Singapore’s Budget 2025 – What HRs Need to Know
Singapore’s Budget 2025 outlines several initiatives aimed at supporting businesses and strengthening the workforce.
This Pacific Prime CXA article highlights key points relevant to HR professionals, particularly focusing on measures to enhance workforce capabilities, support older workers, and boost HR certification—all in the context of a changing economic landscape.
1. SkillsFuture Workforce Development Grant
One of the pivotal initiatives introduced in the Budget 2025 is the SkillsFuture Workforce Development Grant. This grant is designed to assist companies in restructuring and enhancing their workforce capabilities.
The program consolidates existing initiatives from various agencies, streamlining the application process for businesses.
Eligible companies can receive up to 70% funding for job redesign efforts, allowing them to innovate and adapt their operations more efficiently. This initiative reflects the government’s commitment to foster a skilled workforce that can meet the demands of a rapidly evolving job market.
2. Enhanced Senior Employment Credit
The Senior Employment Credit (SEC) is another critical measure aimed at supporting employers who hire older workers. The SEC will now be extended until December 31, 2026.
This initiative helps businesses manage the wage costs associated with employing Singaporeans aged 60 and above who earn less than SGD $4,000 monthly.
Furthermore, the SEC’s qualifying age for the highest support tier has been raised to 69, aligning with the upcoming increase in the re-employment age.
Under this scheme, companies can receive reimbursements of up to 7% of the wages for these employees, encouraging more businesses to retain experienced workers.
3. SkillsFuture Level-Up Programme
Launched in 2024, the SkillsFuture Level-Up Programme provides SGD $4,000 in SkillsFuture Credit for all Singaporeans aged 40 and above. This initiative supports mid-career professionals looking to upskill.
Starting from mid-March 2025, eligible individuals who enroll in full-time training programs can apply for the SkillsFuture Mid-Career Training Allowance, which offers up to SGD $3,000 per month based on 50% of their average income over the last 12 months.
The allowance will also be available for selected part-time training starting in early 2026, with a flat rate of SGD $300 per month to help offset training expenses. This program underscores the government’s commitment to lifelong learning and continuous professional development.
4. Uplifting Employment Credit
The Uplifting Employment Credit is another initiative that will be in force for an additional three years until December 31, 2028. This scheme provides a wage offset of up to 20% for local ex-offenders during their first nine months of employment, capped at SGD $600 per month per employee.
This program has supported nearly 700 employers in hiring over 1,500 ex-offenders in 2024. The extension of this credit reflects the government’s commitment to facilitating the reintegration of ex-offenders into the workforce, thereby promoting inclusivity and diversity in employment.
5. Enabling Employment Credit
The Enabling Employment Credit, which offers wage offsets for employers hiring local employees with disabilities aged 13 and above who earn below SGD $4,000, will also be in force until the end of 2028.
This credit aims to encourage businesses to create inclusive work environments that support individuals with disabilities, further enhancing workforce diversity.
6. Boosting Basic HR Certification
In addition to the initiatives outlined in its Budget 2025, the Singapore government will enhance funding support for basic HR certification. This measure aims to strengthen HR leadership amid ongoing global uncertainties.
The funding will temporarily increase to support HR professionals in attaining certification from the Institute for Human Resource Professionals, which recognizes their skills and competencies.
The importance of strong HR leadership is emphasized as a critical factor in managing workforce dynamics during challenging times. By bolstering HR capabilities, the government aims to ensure that businesses are well-equipped to navigate the complexities of the current labor market.
7. Enhanced Support for Jobseekers and Localized Job Matching
From April 2025, the SkillsFuture Jobseeker Support scheme will offer financial assistance of up to SGD $6,000 over six months for unemployed individuals. This initiative will support job seekers during their training or job search periods.
Additionally, the program will expand career matching services, including localized job matching available at all Community Development Councils, making it easier for job seekers to find employment close to their homes.
8. Redesigned SkillsFuture Enterprise Credit for Enhanced Accessibility
The SkillsFuture Enterprise Credit is undergoing significant changes to simplify access for businesses. This revamped program will transition from a reimbursement model to an online wallet system.
Companies will be able to view their credit balance in real-time and utilize these funds instantly for workforce transformation initiatives and training programs.
Starting from mid-2026, businesses with a minimum of three resident employees will receive a credit of SGD $10,000, valid for three years. The existing credit scheme, initially set to expire in June 2025, will be in place until the new version is fully operational.
9. Progressive Wage Credit Scheme Enhancements
The government will support lower-wage workers through enhancements to the Progressive Wage Credit Scheme. In 2025, the co-funding level for wage increases will rise from 30% to 40%.
This increase will further support employers in raising wages for their lower-wage employees. The co-funding level will increase to 20% in 2026, reinforcing the government’s commitment to improving wage standards.
10. Corporate Income Tax Rebate
For the Year of Assessment 2025, the government will implement a 50% corporate income tax rebate to assist businesses in managing their cash flow amid rising operational costs.
Companies that employed at least one local employee in the previous year will qualify for a minimum rebate of SGD $2,000, with a cap set at SGD $40,000 per company. This initiative aims to ease the financial burden on businesses and foster economic stability during challenging times.
11. Higher CPF Contribution Rates for Older Workers
Beginning January 1, 2026, the Central Provident Fund (CPF) contribution rate for Singaporean and permanent resident employees aged 55 to 65 will increase by 1.5%. This adjustment aims to bolster the retirement savings of senior workers as they approach retirement age.
Contact Pacific Prime CXA for Employee Benefits Solutions
With a focus on skills development, support for older workers, and the enhancement of HR capabilities, Singapore is gearing itself up for the challenges down the road.
In the same vein, your organization can upgrade its competitiveness and attractiveness in the talent market by offering a well-curated range of employee benefits.
With decades of experience in insurance and employee benefits, Pacific Prime CXA is well positioned to provide the ideal solutions for your organization’s needs and budget while furthering its objectives.
With our Prime Care Portal, which is available to all our employee benefits clients for no extra fees, your entire employee benefits administration process can be simplified, saving time, money, and stress.
Contact us today, and let us help your organization become even more attractive to top talent!
Since joining Pacific Prime, Martin has become even more aware of the gap between the true value of insurance products and most people’s appreciation of it, and developed a passion for demystifying and simplifying matters, so that more people get the protection they need at a cost they can easily afford.
In his free time, Martin attends concerts of various genres, and plays the violin with piano accompaniment he pre-recorded himself or played live by his niece.
