Budget 2025: Increased subsidies for adult disability services, expanded Matched Retirement Savings Scheme for persons with disabilities

THE government will increase subsidy rates for adult disability services, among measures to provide more financial support for persons with disabilities, said Finance Minister Lawrence Wong on Tuesday (Feb 18).

The maximum qualifying per-capita household income for these subsidies will also be raised, he said in his Budget speech delivered in Parliament.

In addition, from Jan 1, 2026, the Matched Retirement Savings scheme will also be expanded to include eligible Singaporeans with disabilities, regardless of their age.

The scheme – currently available to eligible seniors aged 55 and above – aims to help these seniors with lower retirement savings by providing a dollar-for-dollar matching grant for cash top-ups made to their Central Provident Fund (CPF) Retirement Account (RA).

To be eligible, a person’s CPF savings have to be below the current basic retirement sum; he or she must have an average monthly income of not more than S$4,000; and he or she must not own more than one property. The person’s annual value of residence must also not exceed S$21,000.

With the scheme’s expansion, eligible persons with disabilities below the age of 55 will receive the matching grant on cash top-ups to their CPF Special Account. Eligible persons with disabilities aged 55 and above will receive the top-up in their RAs.

The government will also step up efforts by SG Enable and the Special Needs Trust Company (SNTC) to encourage families planning ahead, said Wong, who is also the prime minister.

Currently, caregivers of persons with disabilities can set up financial care plans and set aside monies in trust accounts with SNTC, which manages trust monies for persons with disabilities when they pass on.

The government will provide dollar-for-dollar matching grants for top-ups by lower and middle-income caregivers to the trust accounts, up to S$10,000, Wong said.

SEE ALSO

Singapore’s real median household income growth in 2024 eases to 1.4%

Meanwhile, the government will extend the Enabling Employment Credit, which provides wage offsets for persons with disabilities, to end-2028, said Wong.

The scheme provides wage offsets to employers hiring local employees with disabilities aged 13 and above earning below S$4,000 a month.

For more Budget stories, visit businesstimes.com.sg/singapore-budget-2025