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Budget 2025 – a $143.1 billion Budget – is for all Singaporeans, with a significant portion of the spending allocated to supporting families and our seniors, and equipping our workforce throughout life.
As the Government continues to monitor developments of recent global uncertainties and challenges, the Budget will also support individuals, workers, households and families with the short-term strains, and adapt to the new economic environment.
This broad national spending plan is to continue supporting a stable and prosperous economy, and improve the quality of life for all Singaporeans.
Recognising the unique challenges faced by different groups in society, the Government also implements more targeted support measures for various groups of Singaporeans. Unveiled at the Singapore Budget annually, these initiatives are designed to ease financial burdens, promote social mobility, and provide meaningful support for Singaporeans at every stage of life.
Here are the Budget 2025 support measures we can expect to receive in the coming months.
Support For Young Families and Their Children
Parents with young children often have to make lifestyle and career adjustments to accommodate their caregiving roles. Beyond the stresses and uncertainties that come with being a parent, young families also experience a rise in expenses and shoulder new financial responsibilities, which can put a strain on their household budgets.
Budget 2025 provides additional support for young families as they nurture the next generation of Singaporeans. Families with children aged 12 and below can look forward to a one-off $500 Child LifeSG Credits in 2025 for each child.
Those with older children, aged 13 to 20, won’t be left out either – with $500 in top-ups to each child’s Edusave Account or Post-Secondary Education Account (PSEA). This will help cushion cost pressures by paying for approved education-related expenses.
Read Also: Guide To Redeeming And Using Your LifeSG Credits
Larger families, with three or more children, can expect both immediate-term and sustained financial support in the form of a new Large Families Scheme (LFS). There are three parts to this new scheme:
1) Increasing the CDA First-Step Grant to $10,000. This can be used for child-raising expenses, such as preschool fees and healthcare costs for the child, or his or her siblings.
2) A Large Family MediSave Grant (LFMG) of $5,000 will be credited into the mother’s MediSave Account. This can be used to offset pregnancy and delivery expenses, as well as for approved dependants’ medical bills and hospitalisation fees.
The first two components of the scheme are eligible for each third and subsequent Singaporean child born on or after 18 February 2025. The final part of the scheme is available to all large families, even those already with 3 or more children.
3) Large Family LifeSG Credits (LFLC) of $1,000 annually for each third and subsequent child, in the years that the child turns 1 to 6 to defray a wide range of household expenses. The CDA trustee of the child (i.e. the person who opened their CDA account) will receive the LFLC credits in their LifeSG app, and can spend it at online and physical merchants which accept payments via PayNow UEN QR and/or NETS QR.
The support measures under the Large Families Scheme will provide additional financial support of up to $16,000 for each third and subsequent child that couples have.
Source: Ministry of Finance (MOF)
Finally, families with young children can also enjoy more affordable Government-supported preschools as the monthly full-day childcare fee caps will be lowered for the second consecutive year.
From 2026, the monthly full-day childcare fee caps will be lowered from $640 to $610 for Anchor Operator (AOP) preschools and $680 to $650 for Partner Operator (POP) preschools. This means that the childcare centres will not be able to charge fees exceeding these fee caps.
After basic childcare subsidies, a dual-income family will pay about $300 per child, similar to the fees for primary school and after-school student care combined. When coupled with means-tested subsidies, eligible families will enjoy further savings for their children’s overall childcare expenses.
Read Also: Complete Guide To Childcare Operator Fees In Singapore
Equipping Singaporeans For The Future Of Work
The SkillsFuture Level-Up Programme (SFLP) was introduced in Budget 2024 to help mid-career Singaporeans aged 40 and above to boost their employment prospects in their current jobs, or pivot to a new career through reskilling.
Through the Mid-Career Enhanced Subsidy, all Singaporeans aged 40 and above can now take up a second subsidised full-time diploma at the Polytechnics, ITE, and Arts Institutions (i.e., Nanyang Academy of Fine Arts and LASALLE College of the Arts). They can pay for the out-of-pocket course fees with the $4,000 SkillsFuture Credit (Mid-Career) top-ups.
To further encourage individuals to upskill substantively or transition into fields with better future prospects, the Government also announced a monthly training allowance for selected full-time courses, equivalent to 50% of an individual’s latest available 12-month average income for up to 24 months, capped at $3,000 per month.
This scheme was extended in Budget 2025 to selected part-time courses, providing a fixed $300 in monthly training allowance for those who take up these courses, which will be implemented from early 2026.
Budget 2025 also enhanced the Workfare Skills Support scheme from early 2026, which will provide greater support for lower-wage workers to upgrade their skills at an earlier age.
Modelled after the SFLP, lower-wage workers aged 30 and above will similarly be able to receive a monthly training allowance for selected full-time courses, equivalent to 50% of their average income with a minimum allowance of $300, as well as a fixed $300 per month for selected part-time courses.
