Budget 2026: Government to boost support for mid-career workers

The Government plans to support workers across all levels to build a resilient and skilled workforce in 2026, said Prime Minister Lawrence Wong.

During the Budget statement on Feb 12, PM Wong said that the Singaporean workforce is at "the centre of everything we do".

"Ultimately, what matters is not just the policies we announce, but the outcomes they deliver in people's lives," he said, referencing an earlier release by the Ministry of Finance earlier this month that showed how the nation has made progress in terms of broad-based wage increases and narrowing income gaps.

PM Wong said that those improvements did not happen by chance, and that greater inequality would likely result from slowing economic growth if left entirely to market forces.

"Every Singaporean, regardless of where they start in life, should have a fair chance to pursue their aspirations and realise their full potential," he said.

Uplifting lower-wage workers

In this Budget, the Government will continue to strengthen support for lower-wage workers, PM Wong said.

The Local Qualifying Salary (LQS) — known as the minimum salary that local employees must be paid in firms that hire foreign workers — will be raised to $1,800 from $1,600.

To help businesses cope with the increased labour costs as a result of the higher LQS, the Government will also be enhancing the Progressive Wage Credit Scheme.

The scheme, which co-funds wage increases for lower-wage workers, will be extended for an additional two years to 2028, with Government funding to be raised from 20 per cent to 30 per cent this year.

This scheme was introduced in Budget 2022 to provide transitional wage support for employers.

Supporting mid-career workers 

Mid-career workers aiming to reskill and pivot into new roles will also receive additional support through the SkillsFuture Level-Up Programme.

Introduced in 2024, the programme has garnered strong support with over 60,000 Singaporeans aged 40 and above benefitting from such training courses, he pointed out. 

PM Wong said that the Mid-Career Training Allowance will be extended from March onwards to those who take up part-time training. More industry-relevant courses will be added to the SkillsFuture Level-Up Programme.

Under the scheme, eligible mid-career Singaporeans receive training allowances to support their participation in selected upskilling and reskilling programmes."

Strengthening the senior workforce

Amid a rapidly ageing population and a declining labour force, the Government also aims to support seniors in the workforce, PM Wong said.

"We will support our seniors so that they can continue to contribute meaningfully," he said.

PM Wong also added that employers will also be supported in terms of creating age-friendly roles and multi-generational workplaces to support the seniors in the labour force.

According to PM Wong, the Senior Employment Credit programme — which provides businesses with wage offsets for employing seniors aged 60 and over — will be extended to the end of 2027.

The Ministry of Manpower will also be sharing their findings and recommendations from a tripartite workgroup focused on senior employment later in 2026.

Workforce Singapore and SkillsFuture Singapore to merge

A new statutory board will also be formed by the merging of Workforce Singapore (WSG) and SkillsFuture Singapore (SSG), announced PM Wong.

It will be jointly overseen by the Ministry of Manpower (MOM) and the Ministry of Education (MOE).

WSG and SSG will continue providing their usual services until the new agency is ready to take over. 

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dana.leong@asiaone.com