Prime Minister Lawrence Wong, in his capacity as Minister for Finance, delivered Singapore’s Budget 2025 statement on 18 Feb 2025—his first Budget as prime minister. PM Wong described it as “a Budget for all Singaporeans,” in a Facebook post published the day before, and repeated the phrase again in his speech. There’s good reason why.
Titled “Onward Together For A Better Tomorrow”, Budget 2025 is centered around economic strategies for the next bound, opportunities for skills upgrading and jobs for workers, support for Singaporeans across different life stages, and strengthening Singaporeans’ sense of solidarity and unity—especially since 2025 marks SG60, Singapore’s 60th year of independence. Here are 12 key highlights from Budget 2025 that forward these aims.
TLDR: 12 highlights from Budget 2025
For households
- CDC Vouchers: Every Singaporean household will receive $800 in CDC vouchers, split into $500 (May 2025) and $300 (Jan 2026) to help with daily expenses.
- U-Save Rebates: Eligible HDB households will receive up to $760 in U-Save rebates, covering about 3 to 6 months of utility bills.
- Climate Vouchers: HDB households get an extra $100 (total $400), and private property households will now also receive Climate Vouchers to promote energy-efficient upgrades.
For all Singaporeans
- SG60 Vouchers: All Singaporeans aged 21+ will get $600 in SG60 vouchers, with seniors (60+) getting $800, redeemable at hawkers, merchants, and supermarkets.
- More HDB Flats & SBF Exercise: Over the next 3 years, 50,000 new HDB flats will be built, and a second Sale of Balance Flats (SBF) exercise is planned for later this year.
For youths
- LifeSG Credits: Children aged 12 and below will receive $500 in LifeSG credits to help parents with expenses like groceries and utilities.
- Edusave/PSEA Top-Up: All Singaporeans aged 13 to 20 will receive a $500 top-up to their Edusave or Post-Secondary Education Account (PSEA) for school-related expenses.
For families
- Large Families Scheme: Parents with a third (or more) child will get a $5,000 CDA top-up, $5,000 MediSave grant, and $1,000 yearly LifeSG credits (until the child turns 6).
- Lower Childcare Fees: Monthly full-day childcare fee caps will be reduced to $610 (Anchor Operators) and $650 (Partner Operators), making preschool more affordable.
For businesses and workers
- CPF Increase for Older Workers: From Jan 2026, CPF contribution rates for those aged 55-65 will increase by 1.5 percentage points to boost retirement savings.
- SkillsFuture Training Allowance: Mid-career individuals taking full-time courses can receive up to S$3,000/month, while part-time learners will get $300/month from 2026.
- Corporate Tax Rebate: Businesses will get a 50% corporate income tax rebate (capped at $40,000), and the government will increase co-funding for lower-wage workers’ wage hikes.
For households
1. $800 in CDC vouchers to every Singaporean household
Although inflation is easing in Singapore, PM Wong noted that Singaporeans are still adjusting to new price realities. To lessen the load, every Singaporean household will receive $800 in CDC vouchers:
- First $500 to be disbursed in May 2025
- Remaining $300 to be disbursed in Jan 2026
As with previous tranches of CDC vouchers, half can be used at supermarkets, and the other half can be used at merchants and hawkers.
2. Up to $760 in U-Save rebates for eligible HDB households
To help with utility costs, eligible HDB households will receive up to $760 in U-Save rebates this year. That’s double the usual amount of U-Save rebates, and covers about 6 months of utility expenses for 1- or 2-room flats, or 3 months of utility expenses for 3- and 4-room flats.
3. Climate Vouchers top up to $400, extended to private properties
Great news for households looking to go green—Climate Vouchers under the Climate Friendly Households Programme are getting a boost.
HDB households will receive an extra $100, bringing the total to $400 in vouchers. Living in private property? Don’t feel left out. Private property households will be eligible for climate vouchers this year too.
For all Singaporeans
4. $600 in SG60 vouchers for all Singaporeans, $800 for seniors
This year is Singapore’s 60th birthday, but you’re the one getting a present.
All Singaporeans aged 21 and above will receive $600 in SG60 vouchers this year, with an extra $200 for those aged 60 and above.
The SG60 vouchers will function like CDC vouchers—they can be used at all CDC merchants, half to be used at supermarkets, and half at merchants and hawkers.
These SG60 vouchers will be disbursed in Jul 2025, with seniors getting their $800 worth of SG60 vouchers first. Use them before their expiry date on 31 Dec 2026.
Having a child this year? Singapore citizen babies born in 2025 will receive a special SG60 Baby Gift. The specifics are still unknown, but expect more details to come out of the Prime Minister’s Office’s Committee of Supply.
5. Over 50,000 new HDB flats to be built in the next 3 years, second SBF exercise expected in 2025
Prospective homeowners can look forward to 50,000 new flats across the island over the next 3 years, including areas such as Woodlands, Bayshore and Mount Pleasant. This year alone, we can expect some 19,600 Built-to-Order (BTO) flats across 3 sales exercises—the first of which just came to a close yesterday (17 Feb 2025).
