Ministry of Manpower Singapore has announced a wide-ranging set of workforce measures under Budget 2026, aimed at strengthening career resilience, improving worker protections and helping businesses adapt to an economy increasingly shaped by artificial intelligence.
During the Committee of Supply debate, Manpower Minister Tan See Leng said the initiatives are designed to ensure companies remain competitive while workers continue to develop meaningful and sustainable careers.
A major focus of the plan is equipping workers with AI-related skills. Employees who enrol in selected artificial intelligence programmes under SkillsFuture will receive a six-month subscription to premium AI tools, allowing them to gain hands-on experience while upgrading their capabilities.
Training support will also increase. From July 2026, the hourly training allowance for self-sponsored learners under the Workfare Skills Support programme will rise from $6 to $10.50. At the same time, SkillsFuture Singapore and Workforce Singapore will merge to form a new statutory body called Workforce and Skills Singapore. The new entity will provide integrated access to training, career guidance and job opportunities through a single platform.
The government will also pilot nine specialised career support programmes targeting different segments of the workforce, including fresh graduates, mid-career professionals, caregivers and seniors. In addition, the Careers and Skills Passport will be expanded to connect users with multiple job portals.
Worker protection reforms are also under review. The ministry is examining updates to the Employment Act Singapore after consulting more than 2,000 stakeholders. The review is expected to propose ways to balance overtime safeguards for lower-wage workers with business flexibility.
Several measures will support inclusive employment. These include stronger flexible work arrangements for caregivers, extending part-time re-employment grants until 2027, and gradually increasing the retirement age to 65 and the re-employment age to 70 by 2030.
Additional steps include raising the Local Qualifying Salary to $1,800 in 2026, extending the Progressive Wage Credit Scheme until 2028, and providing up to 70 per cent funding for job redesign initiatives to help businesses transform roles as technology reshapes the labour market.
