Eligible Singaporeans will receive S$400 to S$1,000 in relief payments starting March 2025 as part of the Majulah Package, a government initiative aimed at supporting lower- and middle-income seniors. The scheme, known as the Earn and Save Bonus, will provide the relief through Central Provident Fund (CPF) top-ups rather than direct cash payouts.
This initiative is part of a broader national strategy to help older workers build stronger retirement savings amid rising living costs.
$400 Relief Payments
| Key Fact | Detail/Statistic |
|---|---|
| Payout amount | S$400 to S$1,000 Earn and Save Bonus |
| Disbursement period | March 2025 (automatic payout) |
| Eligibility age | Born in or before 1973 |
| Income requirement | S$500–S$6,000 monthly |
| Property requirement | One property or less; AV ≤ S$31,000 |
| Official Website | Gov.sg |
What the $400 Relief Payment Covers
The $400 relief payment refers to the minimum CPF top-up amount under the Earn and Save Bonus component of the Majulah Package. It is aimed at Singaporeans who continue to work in their senior years, particularly those in the lower- and middle-income brackets.
“The Earn and Save Bonus provides meaningful support to seniors who continue to contribute to the workforce,” said Tan See Leng, Minister for Manpower, during the official announcement on 20 March 2025.
A Brief Policy Background: From Vouchers to CPF Top-Ups
Singapore’s approach to social assistance has evolved significantly over the past two decades. Earlier schemes such as GST Vouchers (introduced in 2012) focused on short-term cost-of-living support. Later programmes like Silver Support targeted low-income seniors.
The Majulah Package marks a strategic shift — prioritising retirement adequacy over immediate cash relief. By crediting the bonus into CPF accounts, the government encourages long-term financial resilience while preserving fiscal prudence.
“Singapore has historically favoured structured savings over lump-sum cash handouts,” said Dr. Gillian Koh, Deputy Director of Research at the Institute of Policy Studies. “This reflects a balance between providing help today and safeguarding future sustainability.”
Who Qualifies for the Earn and Save Bonus
Eligibility is determined by several factors:
- Age: Born in 1973 or earlier.
- Income: Average monthly income between S$500 and S$6,000.
- Housing: Property Annual Value (AV) of S$31,000 or below.
- Property ownership: Limited to one property.
No application is required. Authorities will use CPF contribution records and tax data to determine eligibility automatically.
How and When the Payments Will Be Disbursed
Payouts will begin in March 2025. Recipients with updated mobile numbers in Singpass will receive notifications via SMS. Others will get physical letters.
Funds will be credited directly to CPF Retirement Account (RA) or Special Account (SA). Around 1.4 million Singaporeans are expected to benefit, according to the Ministry of Finance.
Why the Payment Is Not Cash
The government has clarified that the S$400 relief payment will not be disbursed as cash. Instead, it will boost retirement savings, which earn interest and can be withdrawn at retirement age.
“CPF top-ups provide sustainable support by strengthening long-term retirement security,” said Ng Wai Leng, Senior Research Fellow at IPS. “It reflects Singapore’s long-standing preference for structured, targeted aid.”
This approach also helps shield payouts from inflationary pressures, unlike one-off cash transfers.
Voices from the Ground: What Beneficiaries Say
For many working seniors, the bonus offers reassurance, even if it’s not immediate cash in hand.
“It’s good for my future,” said Lim Siew Choo, a 58-year-old part-time cleaner. “But sometimes we also need money now for bills.”
Others see it as an incentive to keep working. “I feel more encouraged to stay employed because I know the CPF will grow,” said Mohamed Salleh, a 60-year-old security guard.
International Comparison: A Different Model
Unlike Hong Kong, which has issued direct cash handouts to residents in past years, Singapore focuses on building retirement reserves through CPF.
“In Singapore, the payout model prioritises saving over spending,” noted Dr. Kelvin Tan, economist at the National University of Singapore. “This is consistent with its broader economic policy to ensure self-reliance in old age.”
Countries like Japan and South Korea have also been exploring similar models amid ageing populations, but Singapore’s CPF system remains one of the most integrated and centralised retirement savings schemes globally.
Economic Rationale: Ageing and Fiscal Sustainability
Singapore’s population is ageing rapidly. By 2030, one in four citizens will be 65 or older, according to the Department of Statistics.
Providing recurring cash payments to such a large demographic would be fiscally challenging. “Targeted CPF top-ups are a cost-efficient way to support retirement security without overburdening future budgets,” explained Dr. Koh of IPS.
The Monetary Authority of Singapore (MAS) also highlighted that measures like these complement anti-inflation efforts, as they avoid triggering short-term spikes in consumer demand.
How to Check and Secure Your Payment
Here’s what eligible seniors should do to ensure a smooth payout:
- Log into Singpass to verify and update mobile contact details.
- Check CPF transaction history in March 2025.
- Contact CPF Board via official hotlines if payment is not reflected.
- File appeals if ineligible but believe you meet the criteria.
- Use govbenefits.gov.sg for updates.
For those without digital access, physical letters will provide instructions.
Future of the Scheme: What Comes Next
Officials have signalled that the Majulah Package could be adjusted in the future, depending on economic conditions. Options under discussion include indexing payout amounts to inflation and expanding eligibility to more middle-income workers.
Economists expect future budgets to maintain this “save now, spend later” orientation, with additional short-term assistance like CDC vouchers to address immediate needs.
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FAQ About Singapore $400 Relief Payment
Q1: Is the $400 relief a cash payout?
No. It is credited into CPF accounts.
Q2: Do I need to apply to receive the bonus?
No. Eligibility is automatic.
Q3: Can Permanent Residents or foreigners qualify?
No. The scheme is for Singapore citizens only.
Q4: Can I appeal if I don’t receive the bonus?
Yes. You may contact CPF Board to review your eligibility.
Q5: Will the payout be taxed?
No. CPF top-ups under this scheme are not taxable.
Q6: What if a recipient passes away before the payout?
The amount will be handled according to CPF nomination rules.
Q7: When will I receive the payout?
From March 2025 onwards.
