Singapore Budget 2024 - HR and Employment Highlights

The cost of living for homes and businesses, as well as efforts to increase economic competitiveness, encourage young families, and help workers stay relevant, were announced. The government plans to spend over $131 billion to "forge a stronger and more united nation".

The full Budget Statement is available at mof.gov.sg/singaporebudget and the Ministry of Finance’s media release is available at mof.gov.sg/singaporebudget/media-centre/media-releases.

The HR highlights are set out below.

SkillsFuture

• Employers are encouraged to implement workforce transformation and enterprise initiatives by using the SkillsFuture Enterprise Credit.
• The government will introduce a new SkillsFuture Level-Up Programme to better support mid-career workers.

Uplift lower-wage workers

• The qualifying monthly wage cap will be raised from $2,500 to $3,000, with higher Workfare payments of up to $4,900 per year.
• The Local Qualifying Salary will increase from $1,400 to $1,600 on 1 July 2024. The minimum hourly rate will increase from $9.00 to $10.50 per hour.
• To support firms in uplifting lower-paid employees, the Progressive Wage Credit Scheme will expand co-funding support for salary increases given in qualifying year 2024. This is to help employers manage the compounding effect of annual salary increases.

Central Provident Fund

• The next increase in senior workers’ Central Provident Fund (CPF) contribution rates for workers aged above 55 to 65 will take effect on 1 January 2025. The CPF Transition Offset will be extended to employers for another year to cover half of the increase in employer contributions for 2025.
• The government will increase the Enhanced Retirement Sum to $426,000, which will be 4 times higher than the Basic Retirement Sum.
• The Central Provident Fund Special Accounts of persons aged 55 and above will be closed from 2025.
• The Silver Support Scheme will be enhanced for seniors who had low earnings during their working years and have less family support.
• The Matched Retirement Savings Scheme, which helps Singaporeans aged 55 to 70 with less Central Provident Fund (CPF) savings by giving dollar-for-dollar matching for cash top-ups to their CPF accounts, will be expanded.

Retirement

• Singaporeans will receive further assistance to improve their retirement sufficiency under the Majulah Package. The Majulah Package provides Singapore citizens born in 1973 or earlier, particularly those born between 1960 and 1973 ("Young Seniors" in their 50s and early 60s), with enhanced retirement benefits.

Medisave Bonus

• As part of government efforts to assist Singaporeans reduce healthcare costs and accumulate medical savings for retirement, all adults aged from 21 to 50 will receive a one-time MediSave Bonus of up to $300.