Budget 2025 was delivered on 18 February 2025. It continued to help companies with rising costs while funding productivity, AI adoption and growth.
Corporate income tax rebate and cash grant
- 50% rebate on corporate income tax payable for YA 2025, capped at S$40,000 per company.
- Active companies with at least one local employee receive a minimum cash grant of S$2,000, even if they have little or no tax payable.
Wage and training support
- Progressive Wage Credit Scheme: government co-funding of wage increases for lower-wage workers raised to 40% for 2025 (from 30%) and 20% for 2026 (from 15%).
- SkillsFuture Enterprise Credit: S$10,000 credit for workforce transformation, which companies can now use to offset costs directly instead of claiming reimbursement afterwards.
Funding for productivity and growth
- S$3 billion top-up to the National Productivity Fund.
- S$150 million Enterprise Compute Initiative to help companies adopt AI tools and computing power.
- A new S$1 billion Private Credit Growth Fund for high-growth local companies.
Foreign manpower
The S Pass levy was standardised at S$650 per month for all S Pass holders from 1 September 2025. See our separate article on recent MOM changes for details.