SG Budget 2025: Is A Pay Raise Really Coming?
This week, Singapore announced its 2025 fiscal budget. The budget covers various aspects, including living subsidies (S$800 CDC Vouchers), childbirth incentives (S$5,000 bonus for each third child), reduced tuition fees, employment and job support, business subsidies, transportation, and housing.
One of the most relevant topics for workers is salary increases. The planned wage adjustments will take effect in 2025, with higher increments over the next two years.
In recent years, Singaporeans have struggled with inflation. Although inflation has fallen to 1.6%, the cost of living remains high without wage growth.
So, is a pay raise really coming?
The new budget aims to increase wages for low-income workers while helping employers manage labor costs. To achieve this, the government will enhance the Progressive Wage Credit Scheme (PWCS) by raising subsidies for wage increases.
In 2025, the government will increase its co-funding for wage increments from 30% to 40%.
In 2026, the subsidy will rise from 15% to 20%.
According to Singapore's 2024 median salary data across different age groups and education levels, the median wage stands at around SGD 5,000.
While the government has introduced these support measures, actual salary increases will still depend on the economy and individual company performance.
Do you think you will benefit from this wage adjustment plan?
How do you view the Budget 2025?
Which part is the best or the worst?
Share your thoughts in the comment section and win tiger coins~
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I appreciate the cost-of-living support, like the CDC Vouchers and reduced tuition fees, which help ease financial pressure. Childbirth incentives also benefit families, but these measures may be short-lived if inflation rises. More long-term solutions, such as housing affordability & sustainable wage growth, would have a greater impact.
Overall, while the budget provides relief for specific groups, middle-income workers may not see much direct benefit. Businesses need stronger incentives beyond subsidies to ensure sustainable wage growth. Its success will depend on how well these policies are implemented.
@Tiger_SG @TigerStars @Tiger_comments @TigerGPT
I hate CDC vouchers especially supermarket as I don’t think they will bring back $5 denomination. I m being force to buy at least $10 or keep it for a raining day. [Anger]
Gone are the days where I will check what are my entitlements. Now I just have to check my bank account or CPF to determine what I will get when everyone is talking about it.
I just hope that Gov will not remove 2.5xdonation for income tax. I m relying heavily for bringing down my income tax. [Bless][Bless][Bless]🙏🙏🙏
I think I will continue to get salary increment. The bottom line is what %. 🧐🤨[Thinking]
@Universe宇宙 @Kaixiang @Wayneqq @Success88 @SPOT_ON @HelenJanet @Fenger1188 @DiAngel @rL come join
The new budget aims to increase wages for low-income workers while helping employers manage labor costs. To achieve this, the government will enhance the Progressive Wage Credit Scheme (PWCS) by raising subsidies for wage increases.
In 2025, the government will increase its co-funding for wage increments from 30% to 40%.
In 2026, the subsidy will rise from 15% to 20%.
According to Singapore's 2024 median salary data across different age groups and education levels, the median wage stands at around SGD 5,000.
@SPACE ROCKET @TigerGPT @HelenJanet @rL @Universe宇宙 @LMSunshine @koolgal @GoodLife99 @Shyon @Aqa
Do you think you will benefit from this wage adjustment plan?
How do you view the Budget 2025?
Which part is the best or the worst?
Share your thoughts in the comment section and win tiger coins~
至于2025年预算，我认为政府在平衡经济增长和民生保障方面做出了努力，比如针对中低收入群体的补贴、税收调整，以及对企业的支持。但更值得关注的是，政府是否能在全球经济不确定性加剧的情况下，确保新加坡的竞争力和就业市场的稳定。
如果要选最好的部分，我认为对技能培训和职业转换的支持是最有价值的，毕竟未来的就业市场变化快，持续学习才是关键。而最具挑战的部分，可能是针对企业的税收调整，如果企业成本上升，可能会影响招聘和加薪力度，最终还是会影响打工人的实际收入增长。
As you may have seen Francis on TV, here's a brief introduction: Francis Tan, Indosuez's Asia Chief Strategist, brings over 20 years of financial expertise from UOB. Specializing in Asian economics and investment, he's a key figure in wealth management. While a respected expert, he's not a constant media presence.
He is so insightful of talking about Singapore economy. Singapore have a great planning on the future and we must must contended with what we have. Especially safety and security