15 Highlights of Budget Speech 2024 Simplified & Summarised for You

It’s the most wonderful time of the year!

No, we’re not referring to Christmas. We’re referring to the Budget Speech 2024 — when Singaporeans find out whether we’ll get more “free” money from the government.

And spoiler alert, we are.

On 16 February (Friday), DPM Lawrence Wong gave the Budget Speech 2024. Here are all the highlights of the Budget Speech 2024, or at least the ones which you’re more likely to be affected by, simplified and summarised.

All Singaporean Households to Receive Additional $600 Worth of CDC Vouchers

Remember how shiok it was to pay for your wanton mee with the Community Development Council (CDC) vouchers?

Well, all Singaporeans can now rejoice — all Singaporean households are to receive an additional $600 worth of CDC vouchers as part of an enhancement to the Assurance Package!

The first $300 worth of CDC vouchers will be disbursed by the end of June 2024, while the remaining $300 will be disbursed in January 2025.

The second disbursement will be just in time for your 2025 CNY expenses.

Truly, heng ong huat.

If you’ve already forgotten how to use the CDC vouchers, we recommend playing more mahjong this CNY to keep your brain active.

All jokes aside, visit this website to refresh your memory on how to use the CDC vouchers when the first tranche rolls out in June this year.

Eligible Singaporeans to Receive One-Off Cost-of-Living Special Payment

Of course, that is far from the end of all the enhancements to the Assurance Package.

If you’re an adult Singaporean with an income not exceeding $100,000 and not owning more than one property, congratulations — you’re eligible to receive a one-off cost-of-living special payment from our gahmen.

The quantum of this one-off payment ranges between $200 to $400.

You’ll get this in September 2024.

If your annual income is less than $22,000, you’ll get $400. If it’s between $22,000 to $34,000, you’ll get $300. If it’s between $34,000 to $100,000, you’ll get $200.

If you earn over $100,000, you probably won’t even care about this #justsaying.

Eligible HDB Households to Receive One-Off U-Save Rebates

Eligible HDB households will also receive up to $950 worth of one-off U-Save rebates to cope with rising utility bills.

This will cover approximately four months’ utility bills for those living in three-room or four-room HDB flats.

To determine if you’re eligible to receive these U-Save rebates, read more about the criteria here.

Eligible HDB Households to Receive Up to 4 Months’ Rebates for Service and Conservancy Charges

Eligible HDB households will also receive up to four months’ worth of rebates for service and conservancy charges (S&CC).

If you didn’t already know, these rebates will be used directly to offset your S&CC bills. You need not apply for the rebates — they’ll be credited directly to your household’s S&CC accounts managed by your Town Council.

Regardless, if you kaypoh and want to find out if you’re eligible for the S&CC rebates, you can log into My HDBPage via HDB InfoWEB to check your eligibility.

Adjustments to the CPF System

There are a few adjustments to the Central Provident Fund (CPF) system — so you better listen up.

First, the CPF contribution rates for senior workers aged 55 to 65 will be raised by a further 1.5% in 2025.

You better tell your mother about this.

Second, the Enhanced Retirement Sum (ERS), which is the maximum amount that you can put into your CPF Retirement Accounts to receive CPF payouts, will be raised from three times the Basic Retirement Sum to four times the Basic Retirement Sum.

This means the ERS will become $426,000 in 2025.

Third, CPF members aged 55 and above will have their Special Accounts closed.

Yes, you read that right.

The savings in your Special Account will be transferred to the Retirement Account up to the Full Retirement Sum, where you will continue to earn the long-term interest rate.

The remaining Special Account savings beyond the Full Retirement Sum will be transferred to the Ordinary Account.

You already know that the people in the CPF office will be OT-ing…  

NSFs and NSmen to Receive $200 Worth of LifeSG Credits

And for all those serving the nation, regardless of whether you already have an “owadio!” post on Instagram, you’ll be happy to know you’ll receive $200 worth of LifeSG credits.

$200 in LifeSG credits, all for you to spend — well, that’s if you’re not spending it on your “NS GF” instead.

Those enlisting this year will also receive the $200 in LifeSG credits.

50% Personal Income Tax Rebate

Complaints about the cost of living never seem to end — walk into any kopitiam and mention “cost of living,” you’re bound to get a one-hour lecture from the aunties and uncles there.

And the government recognises this as well — that’s why there will be a 50% Personal Income Tax (PIT) rebate for the Year of Assessment 2024, capped at $200.

SkillsFuture Level-Up Programme 

A new SkillsFuture Level-Up Programme will also be introduced.

Huh? Level up simi?

All Singaporeans aged 40 and above will receive a top-up of $4,000 worth of SkillsFuture credits from May 2024.

