Budget 2025: What It Means for Singaporeans

1. $800 in CDC Vouchers for Every Household

With inflation still a concern, the government is providing $800 in CDC vouchers to every Singaporean household to ease the cost of living. These vouchers will be distributed in two phases:

• $500 in May 2025
• $300 in January 2026

Half of these vouchers can be used at supermarkets, while the other half is allocated for hawkers and heartland merchants.

2. U-Save Rebates of Up to $760

To help with utility expenses, eligible HDB households will receive up to $760 in U-Save rebates in 2025. This additional support will cover three to six months’ worth of electricity and water bills for lower-income households.

3. Expansion of Climate Vouchers to Private Property Owners

The government is boosting the Climate Friendly Households Programme by increasing the voucher amount for HDB households to $400 and extending the initiative to private property owners for the first time. This move aims to encourage energy-efficient home upgrades.

For All Singaporeans: Direct Cash Benefits & Housing Support

4. SG60 Vouchers for Every Singaporean

To commemorate Singapore’s 60th year of independence, all Singaporeans aged 21 and above will receive $600 in SG60 vouchers. Seniors aged 60 and above will receive $800. These vouchers can be redeemed at supermarkets, hawkers, and local merchants, similar to CDC vouchers.

5. More Affordable Housing and a Second Sale of Balance Flats (SBF) Exercise

HDB will construct 50,000 new flats over the next three years, with 19,600 flats being launched in 2025 alone. Additionally, a second Sale of Balance Flats (SBF) exercise will be introduced later in the year to provide more housing options for Singaporeans who need immediate accommodation.

For Youths: More Educational & Financial Support

6. LifeSG Credits for Children

Children aged 12 and below will receive $500 in LifeSG credits, which can be used for essential expenses like groceries and utilities. This initiative aims to help parents manage their household costs better.

7. $500 Top-Up to Edusave and PSEA Accounts

To support students, the government will top up $500 into Edusave or Post-Secondary Education Accounts (PSEA) for Singaporeans aged 13 to 20. These funds can be used for school fees, enrichment programs, and other approved educational expenses.

For Families: Strengthening Parenthood Incentives

8. Large Families Scheme for Bigger Households

Families with three or more children will receive enhanced benefits, including:

• $5,000 Child Development Account (CDA) Top-Up
• $5,000 MediSave Grant for healthcare costs
• $1,000 per year in LifeSG credits (until the child turns six)

These incentives aim to alleviate the financial pressures of raising larger families.

9. Lower Childcare Fees

To make early childhood education more accessible, the government has reduced monthly childcare fee caps to $610 for Anchor Operators and $650 for Partner Operators, making preschool more affordable for working parents.

For Workers & Businesses: Enhancing Retirement Savings & Upskilling Opportunities

10. CPF Contribution Increase for Older Workers

To help Singaporeans save more for retirement, CPF contribution rates will increase by 1.5 percentage points for workers aged 55-65, effective January 2026.

11. Higher SkillsFuture Training Allowances

To encourage lifelong learning, mid-career professionals enrolling in full-time courses will receive up to $3,000 per month, while part-time learners will get $300 per month starting in 2026.

12. Corporate Tax Rebate & Wage Support

Businesses will benefit from a 50% corporate tax rebate (capped at $40,000) to help sustain growth. Additionally, the government will increase co-funding for salary hikes of lower-wage workers to enhance social mobility.

Financial Tips

Hey there! Managing your finances in Singapore can be overwhelming, but with the right strategies, you can build financial security and even work towards financial freedom. Budget 2025 introduced several measures that can support your financial journey, and here’s how you can make the most of them:

1. Save Before You Spend – With the additional support from Budget 2025, like CDC vouchers and SG60 vouchers, you can reduce your daily expenses and direct more of your income into savings or investments.
2. Maximize Government Schemes – Singapore offers various schemes to help with savings, like CPF top-ups for older workers, MediSave grants for families, and rebates like U-Save for utilities. Take full advantage of these to strengthen your financial stability.
3. Invest Smartly – Leaving your money idle in a savings account won’t help much against inflation. With schemes like SkillsFuture Training Allowance, you can invest in your education and skills to boost your earning potential in the long run.
4. Track Your Expenses – With cashless payments everywhere, it’s easy to lose track of spending. Use budgeting apps to ensure that even with rebates and vouchers, you don’t overspend unnecessarily.
5. Build an Emergency Fund – Government support measures like lower childcare fees and LifeSG credits for children can help reduce your financial burden, allowing you to set aside more for emergencies.
6. Clear High-Interest Debt First – If you have outstanding loans or credit card debt, prioritize paying them off. The corporate tax rebates and co-funding for wage hikes in Budget 2025 may improve job security and earnings, allowing you to manage debt better.
7. Plan for Retirement Early – With CPF contribution increases for older workers starting in 2026, you can benefit from higher retirement savings. Consider topping up your CPF Special Account to maximize returns and tax relief.
8. Be Insurance-Savvy – Medical costs in Singapore can be hefty. Ensure you have the right insurance coverage, including MediSave grants and additional healthcare benefits introduced in Budget 2025.
9. Be Wary of Lifestyle Inflation – With extra financial support from the government, avoid the temptation to overspend. Stick to your financial goals and use extra funds wisely.
10. Keep Learning About Money – Financial literacy is a lifelong journey. Follow credible sources, stay updated on government incentives like SkillsFuture Training Allowance, and make informed decisions about your finances.

Budget 2025 offers many opportunities to strengthen your financial future. Use these measures wisely, and you’ll be on the right track to financial security!