Prime Minister and Finance Minister Lawrence Wong delivered the Singapore Budget 2025 titled “Onward Together for a Better Tomorrow” on 18 February 2025.
Considering geopolitical tensions and shifting global economic conditions, he emphasised that despite the robust growth numbers that Singapore has posted for 2024, there are considerable challenges that we will need to face as a nation.
Among them, he mentioned:
- Managing the rising cost of living for Singaporeans
- Maintaining Singapore’s global competitiveness through technological transformation and innovation
- Continuing to strengthen our workforce in a fast-changing business environment through upskilling and reskilling
- Supporting our ageing population when it comes to retirement and long-term care
In this piece, we highlight the key changes relevant to our personal finances.
Support for Every Singaporean Household
a. Community Development Council (CDC) Vouchers Scheme
Every Singaporean household will receive $800 CDC vouchers. Half can be used at participating supermarkets; the other half can be used at participating heartland merchants and hawkers.
b. 2025 Additional Cost-of-Living U-Save Rebates
Eligible Singaporean households living in HDB flats and whose household members do not own more than one property will receive one-off Budget 2025 (B2025) Cost-of-Living (COL) U-Save rebates of up to $760 to help offset their regular utilities expenses. They will be disbursed quarterly. This will benefit an estimated 950,000 Singaporean households.
The additional U-Save rebates will be disbursed in four tranches from April 2025.
Notes:
- The amount for B2025 COL U-Save includes the additional $20 of U-Save per quarter from the $1.1 billion COL Package announced in September 2023, to cushion the impact of higher utility bills in 2024 and 2025 from increases in carbon tax and water price.
- If the flat is partially rented out or not rented out, there must be at least one Singaporean owner or occupier in the household to be eligible for U-Save. If the entire HDB flat is rented out, there must be at least one Singaporean tenant.
- Households whose members own more than one property are not eligible for U-Save.
Additional Support for Families
a. LifeSG Credits and Top-ups to Edusave/PSEA Accounts
Families with children will receive $500 in LifeSG credits for children for each Singaporean child aged 12 and below this year which can be used to defray household expenses. These will be accessible via the LifeSG application.
Each Singaporean aged 13 to 20 this year will also receive a $500 top-up to the Edusave or Post-Secondary Education Account which can be used for approved education-related expenses.
b. Large Families Scheme
Parents with a third or subsequent Singapore Citizen child born on or after 18 February 2025 will receive an increased Child Development Account (CDA) First Step Grant, a Large Family Medisave Grant (LFMG) and annual Large Family LifeSG Credits (LFLC) in the years that the eligible child turns 1 to 6.
Strengthening Our Workforce
a. Enhancement to the SkillsFuture Level-Up Programme
In 2025, the SkillsFuture Mid-Career Training Allowance component of the SkillsFuture Level-Up Programme (SFLP) will be extended to selected part-time long-form training programmes.
The existing monthly training allowance provided for those who enroll in selected full-time courses is:
- Equivalent to 50% of the trainee’s average income over the latest available 12-month period.
- Capped at $3,000 per month.
- For up to 24 months of such training allowances in their lifetime.
And new the monthly training allowance provided for those who enroll in selected part-time, long-form training programmes will be:
- A fixed allowance of $300 per month.
- For up to 24 months of such training allowances in their lifetime.
The 24-month cap will be shared between both full-time and part-time training.
Building Up Seniors’ CPF Savings
a. Increase in CPF Contribution Rates for Senior Workers
For employees earning monthly wages exceeding $750:
- Employer contribution change in 2026: 0.5%
- Employee contribution change in 2026: 1.0%
With the closure of the Special Account (SA), the increase in CPF contributions allocated to SA will be fully allocated to the Retirement Account (RA) instead, up to the Full Retirement Sum (FRS). For members who have set aside the FRS in their RA, these contributions will be channelled to the Ordinary Account (OA).
Refer to this FAQ for more information.
b. Enhancements to Matched Retirement Savings Scheme (MRSS)
The government launched the MRSS scheme in 2021 to help senior Singapore Citizens with lower retirement savings build up more.
Under MRSS, the government will match every dollar of cash top-ups made to the RA of eligible members.
From January 2026, MRSS will be expanded to eligible Singaporeans with disabilities of all ages to help them save up for their retirement early.
Refer to this FAQ for more information.
c. New Matched Medisave Savings Scheme (MMSS)
From January 2026, to boost MediSave adequacy for seniors with lower balances, the government will match every dollar of voluntary cash top-ups to the MediSave Account (“MA”) of eligible CPF members, up to an annual cap of $1,000.
Anyone, including their families, employers, and the community, can make the top-ups to eligible members’ CPF MA.
To be eligible for the MMSS, the CPF member whose CPF MA is being topped up must:
- Be a Singapore Citizen aged 55 to 70;
- Own no more than one property;
- Have a residential Annual Value of not more than $21,000;
- Have an average monthly income of not more than $4,000; and
- Have a CPF MA balance that is less than half the prevailing Basic Healthcare Sum (BRS).
d. Enhancements to Long-Term Care Subsidies and Grants
To support Singapore Citizens and Permanent Residents with the costs of long-term care (LTC), the Government will enhance means-tested subsidies and grants for LTC, which include medical and social care for persons with chronic illnesses, disabilities, and/or who are frail and need assistance with activities of daily living. Lower-income groups can enjoy higher subsidies.
More details can be found here.
Celebrating SG60
a. SG60 Vouchers
All Singapore Citizens aged 21 and above will receive vouchers in celebration of SG60.
Similar to CDC vouchers, SG60 vouchers will be claimable on RedeemSG using your Singpass, and can be spent at participating supermarkets (50%), heartland merchants and hawkers (50%).
b. Personal Income Tax (PIT) Rebate for Year of Assessment (YA) 2025
c. SG60 Baby Gift
To celebrate the joy and significance of parenthood, the government will provide a SG60 baby gift for all Singapore Citizen babies born in 2025.
More details will be released in due time.
d. SG60 Culture Pass
To foster national pride and identity amongst Singaporeans through local arts and heritage, all Singapore Citizens aged 18 and above in 2025 will be eligible for $100 SG Culture Pass credits.
Credits can be used to purchase tickets, sold by approved ticketing partners, for:
- Eligible local performances
- Exhibitions
- Learning tours
- Participatory workshops
Ministry of Culture, Community & Youth (MCCY) will provide further information.
e. SG60 ActiveSG Credits
To continue to encourage broad-based sports participation across different segments of society during SG60, Singapore Citizens and Permanent Residents will be eligible for a one-off ActiveSG credit top-up.
Credits can be used:
- For fees to utilise ActiveSG facilities
- To offset fees for ActiveSG programmes
Warmest regards,
Solutions Team
– Reference Links –
CPF MRSS for Singaporeans with Disabilities
IRAS Tax Changes and Enterprise Disbursements 2024
CNA – CPF Enhanced Retirement Sum to increase; Special Account to be closed for those 55 and above
We do not charge a fee at the first consultation meeting. If you would like an honest opinion on your current estate plan, investment portfolio, financial and/or retirement plan, make an appointment with us today.