Think BTO waiting times are too long? About 3,800 flats to be offered this year will be ready in less than 3 years—that’s around 20% of the 2025 BTO flat supply.
Another option for home buyers who are looking for a home sooner is a Sale of Balance (SBF) flat. Fresh off the back of the biggest SBF exercise in Singapore’s history, PM Wong confirmed in Budget 2025 that HDB also plans to launch another SBF exercise later this year.
For youths
6. LifeSG credits for children aged 12 and below
Remember the LifeSG credits that NSmen received last year? This year, every child aged 12 and below will receive $500 worth of the same credits. Parents can use this to defray expenses for groceries, utilities and pharmacy items.
7. $500 top-up to Edusave or PSEA accounts for students
More good news for our youths: every Singaporean aged 13 to 20 years old this year is set to receive a $500 Edusave or Post-Secondary Education Account top-up. These funds can be used to pay for certain school fees and charges, enrichment programs, and approved educational expenses in Singapore.
For families
8. Large Family Scheme: $5,000 CDA Top-Up, $5,000 MediSave Grant, $1,000 annual LifeSG credits
Thinking about having a third (or more) child? Or already part of a big family? The new Large Families Scheme is bringing more financial support your way with these benefits:
- Bigger CDA First Step Grant – Parents will get an extra $5,000 in their Child Development Account (CDA) for each third and subsequent child born from today.
- New Large Family MediSave Grant – Another $5,000 will be credited to mum’s MediSave account for each third and subsequent child.
- Annual LifeSG Credits – Families will receive $1,000 every year for each third and subsequent child, from age 1 to 6.
ALSO READ: Baby Bonus Scheme in Singapore—How Much Can Parents Get?
9. Monthly full-day childcare fee caps to be reduced—$610 for Anchor Operators
Parents, here’s a little relief for your wallets. The government is lowering monthly childcare fee caps in government-supported preschools, building on last year’s support.
From 2026, childcare fees at Anchor Operators will drop by $30 to $610/month, while Partner Operators will be capped at $650/month.
For dual-income families, this means you’ll only pay $300 per child after basic childcare subsidies. Lower- and middle-income families will pay even less with additional support.
For businesses and workers
10. CPF contribution rates to increase by 1.5% for those aged 55 to 65
From 1 Jan 2026, CPF contribution rates for Singaporeans and PRs aged 55 to 65 earning above $750/month will increase by 1.5 percentage points to help boost retirement savings.
| CPF contribution rate from 1 Jan 2026 (% of wage) | |||
| Employee’s age (years) | Total | By employer | By employee |
| >55 to 60 | 34% (+1.5%) | 16% (+0.5%) | 18% (+1%) |
| > 60 to 65 | 25% (+1.5%) | 12.5% (+0.5%) | 12.5% (+1%) |
The goal is to gradually raise CPF rates to 37% for those 55-60 and 25% for those 60-65 by 2030, aligning with longer working years. However, this timeline may adjust based on economic conditions. This is part of ongoing CPF increases since 2022 to strengthen retirement security.
11. New $300 SkillsFuture Mid-Career Training Allowance for part-time courses
If you’re a mid-career individual looking to upgrade your skills—whether full-time or part-time—this one’s for you.
Starting mid-March 2025, Singaporeans enrolling in eligible full-time training programs can apply to receive up to $3,000 per month in SkillsFuture Mid-Career Training Allowance. Specifically, the allowance will cover 50% of their average income (based on the past 12 months), and is capped at S$3,000 per month. The first payout will be in Apr 2025.
From early 2026, this allowance will also be available for part-time training. Those who continue working while taking eligible part-time courses will receive a fixed $300 per month to help with training-related expenses.
The SkillsFuture Mid-Career Training Allowance is part of the broader SkillsFuture Level-Up Programme. Introduced at last year’s budget, this programme gives mid-career Singaporeans more support to upgrade their skill—all Singaporeans aged 40 and above receive $4,000 in SkillsFuture Credit to help fund their training.
12. 50% corporate income tax rebate for businesses
The Singapore government is giving a 50% corporate income tax rebate in 2025 to help companies cope with rising costs. Additionally, all active companies with at least 1 local employee in 2024 will get at least $2,000, with a maximum rebate of $40,000.
Businesses can also rest assured that the government will continue to support their lower-wage workers by increasing co-funding for wage hikes under the Progressive Wage Credit Scheme:
- 2025: 40% (up from 30%)
- 2026: 20% (up from 15%)
Found this article useful? Share the Budget 2025 highlights with your family and friends!
About the author
Vanessa Nah pens articles on the ins and outs of buying your first home, the T&Cs of credit cards, and the ups and downs of alternative investments. A researcher at heart, she gets a kick out of breaking down complex finance concepts for the everyday Singaporean. When Vanessa’s not debunking finance myths, you’ll find her attending dance classes, fingerpicking a guitar, or (most impawtently) fulfilling her life mission to make her one-eyed cat the most spoiled and loved kitty in the world.
Related Articles
CPF Guide Singapore: CPF Contribution Rates, Ceilings, Retirement Sum and More (2025)
Buying an HDB BTO Flat in Singapore: A Step-By-Step Guide (2025)