SkillsFuture Level-Up Programme: Empowering Mid-Career Singaporeans in a Changing Economy

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In this Explainer, find out...

What led to the creation of the SkillsFuture Level-Up Programme?
What are the support mechanisms within the SkillsFuture Level-Up Programme?
How might the SkillsFuture Level-Up Programme impact Singapore's economic competitiveness, and what implementation challenges might emerge?

Introduction

Under the Forward Singapore initiative, the Government has identified lifelong learning as a key part of Singapore’s future. One main initiative dedicated to lifelong learning is SkillsFuture, a national upskilling movement which aims to “enable individuals to learn for life, pursue skills mastery and develop fulfilling careers, for a future-ready Singapore”.

In Singapore’s Budget 2024, the Government introduced a new element to this initiative, the SkillsFuture Level-Up Programme (SFLP). This programme primarily targets Singaporeans aged 40 years old and above who face increased risk of skills obsolescence. It represents a comprehensive approach to mid-career development through financial support, educational opportunities, and allowances for substantive skills transformation.

Background Information

Economic and Technological Trends

To many, the world is currently experiencing rapid technological advancements and global economic shifts. Innovations in artificial intelligence, automation, and other technologies are reshaping industries. Meanwhile, the rise of protectionist policies looks likely to create a volatile environment for international trade. Singapore, as a small city state deeply connected to the global economy, must adapt to these changes.

To do so, Singapore needs a resilient workforce that can quickly acclimatise to these new technologies and economic developments. In particular, mid-career workers aged 40 and above, who entered the job market in a vastly different era, are at a higher risk of skills mismatches. Hence, they are more likely to require upskilling.

Historical Context and Conception of the SFLP

SkillsFuture was established in 2015 to promote lifelong learning and upskilling amongst Singaporeans. The initial SkillsFuture programme included a broad range of measures, including but not limited to the following:

Giving eligible Singaporeans aged 25 and above S$500 in credit to spend on an array of courses, such as IT and aerospace;
Enhancing career counselling services and internship offerings in schools and Institutes of Higher Learning;
The SkillsFuture Earn and Learn programme, which matches fresh graduates from Polytechnics and ITE with suitable employers; and
Enhancing subsidies for mid-career Singaporeans.

The Government has continually expanded the programme ever since. For example, the Government gave citizens aged 25 and older a one-off S$500 top-up in 2020, and doubled the number of SkillsFuture Career Transition Programme courses from 82 in 2022 to 180 in 2023.

The SFLP evolves and adds on to existing SkillsFuture initiatives. It is primarily aimed to be a response to pressures that workers face due to transformations in the economy and technological disruption. According to the Ministry of Education (MOE), which the SkillsFuture Singapore (SSG) statutory board is under, the SFLP is a “significant commitment by the Government to make SkillsFuture as a key pillar of our social compact”.

Components Of The SFLP

The policy comprises three main components:

SkillsFuture Credit (Mid-Career) Top-up;
Enhanced Access to Full-time Diplomas; and
SkillsFuture Mid-Career Training Allowance.

A. SkillsFuture Credit (Mid-Career) Top-up

The Government is providing a S$4,000 SkillsFuture Credit top-up for mid-career workers aged 40 and above. These Credits can be used at a curated list of over 7,000 courses which have better employability outcomes. The courses include:

Institutions of Higher Learning courses;
Courses that satisfy requirements under Progressive Wage Model sectors; and
SkillsFuture Career Transition Programmes. Such programmes are existing SSG programmes to train-and-place workers in sectors with high employability outcomes.

B. Enhanced Access to Full-time Diplomas

The Mid-Career Enhanced Subsidy (MCES), for Singaporeans aged 40 and above, subsidises up to 90 per cent of fees for SkillsFuture-funded courses, and at least 90 per cent of MOE-funded courses. The SFLP extends the reach of the MCES by allowing Singaporeans to receive subsidies for another publicly-funded full-time diploma, and still qualify for the MCES.

C. SkillsFuture Mid-Career Training Allowance

There will be a monthly training allowance provided for Singaporeans who enrol in eligible long-form courses.

For full-time courses, the Mid-Career Training Allowance provides 50 per cent of average monthly income in the latest 12 months before the course start date. It provides a minimum amount of S$300 and maximum amount of S$3,000 monthly. This allowance has been distributed since 1 April 2025.

For part-time courses, the training allowance will provide a flat rate of S$300 monthly for incidental training expenses. This allowance will apply from early 2026 onwards.

The allowance has a 24-month lifetime cap, regardless of the training type.

