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 initiative 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 professionals 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.

Equipping young workers for an AI workplace

The Government will also prepare Singapore's future workers and those already in the workforce today for an AI-focused world. Al literacy will be strengthened across all institutes of higher learning (IHL) to ensure students use AI to inculcate rigorous thinking and deep disciplinary skills instead of a shortcut.

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 employers 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.

Strengthening the Singaporean core

To strengthen the Singaporean core, 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 increase in qualifying salaries for older S Pass holders will be impacted one year later, from 2028.

The qualifying salaries for migrant workers in the financial services sector will also go up: Employment Pass from $6,200 to $6,600, and S Pass from $3,800 to $4,000.

Work permit levies will also be adjusted for marine and process, and 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 and Singaporean households can expect cost of living special payments of between $200 and $400, $500 in CDC vouchers, one-off $500 in Child LifeSG credits, and up to $570 in U-Save rebates.

The Labour Movement welcomes the Singapore Budget 2026's worker-focused initiatives

NTUC Labour MPs welcomed the Singapore Budget 2026's worker-centric programmes and initiatives.

The Government's AI masterplan garnered the lion's share of the responses. NTUC Secretary-General Ng Chee Meng called the plan a clear commitment to harness AI as a strategic advantage, particularly the national AI missions, expanded enterprise support, and clearer AI training pathways for workers. He also reiterated NTUC's commitment to continue support workers and companies in harnessing AI. 

NTUC Deputy Secretaries-General also praised Singapore AI plan. Mr Desmond Tan pointed out that the new AI strategy strengthens efforts to equip workers at every stage of life, from tertiary students to PMEs and older workers. Meanwhile, NTUC Deputy Secretary-General Desmond Choo called the redesigned SkillsFuture platform an important step forward in making AI learning pathways clearer and easier to access, particularly for youths who need to understand the skills needed for emerging roles.

Favourable sentiments on Singapore new AI agenda were also echoed by NTUC Assistant Secretaries-General Patrick Tay and Yeo Wan Ling. Mr Tay appreciated the strong push to build PME AI capabilities and support enterprise transformation, while Ms Yeo was encouraged by the strong focus on empowering workers and strengthening skills pathways.

NTUC Nominated MP Sanjeev Kumar Tiwari and NTUC e2i's Stakeholder Management Director Wan Rizal also shared their thoughts on the national AI strategy. Mr Sanjeev pledged that NTUC and the unions will continue working closely with the Government and employers to support skills upgrading and technology adoption, while Mr Rizal said that investing in practical AI training will give workers the confidence and tools to thrive without affecting workers’ well-being.

NTUC MPs also responded positively to the enhanced support for different worker types. NTUC Assistant Secretary-General Melvin Yong, for instance, commended the measures to uplift lower-wage workers, including the higher Local Qualifying Salary, enhanced Progressive Wage Credit, and stronger Workfare Skills Support. He added that he will continue speaking up on narrowing the Progressive Wage Model's wage gaps and other concerns. 

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