Budget 2026: Singapore expands progressive wage training as job shifts intensify

Wong said hourly allowances will rise for long-form courses under the wage ladder scheme.

The Singapore government will expand training support for workers under the Progressive Wage Model (PWM) and strengthen national skills and job matching systems, as part of broader efforts to support lifelong learning and workforce transitions.

“We will go further to enhance the basic tier of the scheme and increase the hourly allowance for workers who upgrade their skills. We will also do more to support lifelong learning for all Singaporeans through SkillsFuture,” Prime Minister Lawrence Wong said at the Singapore Budget 2026.

The government will improve the basic tier of the scheme and increase the hourly training allowance for workers who take up long-form courses to upgrade their skills.

Support for lifelong learning through SkillsFuture will also be strengthened. When SkillsFuture was launched more than a decade ago, Institutes of Higher Learning (IHLs) were largely focused on pre-employment training. 

In 2016, SkillsFuture Singapore was set up under the Ministry of Education (MOE) to embed lifelong learning within the education system.

Today, working adults at different stages of their careers can access a wide range of training options across autonomous universities, polytechnics and the Institute of Technical Education. 

Universities such as the National University of Singapore and Nanyang Technological University now offer flexible pathways for alumni and adult learners, including modular courses and stackable credits that can lead to recognised qualifications.

“Last year, more than 600,000 individuals took up training with SkillsFuture support offered by IHLS and private training providers,” Wong said.

SkillsFuture Singapore, overseen by MOE, focuses on skills training, whilst Workforce Singapore, under the Ministry of Manpower (MOM), supports employer engagement and job matching. 

The government said that in view of faster technological change and more frequent job transitions, stronger coordination is required.

Following a recommendation by the Economic Strategy Review Committee, the government will merge SkillsFuture Singapore and Workforce Singapore into a new statutory board jointly overseen by MOE and MOM.

The new agency will serve as a single point of contact for skills training, career guidance and job matching services. 

For workers and job seekers, this is intended to provide more seamless support from career planning to skills acquisition and employment transitions. For employers, support will cover workforce planning, job redesign, hiring and workforce development in a more integrated way.

Further details will be shared by the Minister for Education and the Minister for Manpower at the upcoming Committee of Supply.

The government is also strengthening support for mid-career workers. In 2024, it launched the SkillsFuture Level-Up Programme to help workers reskill. 

More than 60,000 Singaporeans aged 40 and above have taken up substantial training courses under the programme.

One beneficiary, Jeffrey Loh, enrolled in a digital product management course at the Singapore Institute of Technology after 18 years as an air steward. Most of his course fees were covered by SkillsFuture subsidies and credits. 

He also received a mid-career training allowance during the three-month course to help with daily expenses. He has since taken on a new role as a Duty Terminal Manager with Changi Airport Group.

From next month, the mid-career training allowance will be extended to those taking part-time courses, in addition to full-time training. 

Coverage will also be expanded to include more industry-relevant programmes.