Singapore’s Budget 2025 introduces several measures to help businesses manage rising costs, improve workforce skills, and promote inclusive hiring. As businesses navigate economic challenges such as inflation and workforce shifts, these initiatives provide essential financial relief and long-term workforce development support. Many of these measures extend existing schemes, ensuring continued assistance for businesses. Here are the key initiatives employers should know about.
To help businesses cope with higher costs, the government is offering a 50% Corporate Income Tax Rebate to all taxpaying companies, whether tax resident or not, for the Year of Assessment (YA) 2025.
Beyond tax relief, Budget 2025 also focuses on wage support. The government will increase its funding share to support employers in meeting progressive wage requirements for lower-income workers.
This scheme, introduced in 2022, helps businesses adjust to required wage increases while ensuring fair pay for lower-income workers
To further support workforce development, the SkillsFuture Enterprise Credit will be redesigned in 2026 to replace the current scheme and help businesses invest in workforce training, covering up to 90% of out-of-pocket expenses.
To build a more inclusive workforce, the government is extending support for businesses hiring senior workers. The Senior Employment Credit will be extended to 31 December 2026.
This extension ensures continued support for employers in hiring and retaining senior workers.
Continuing the push for inclusive hiring, the Uplifting Employment Credit Scheme, which supports businesses hiring local ex-offenders, is extended until 31 December 2028.
Introduced in Budget 2023, the Uplifting Employment Credit (UEC) encourages employers to hire ex-offenders and support their reintegration into society.
As part of efforts to foster inclusivity, the Enabling Employment Credit has been extended until 31 December 2028 to support businesses in hiring employees with disabilities.
The scheme was introduced in 2021, with the extension to help employers retain and further support employees with disabilities.
Recognising the challenges of rising labour costs, the government will extend the CPF Transition Offset for another year in 2026 to help employers manage increasing CPF contribution rates for senior workers.
This measure ensures a smoother transition for businesses adjusting to higher CPF contributions.
Budget 2025 presents valuable support for businesses, from tax relief and workforce development incentives to inclusive hiring schemes. Employers should leverage these initiatives to manage costs, upskill their workforce, and comply with evolving regulations. By planning ahead and assessing eligibility for these schemes, businesses can maximise benefits and ensure long-term success.
With various Budget 2025 initiatives supporting workforce upskilling, PayrollServe offers payroll training courses, such as the WSQ Process Payroll course, which is eligible for SkillsFuture Enterprise Credits. Employers with remaining SkillsFuture Enterprise Credits, claimable until 30 June 2025, can use them for our WSQ Process Payroll course to gain practical payroll management skills.
Upcoming course dates include:
Beyond training courses, our HR Advisory Services help businesses optimise workforce planning and implement effective HR strategies. We offer guidance on leveraging wage support schemes and improving employee retention to build a stronger workforce.
Contact us today to explore how our expertise can help you maximise the benefits of Budget 2025 and strengthen your workforce for the future.