Assurance Package
The Assurance Package will be enhanced in the following ways to continue supporting lower- and middle-income Singaporeans as we seek to build a shared future:
- An additional $600 in CDC vouchers for all Singaporean households, $300 each to be disbursed in June 2024 and January 2025.
- Cost-of-Living Special Payments of between $200 to $400 in cash. This will be handed out to citizens aged 21 and above in 2024 and living in Singapore, who do not own more than one property and have an assessable income of up to $100,000.
- U-Save rebates of up to 2.5 times the amount of regular GSTV-U Save or up to $950 for financial year 2024 to help HDB households cope with the higher utility bills. This will be disbursed in April, July, October in 2024 and January 2025.
- Eligible households will receive an additional one-off Service and Conservancy Charges (S&CC) rebate for HDB flats up to a cap of four months in financial year 2024.
GST Voucher Fund
A $6 billion top up to the GST Voucher Fund was announced to help alleviate the burden on lower- and middle-income households arising from the increases in GST rates for the past two years.
Support for the retirement and healthcare needs of seniors
A number of adjustments and enhancements will be made to the CPF system to strengthen assurance and support for the retirement needs of our seniors.
CPF contribution rates change
CPF contribution rates for those aged 55 to 65 will be raised by another 1.5% from 1 January 2025. The Enhanced Retirement Sum will also be increased from three times to four times the Basic Retirement Sum, in order to fund higher payouts in the retirement years. These changes will create added income security to seniors in their golden years.
To mitigate the increased business costs due to the CPF changes, the CPF Transition Offset for employers will also be extended by another year to cover half the increase in employer CPF contributions.
To streamline the CPF system, the CPF Special Account will be closed for members aged 55 and above from the year 2025. Any savings can be transferred to the CPF Retirement Account up to the Full Retirement Sum and continue to earn the long-term interest rate. Any remaining SA savings will be transferred to the Ordinary Account where they will be withdrawable and earn the short-term interest rate.
Enhanced Silver Support Scheme
Singaporeans aged 65 and above who had low incomes during their working years and need greater help in meeting their retirement needs will benefit from the strengthened support to the Silver Support Scheme where:
- The quarterly payments will be raised by 20%, and
- The qualifying monthly per capita household income will be raised to $2,300 from the current threshold of $1,800.
The enhanced scheme will take effect from 1 January 2025.
Enhanced Matched Retirement Savings Scheme
With effect from 1 January 2025, the Matched Retirement Savings Scheme will be enhanced to increase the eligible recipient to those aged above 70, and the matching grant cap will be increased from $600 to $2,000 per annum, with a higher lifetime cap of $20,000. The tax relief for cash top-ups to the CPF will be removed.
Majulah Package
Expected to benefit up to 1.6 million Singaporeans, the Majulah Package, first announced at last year’s National Day Rally, will be expanded to provide more support to meet the retirement needs of eligible older Singaporeans born in 1973 or earlier through one or more of the following new measures:
- An Earn-and-Save yearly bonus of between $400 and $1,000 credited to the CPF account starting 2025.
- A one-time Retirement Savings Bonus of between $1,000 and $1,500 credited to the CPF account.
- A one-time MediSave Bonus of either $750 or $1,500, depending on the individual’s income level.
An additional $7.5 billion will be set aside into a new Majulah Package Fund to cover the lifetime cost of this programme.
Support for young and growing families
Building upon the existing baby bonus scheme and support grants, two key measures were introduced to help lighten the financial burden of young adults seeking to build their families.
Affordable housing
The “Prime, Plus, and Standard” framework will be implemented to make public housing in prime locations more affordable. The Build-To-Order (BTO) flat supply will be increased and priority given to first-timer families. For eligible couples who are waiting for their booked BTO and renting a HDB flat in the open market, a Parenthood Provisional Housing Scheme (Open Market) Voucher will be provided for one year.
Preschool affordability
The Government will reduce monthly child care fee caps in Government-supported preschools, enhance existing preschool subsidies to support a larger group of lower-income families and top up the Edusave Endowment Fund by $2 billion.
Support for Singaporeans with special needs
Maximum monthly fees at Special Education (SPED) schools will be reduced to $90 from $150. Fee caps for Special Student Care Centres will be lowered. Adults with disabilities will also be provided with more support for employment and integration into the community.
ComLink+ Progress Packages
Adults from lower income families can receive a payout of up to $600 per quarter in CPF and/or in cash if they secure a job and stay employed. Those making voluntary contributions to their CPF will also receive matching grants from the Government. The Government will also partner with corporates and community groups to implement the ComLink+ Progress Packages.
Medisave bonus
A one-time Medisave bonus of up to $300 will be provided to all Singaporeans aged between 21 to 50, to finance medical bills, amidst the rising healthcare costs. This is expected to benefit about 1.4 million Singaporeans.
LifeSG credits for National Servicemen
Each eligible past and present national serviceman (including enlistees this year) will receive $200 in LifeSG credits to recognise their contributions to national defence and security.
Charities Capability Fund Collaboration Grant
The Charities Capability Fund Collaboration Grant has been extended for another three years till the end of 2026 to support collaborative projects between charities to increase their efficiency, capabilities and strengthen their governance.
Support for the arts and sports scene
The Government will support the National Arts Council’s Our SG Arts Plan by investing $100 million over the next four years to develop, showcase artists and encourage Singaporeans’ pursuit in this field.
The One Team Singapore Fund will be topped up by $20 million and extended until the end of 2027. Matching donations will be broadened to support local athletes in emerging sports and the SportCares programme for vulnerable children and youth, persons with disabilities, and seniors. The Government will also continue to support the Sports Facilities Master Plan, to provide more sports and recreational facilities for more Singaporeans to participate in sports.
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