Progressive Implementation

The programme has been progressively implemented throughout 2024 and 2025. First in May 2024, the S$4,000 SkillsFuture Credit (Mid-Career) top-up was provided. Next, from the start of academic year 2025, Singaporeans aged 40 and above were qualified for the Mid-Career Enhanced Subsidy at other full-time diploma programmes. Further, from 10 March 2025, Singaporeans became eligible to apply for the SkillsFuture Mid-Career Training Allowance for full-time training. From early 2026 onwards, this training allowance will be extended to eligible part-time training.

The programme has seen significant early results. As of 31 December 2024, more than 28,000 individuals have used their SkillsFuture Credit top-up.

Policy Evaluation

Potential Benefits

At the individual level, income security during career transitions is significantly increased due to the Training Allowance which offers vital financial support—covering up to 50 per cent of previous income. This reduces the financial risk that often deters professionals from pursuing retraining, especially those with family responsibilities. Recognising the real economic barriers that individuals face, the scheme also provides substantial subsidies and credit top-ups to ease out-of-pocket expenses. With a S$4,000 SkillsFuture Credit (Mid-Career) and course fee subsidies of up to 90 per cent, individuals now have better access to quality education and reskilling opportunities, empowering them to navigate career changes with greater confidence and stability.

At the industry level, the initiative contributes to a more adaptable and future-ready workforce. Employers benefit from a growing pool of experienced workers who bring both practical know-how and newly acquired skills. This blend of workplace experience and contemporary technical knowledge creates a strong talent pool for emerging sectors that often face shortages of qualified personnel. New industries, in particular, can tap into reskilled professionals who also bring valuable soft skills and adaptability. Notably, a 2018 MTI study found that individuals who underwent Workforce Skills Qualification (WSQ) training were more employable and enjoyed a real wage premium of 5.8 per cent in the year after training.

At the national level, skills transformation plays a key role in enhancing Singapore’s economic competitiveness. A workforce that is continuously upskilled supports the country’s broader economic transformation, ensuring it remains agile and resilient in a fast-changing global landscape. This adaptability is crucial for a small, export-oriented economy like Singapore’s, where staying ahead depends on the ability to pivot quickly and effectively. By extending the productive careers of older workers, the nation also tackles the challenges of an aging population, turning potential strain into strength. Importantly, investing in the upskilling of existing workers—rather than training from scratch—leads to a more efficient use of national resources, making the most of the talent and experience already present in the workforce.

Potential Challenges

Training providers (TPs) in the Technical and Adult Education (TAE) sector face a multifaceted landscape of challenges as they adapt to serve growing numbers of mid-career learners. Survey data reveals that business challenges, including market competition and government regulations, represent the most prevalent concern (66.1 per cent of providers), followed by operational challenges related to resource allocation and service delivery (57.1 per cent), and staffing challenges, particularly the recruitment of qualified trainers (39.5 per cent). The interconnected nature of these challenges is evident, with over 70 per cent of providers reporting multiple concurrent issues.

Despite significant government support, including financial incentives like the SkillsFuture Credit, many Singaporeans remain hesitant to engage in lifelong learning. As of 2022, only about 192,000 individuals used their SkillsFuture Credit, indicating that a substantial portion of eligible citizens have yet to tap into these resources. This underutilisation is not solely due to financial constraints. Cultural factors that prioritise job stability over career reinvention contribute to resistance against retraining. Additionally, the prospect of returning to formal education after a prolonged absence can be daunting, and balancing training with existing work and family responsibilities presents significant time management challenges. While initiatives like SkillsFuture Advice workshops aim to bridge awareness gaps, shifting ingrained attitudes towards continuous learning requires sustained and multifaceted efforts.

Conclusion

Singapore's SkillsFuture Level-Up Programme represents a vital investment in the nation's workforce, helping mid-career professionals navigate economic changes by removing common barriers to career transitions. By offering financial support, educational access, and income stability during retraining, the programme allows experienced workers to move into emerging sectors while preserving their valuable institutional knowledge and soft skills.

The success of this initiative depends not just on government implementation but also on employers recognising the value these newly-skilled professionals bring to their organisations. At its core, this approach acknowledges a simple truth: Singapore's economic strength ultimately comes from empowering its people to adapt and thrive as the world changes around them.

This Policy Explainer was written by members of MAJU. MAJU is a ground-up, fully youth-led organisation dedicated to empowering Singaporean youths in policy discourse and co-creation.

By promoting constructive dialogue and serving as a bridge between youths and the Government, we hope to drive the keMAJUan (progress!) of Singapore.

The citations to our Policy Explainers can be found in the PDF appended to this webpage.