Singapore Budget 2026: New and enhanced work initiatives and schemes to support workers

In a world fraught with global uncertainty and technological disruption, Singapore must be prepared to charge ahead to succeed.

Prime Minister Lawrence Wong has announced a bold Singapore Budget 2026 that puts AI at the forefront of Singapore’s strategy for the upcoming year.

“Success alone will not carry us boldly in a profoundly changed world. Standing still is not an option. We cannot wait for conditions to turn more favourable, nor can we fall back on strategies designed for a previous era,” said Mr Wong, in his Budget statement on 12 February in Parliament.

“We therefore have a full agenda in this term of Government to refresh our strategies and strengthen our social compact,” he added.

What this means is: Workers in Singapore must be prepared to change to succeed. To help you, there is a suite of new and enhanced schemes to support workers with AI and other challenges brought on by economic uncertainty.

AI-Ready strategies to help workers and Singapore navigate changes

In recent years, various NTUC MPs have been asking for more support to help workers navigate the challenges brought about by AI and other technological disruptions. Many of the schemes announced below answer their calls.

New AI Council to plan Singapore’s AI agenda

The Government will be setting up the national AI Council aimed at providing strategic AI direction and driving the national AI agenda. Its key mission will be to oversee the newly launched AI Missions to help firms transform key sectors of the economy, including its workers.

Mr Wong will chair the AI Council, supported by key ministers in his cabinet, including Deputy Prime Minister Gan Kim Yong, and Manpower Minister Tan See Leng.

Expansion of TechSkills Accelerator for mid-career workers

Right now, the TechSkills Accelerator helps mid-career workers transition into tech roles. The new version will be extended to the accountancy and legal professional for a start, before being introduced into other fields.

Complimentary subscription to premium AI tools

To accelerate workers’ AI learning, the Government will be providing six months of free access to premium AI tools for selected AI SkillsFuture courses.

Transforming the SkillsFuture portal to an AI-friendly site

Currently, it may seem difficult to navigate thousands of courses on the SkillsFuture website. But a refresher is in store to redesign the portal to make AI courses clearer and easier to access.

Enabling mid-career workers in Singapore

NTUC MPs have also been working to help mid-career PMEs thrive in their careers.

Extension of the SkillsFuture Level-Up Programme for more PMEs to benefit

The Government has answered the call with a continued enhancement of the SkillsFuture Level-Up Programme, which will be progressively expanded to cover more industry-relevant courses.

Helping seniors work longer and build more retirement adequacy

From retirement adequacy and better skills to working longer, NTUC has been championing the needs of seniors for many years. Many of the schemes announced at Budget 2026 are spurred by its strong advocacy.

Increased CPF contribution rates for higher retirement savings

Through NTUC MPs' advocacy efforts, CPF contribution rates have been growing steadily for senior workers aged above 55 to 70 since 2019.

These increases will continue until 2030 until workers aged above 55 to 60 will have the same CPF contribution rates as their younger counterparts.

The next CPF contribution increase in 2027 will be a total of 2.5 per cent for workers aged above 55 to 60; and a total of 2 per cent for those aged above 60 to 65.

CPF top-up to boost retirement adequacy

To provide a retirement boost to lower-income seniors, the Government will top-up the CPF balances of Singaporeans aged 50 and above in 2026. Those with CPF retirement balances below $60,000 will receive $1,500. Meanwhile, seniors who have at least $60,000 in their retirement balances but below the 2026 basic retirement sum of $110,200, will get a $1,000 top-up.

Extend Senior Employment Credit to enable older workers to work longer

Many older workers want to work longer and contribute to Singapore. So, the Government will help by extending the Senior Employment Credit to end-2027 to support employers who are employing older workers.

More funding for healthcare needs

Undeniably, older workers will need more support for their healthcare needs. The Government will top up the Long-Term Care Support Fund by $400 million to fund higher CareShield Life payouts and CareShield Life premium subsidies.

Help lower-wage workers achieve better jobs and live better lives

Higher salaries for lower-income locals

Salaries for lower-wage workers look set to go up with this year’s Budget support.

The Local Qualifying Salary (LQS), currently paid to all low-income local employees not covered by the Progressive Wage Model, will be raised from the current $1,600 to $1,800, from 1 July 2026.

Expanded Progressive Wage Credit to support employers will higher wage bills

To support workers who must fork out higher wage bills, the Government will increase the transitional wage support or Progressive Wage Credit to 30 per cent, up from the current 20 per cent. The support will be given in 2027 and 2028. The minimum qualifying wage increase, that is the minimum amount employers have to pay, will also be upped from $100 in 2027 to $200 from 2028 onwards to give workers higher salaries.

Enhanced Workfare Skills Support to improve lower-wage workers’ skills

The longstanding Workfare Skills Support has helped lower-wage workers upskill. The Government will enhance the basic tier to further support lower-wage workers’ training needs.

Improved Comlink+ Progress Packages uplift lives and livelihoods

To support lower-income families, the ComLink+ Progress Package will be enhanced to better support them.

On the employment front, every worker that currently receives $450 to $550 in cash and CPF every quarter for staying in a job that pays at least $1,600 will now see an improvement to $1,250 for each household. The new enhancement will be based on the total household income of at least $2,000.

Other enhancements include more cash payouts for preschool children’s good attendance and an increased payout cap for all ComLink+ Progress Package support services from $30,000 to $50,000.

Supporting Caregivers to better manage work and life commitments

Over the years, Labour MPs have been calling for caregivers to have more support to manage work and life commitments, and the Budget 2026 has heard their calls.

Enhanced preschool and student care subsidies

Good news for working parents with children. The Government will be raising the monthly household income eligibility threshold to $15,000 for preschool subsidies and $6,500 for student care services. This means more working caregivers can have peace of mind while they work.

Relooking migrant worker growth in Singapore

Migrant employees will be more expensive to hire under adjustments to foreign worker policies from January 2027. Employment Pass minimum qualifying salaries will be increased from $5,600 to $6,000. Meanwhile, the qualifying salaries for S Pass holders will rise from $3,300 to $3,600.

Additionally, the qualifying salaries for older S Pass holders will be impacted one year later, from 2028.

Work permit levies will also be adjusted for marine and process sectors, manufacturing and services sectors, taking effect in 2028.

Cost-of-living payments for workers and families in Singapore

Now for the announcement everyone is waiting for: cost-of-living payments will be around from 2026 to 2027!

Eligible Singaporeans can expect cost of living special payments of between $200 to $400, $500 in CDC vouchers, and up to $570 in U-Save rebates.

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