These credits can be used for selected training programmes with better employability outcomes, such as part-time and full-time diplomas, post-diplomas, undergraduate programmes and Progressive Wage Model sector courses.

Finish training already, confirm can score a job. 

Subsidised Full-Time Diplomas & Monthly Training Allowances

Aside from the SkillsFuture credit top-ups, all Singaporeans aged 40 and above can also receive subsidies to pursue full-time diplomas at polytechnics, the Institute of Technical Education (ITE) and art institutions from the academic year 2025.

Learning really never ends.

And if you’re a Singaporean aged 40 and above enrolled in selected full-time courses, you’re also eligible to receive monthly training allowances.

The monthly training allowance is equivalent to 50% of your average income over the latest available 12-month period and capped at $3,000 monthly.

Free money, how to say no?

Temporary Financial Support Scheme for the Involuntarily Unemployed

If you’re one of the unfortunate ones, perhaps from Shopee, who recently got fired, the government also has your back.

The government is currently working out the parameters for a temporary financial support scheme for the involuntarily unemployed.

More details will be released later this year.

Strategies to Uplift Lower-Wage Workers

The good news is this: income inequality in Singapore, as measured by the Gini coefficient, has declined to its lowest level over two decades.

The bad news is this: this doesn’t mean Singapore can stop here. We still need to continue making adjustments to ensure lower-wage workers are uplifted.

And thankfully, the gahmen has a few things in mind.

First, the Workfare Income Supplement Scheme, which tops up the salaries of lower-income workers, will be enhanced — the qualifying income cap will be raised from $2,500 to $3,000, and lower-wage senior workers will qualify for a maximum annual payout of $4,900, up from $4,200 currently.

Second, the local qualifying salary (LQS) for local employees at companies that hire foreign workers will also be raised. The LQS for full-time workers will be raised from $1,400 to $1,600, while the minimum hourly rate will be raised from $9 to $10.50 per hour.

Of course, these adjustments aren’t going to be made without some form of support for employers of these lower-wage workers. Thus, the Progressive Wage Credit Scheme (PWCS), where the government co-funds wage increases of lower-wage workers with employers, will also be enhanced.

Co-funding levels in PWCS will be raised from a maximum of 30% to 50%, and the PWCS wage ceiling will be raised from $2,500 to $3,000.

$2 Billion Top-Up to Edusave Endowment Fund 

Most Singaporean students are no strangers to the Edusave awards — if you received one, you were ‘smarter’ than the other students. ‘Cooler’ too, perhaps.

Edusave awards will be enhanced to support the Education Ministry’s initiatives.

The Edusave Endowment Fund will be topped by $2 billion to support these goals and other education initiatives.

Parenthood Provisional Housing Scheme (Open Market) Voucher to be Provided for One Year

If you just BTO-ed and you and your partner are looking for a place to stay while waiting for the BTO flat’s completion, you probably know that HDB currently offers subsidised rental housing under the Parenthood Provisional Housing Scheme (PPHS).

However, the government has developed even more ways to support young couples — specifically, through the PPHS (open Market) Voucher.

The voucher is available to eligible families renting an HDB flat in the open market.

$7.5 Billion Set Aside for Majulah Package Fund 

The Majulah Package will also be enhanced. Of course, these enhancements need money.

As such, $7.5 billion will be set aside in a new fund called the Majulah Package Fund — let’s break down which initiatives this sum of money will be going to.

First, an Earn and Save bonus will be provided to help seniors earning up to $6,000 a month accumulate more retirement savings.

These seniors will receive a yearly bonus of up to $1,000 as long as they work.

More mahjong money for your ah ma, I suppose.

Next, a one-time retirement savings bonus of between $1,000 and $1,500 will be given to seniors with retirement savings below the Basic Retirement Sum.

Last, a one-time MediSave bonus will be given to all seniors born in 1973 or earlier. Young seniors with less means will be given the higher tier of $1,500, while all other seniors will receive $750.

More details will be shared by the Minister for Manpower at the Committee of Supply.

All Adult Singaporeans to Receive One-Time MediSave Bonus

Seniors aren’t the only ones receiving MediSave bonuses.

If you’re an adult Singaporean aged 21 to 50, you’ll receive a one-time MediSave bonus of up to $300!

This will help cover smaller medical bills and insurance premiums.

As they always say, health is wealth lah. No wonder the government is giving out MediSave bonuses.

Of course, these highlights are far from the only strategies the government has in mind to ensure Singapore stays afloat and ahead in today’s world.

If you’d like to learn more about the other initiatives covered in the Budget Speech 2024, you can find the complete budget statement here.