A $7 billion Mujulah Package was first introduced during the National Day Rally 2023. It was meant to benefit about 1.4 million older Singaporeans, including “young seniors” who were born in 1973 or earlier, especially those born in 1960 to 1973.
Following Budget 2024, additional support under the Mujulah Package was announced to benefit about 1.6 million Singaporeans, with those born in 1973 or earlier expected to receive at least one component of the Mujulah Package.
In total, the Mujulah Package is expected to have a lifetime cost of $8.2 billion, with the government setting aside $7.5 billion in a new fund – the Mujulah Package Fund – to cover the lifetime cost of the Package.
More Details About The Majulah Package
The Ministry of Manpower (MOM) said that the package benefits are means-tested to ensure that support goes to those who need it the most.
The minimum amount of bonus for those eligible for the Earn and Save Bonus (ESB), Retirement Savings Bonus and MediSave Bonus are $400, $1,000 and $500 respectively, said MOM.
The eligibility criteria for the various benefits will include factors such as income, annual value of residence, whether an individual owns more than one property, and level of CPF savings.
Majulah Package: Earn And Save Bonus
The first component of the package is the Earn and Save Bonus, which will provide an annual bonus for lower- to middle-income workers to build up their CPF savings while they work.
Lower- and middle-income workers will be given a CPF bonus of between $400 and $1,000 yearly. This bonus will be credited to the recipient’s CPF Retirement Account (RA) or Special Account (SA), if the RA has not been created, on top of the usual employer and employee contributions. The first annual ESB will be credited in March 2025.
Eligible individuals will receive this bonus yearly as long as they are working, whether it is part-time or full-time work. Furthermore, they must meet the following criteria to be eligible for the ESB:
- Work and have an average monthly income of between $500 and $6,000;
- Live in a residence with Annual Value (AV) of $25,000 and below; and
- Own not more than one property.
For Singaporeans born in 1973 or earlier who meet the above criteria, they can expect to receive the following annual bonus, which is tiered according to the monthly income earned.
Source: MOF
For example, a 55-year-old who earns $2,000 and plans to retire at 65, will benefit up to $12,000 in extra CPF savings, including interest.
Those in the Pioneer Generation and Merdeka Generation will receive the Earn and Save Bonus if they are still working and meet the income criteria. Those who are not working can still get something from the Retirement Savings Bonus and MediSave Bonus.
The people who are grouped as the Merdeka Generation are those who were born between 1950 and 1959. For the Pioneer Generation, these are people who were born in 1949 or earlier.
Majulah Package: Retirement Savings Bonus
A one-time bonus in retirement savings will be given to those who have yet to save up to the Basic Retirement Sum (BRS) of $99,400 as at 31 December 2022, including those who are unable to work. This means that those who are not working, including homemakers who have given up their careers for their families, will also receive this bonus.
Additionally, they should also be living in a residence with Annual Value (AV) of $25,000 and below and owning not more than one property.
Should they satisfy all these criteria, they will receive a one-time CPF bonus of $1,500 if they have less than $60,000 in their CPF retirement savings. For those with at least $60,000 but less than the BRS of $99,400 (2023 BRS), they will receive $1,000 in RSS credited to their RA or SA if the RA has not been created.
The CPF BRS will continue to increase by 3.5% year-on-year, until 2027. This means that for those turning 55 in 2027, the CPF BRS will be $114,100. The BRS is the minimum amount a CPF member must set aside at age 55 for retirement needs.
Majulah Package: Medisave Bonus
As announced in Budget 2024, there will also be a one-time bonus in healthcare savings for all Singapore citizens born in 1973 or earlier. This will be in the form of a MediSave Bonus (MSB) comprising a one-time top-up of between $750 and $1,500.
Source: MOF
The MSB was meant to give Singaporeans some extra buffer to help pay for medical expenses and insurance premiums.
Read Also: Singapore Budget 2024: 24 Things That Will Impact Singaporeans Financially
This article was first published on 22 August 2023 and updated to reflect the latest information.
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