This means lower-wage workers do not have to wait till they are 40 years old to enjoy greater support for substantive reskilling and upskilling to upgrade their career prospects.
During Budget 2025, the SkillsFuture Jobseeker Support scheme was also mentioned. Starting from April 2025, the scheme will provide financial support of up to $6,000 over six months. To provide an immediate boost, MOM will pay out $1,500 in the first month of support and taper down the payouts thereafter. The scheme will give workers assurance as they undergo training or search for jobs.
Source: WSG
Enabling Pre-Retirees & Retirees To Build Their Nest Egg And Age Well
There’s no denying that Singapore is a rapidly ageing society. In 2024, there is one senior (aged 65 and above) for every 3.5 working-aged persons (aged 20 to 64). This has significantly fallen from less than 15 years ago, when there were 7.5 working aged persons for every senior citizen.
The Government has to take into account the retirement adequacy of our fast-ageing population while ensuring we age well.
Since 2019, the Government has committed to raising the retirement age from 62 to 65, and re-employment age from 67 to 70 by 2030. Today, the retirement age is 63 and will rise to 64 in July 2026. Similarly, the current re-employment age is 68 and will rise to 69 in July 2026.
The Government also committed to raising the CPF contribution rates for senior workers, enabling those aged above 55 to 70 to set aside more for their golden years. The increase in contribution rates will be fully allocated to the CPF Retirement Account.
While both employees and employers share the increase in CPF contribution rates, the Government also steps in to provide a CPF Transition Offset (CTO) to defray half of the additional cost that employers incur each time an increase is announced.
Budget 2025 was no different – the Government announced the latest increase of 1.5%-points in the CPF contribution rates for senior workers aged above 55 to 65, with effect from 1 January 2026. Similarly, a one-year CTO will be provided to employers to offset half of the 2026 increase in employer CPF contributions.
Source: MOF
The Government also extended the Senior Employment Credit to end-2026, to offset up to 7% of the wages of Singaporean workers aged 60 and above, and earning up to $4,000 per month.
At the same time, seniors are also supported to age well. To beef up the MediSave Balances of seniors with lower balances, the Government will roll out a Matched MediSave Scheme – complementing the Matched Retirement Savings Scheme – to match every dollar that is voluntarily topped-up to their MediSave Accounts from January 2026, up to an annual cap of $1,000. To be eligible, individuals must:
– Be a Singapore Citizen aged 55 to 70
– Own no more than one property
– Have a residential Annual Value of no more than $21,000
– Have an average monthly income of not more than $4,000
– Have CPF MA balances of less than half of the prevailing Basic Healthcare Sum
Helping All Singaporean Households Tackle The Rising Cost of Living
Apart from targeted support, Budget 2025 also outlined broad-based benefits for every Singaporean household, to address cost-of-living concerns.
By now, most households will be familiar with the CDC Vouchers. As announced at Budget 2025, all Singaporean households will receive $800 in CDC Vouchers in two tranches. Similar to previous tranches, half of the amount can be used at participating supermarkets, while the other half at participating heartland merchants and hawkers.
Source: MOF
Also familiar to all HDB households are the U-Save rebates. As announced at Budget 2025, HDB households will receive additional U-Save rebates – beyond the regular GSTV – U-Save rebates that we all enjoy each quarter and the previously announced AP U-Save rebates.
In total, eligible HDB households will receive up to $760 of U-Save in Financial Year 2025. This is double the amount of regular GSTV – U-Save.
As part of the SG60 celebrations, the Government also announced a special SG60 package.
All Singaporeans aged 21 to 59 in 2025 will receive $600 in SG60 Vouchers, and those 60 and above in 2025 will receive $800 in SG60 Vouchers. These work similar to CDC Vouchers – with half allocated for spending at participating supermarkets and the other half at participating heartland merchants and hawkers. These vouchers will be disbursed across July 2025.
Source: MOF
All tax residents in Singapore will also enjoy a Personal Income Tax Rebate of 60% of tax payable, capped at $200 per taxpayer for the Year of Assessment 2025.
Singaporeans aged 18 and above in 2025 will also enjoy a $100 SG Culture Pass, which can be used to purchase tickets for eligible local performances, exhibitions, and experiences such as learning tours and participatory workshops.
In addition, there will also be a one-off $100 ActiveSG Credit Top-Up, which can be used for fees for ActiveSG facilities and ActiveSG programmes.
Read Also: Celebrating SG60: Complete Guide To What Singaporeans Will Be Getting In 2025
Use The Support For You Calculator To Find Out Your Estimated Benefits From Budget 2025
We can look forward to these support measures being disbursed in the coming months. You can refer to this calendar of disbursements.
To learn which schemes we qualify for, we can use the Support For You Calculator to estimate the benefits we and our household may receive from Budget 2025.
We can also head to the Budget 2025 website for more details and updates on the individual schemes.
Read Also: Singapore Budget 2025: 5 Major Announcements That Will Benefit The Average Singaporean
