mothership.sg/2025/02/100-activesg-credits-budget-2025/

https://mothership.sg/2025/02/sporean-households-cdc-vouchers-2025/

https://www.cnbc.com/2025/02/18/singapore-budget-2025-more-support-for-businesses-and-households.html