On Tuesday, 18 February 2025, Mr. Lawrence Wong, Prime Minister and Finance Minister, presented the 2025 Singapore Budget. The budget focuses on tackling cost pressures, supporting businesses, strengthening the economy and preparing for global uncertainties.
Below, we outline the key points that businesses and HR leaders should be aware of:
1. SkillsFuture Workforce Development Grant to Support Workforce Upskilling and Transformation
The introduction of the SkillsFuture Workforce Development Grant is designed to help companies restructure, transform, and enhance their workforce. This initiative will consolidate existing programmes from WorkForce Singapore and SkillsFuture Singapore, streamlining the application process for businesses.
Additionally, the grant will offer increased funding support of up to 70% for job redesign efforts.
2. Redesigned SkillsFuture Enterprise Credit for Easier Access
The SkillsFuture Enterprise Credit will be revamped to improve accessibility for businesses. Currently operating on a reimbursement basis, the redesigned scheme will function as an online wallet, allowing companies to check their balance and use credits instantly for workforce transformation initiatives and training courses.
From mid-2026, businesses with at least three resident employees will receive SG$10,000 in credit, lasting for three years. Meanwhile, the existing scheme, set to expire in June, will be extended until the new credit is ready.
3. SkillsFuture Level-Up Programme: New Training Allowance
Launched in 2024, the SkillsFuture Level-Up Programme provides SG$4,000 in SkillsFuture Credit to all Singaporeans aged 40 and above to support mid-career upskilling.
From mid-March 2025, Singapore Citizens who enrol in an eligible full-time, long-form programme can apply for the SkillsFuture Mid-Career Training Allowance. It will apply to eligible training from 1 April 2025, with the first disbursement in the following month. The allowance will be based on 50% of one’s average income over the latest available 12-month period, capped at $3,000 a month.
The SkillsFuture Mid-Career Training Allowance will be extended to selected part-time training from early 2026. Singapore Citizens who wish to continue working while pursuing substantive part-time training will receive a flat rate of $300 per month to defray incidental training expenses.
The SkillsFuture Mid-Career Training Allowance will support both full-time and part-time long-form training for a total of 24 months over an individual’s lifetime
4. Higher CPF Contribution Rates for Older Workers Starting 2026
From 1 January 2026, the total CPF contribution rate for Singaporean and permanent resident workers aged 55 to 65 years will increase by an additional 1.5%. This adjustment aims to help senior workers strengthen their retirement savings.
5. More Support for Hiring Seniors
The Senior Employment Credit (SEC) will be extended until the end of 2026, offering wage offsets for employees hiring Singaporean seniors aged 60+ earning below SG$4,000.
From 18 February 2025, the qualifying age for the highest SEC wage support tier raise to 69, from 68 years old currently, in line with the increase in the re-employment age with companies reimbursed up to 7% of wages for these employees.
6. Enhanced Support for Jobseekers and Localised Job Matching
Starting April 2025, the SkillsFuture Jobseeker Support scheme will provide financial aid of up to SG$6,000 over six months to help unemployed workers while they undergo training or job searches.
Career matching services will also expand, including localised job matching for those seeking workplaces closer to home, which will now be available at all Community Development Councils across Singapore.
7. SG$150M Boost to Help Enterprises Adopt AI
A SG$150 million Enterprise Compute Initiative was announced to support businesses in adopting AI effectively. This initiative will assist enterprises in integrating tailored AI solutions into their operations and processes.
Eligible companies will be able to partner major cloud service providers to access AI tools, computing power, and expert consultancy services.
8. Progressive Wage Credit Scheme Enhanced
At the 2025 Singapore Budget, it was announced that the government will continue its commitment to supporting lower-wage workers by enhancing the Progressive Wage Credit Scheme.
In 2025, the co-funding level for wage increases will rise from 30% to 40%, and in 2026, it will increase from 15% to 20%.
9. Corporate Income Tax Rebate Announced
The Singapore government will implement a 50% corporate income tax rebate for the Year of Assessment 2025. This initiative aims to help businesses manage cash flow amid rising structural costs. Companies that employed at least one local worker in the previous year will receive a minimum rebate of SG$2,000, while the maximum benefit per company is capped at SG$40,000.
Navigating the evolving landscape of labour laws can be challenging with continuous changes. Partnering with an HR service provider offers a solution to stay consistently informed. Links International stands out as an industry leader in HR outsourcing, offering services such as payroll outsourcing, visa applications, PEO/EOR services, outplacement, recruitment, corporate services and more. Contact us to discover how we can assist in optimising your business operations in 2025!
For further information on the 2025 Singapore Budget, please head over to the official website of the Singaporean government: https://www.mof.gov.sg/singaporebudget