Prime Minister and Finance Minister Lawrence Wong tackles cost pressures and supporting firms and employees in preparing for future challenges. - Photos: ST
SINGAPORE: More help for companies and workers will be provided as part of Budget 2025, with Prime Minister and Finance Minister Lawrence Wong tackling cost pressures and supporting firms and employees in preparing for future challenges.
Help for workers:
- Part-time training allowance of $300 a month. It will be implemented in early 2026 for those who prefer to continue working while upskilling on a part-time basis. This will help to defray their learning expenses.
- Central Provident Fund (CPF) contribution rates to increase for those aged above 55 to 65 by 1.5 percentage points in 2026. This is so senior workers can build up their retirement savings. The CPF Transition Offset scheme will be provided to employers for another year, to cover half of the increase in employer contributions for 2026.
- More localised career matching services. Localised job matching will be expanded to all Community Development Councils islandwide to help those who prefer to take on jobs near their homes.
- Personal income tax rebate of 60 per cent for Year of Assessment 2025. This will be capped at $200, so the rebate mostly benefits middle-income workers.
- Enhanced support under the Workfare Skills Support scheme. This will benefit lower-wage workers when they turn 30. The current scheme is designed primarily to support short courses that are completed over a few days, but lower-wage workers stand to benefit more from longer-form courses that provide more substantive reskilling and upskilling, PM Wong said.
Help for companies:
- 50 per cent corporate income tax rebate in Year of Assessment 2025. Every active company that employed at least one local worker in 2024 will get a minimum benefit of $2,000. The total benefit each company can receive will be capped at $40,000.
- Progressive Wage Credit Scheme enhanced. The Government’s co-funding levels for wage increases with employers will rise from 30 per cent in 2025 to 40 per cent, and from 15 per cent in 2026 to 20 per cent.
- New Enterprise Compute Initiative. PM Wong said $150 million will be set aside for this new initiative where eligible firms will be partnered with major cloud service providers to access artificial intelligence tools and expert consultancy services.
- New SkillsFuture Workforce Development Grant. The new grant will provide higher funding support of up to 70 per cent for job redesign activities undertaken by firms.
- Redesigned SkillsFuture Enterprise Credit. It will operate like an online wallet where companies can use credit to pay for enterprise and workforce transformation. All firms with at least three resident workers will get a fresh $10,000 in credit, made available in the second half of 2026 and lasting three years. Companies can continue to use the current credit, which will be extended until the new credit is ready. - The Straits Times/ANN
