Press Releases

In his Budget Statement for Financial Year (FY) 2006, Prime Minister and Minister for Finance Lee Hsien Loong announced a $2.6 billion Progress Package which shares the budget surpluses with Singaporeans.

2 There are four payouts to individuals in the package. They are the Growth Dividends, the Workfare Bonus, the 40^th Anniversary National Service Bonus, and the CPF top-ups to the Special/Retirement and Medisave Accounts.

TO GET THE PROGRESS PACKAGE

3 Only Singapore Citizens qualify for the Progress Package: it is a privilege of citizenship. They must be 21 years or above to qualify for Growth Dividends, and 50 years or above to qualify for top-ups to CPF Special/Retirement and Medisave Accounts. The age is determined as of 31 December 2005. The 40^th Anniversary National Service Bonus will also be given based on NS status as of 31 December 2005.

4 Singaporeans will receive a letter from the CPF Board in late March 2006 telling them of their Progress Package entitlements. To get their Progress Package, they must sign up through any DBS/POSB/UOB/OCBC ATM, on the Progress Package website (www.progress.gov.sg) or by using a form which they can get from any SingPost office, Community Centre/Club, Community Development Council or CPF Service Centre. This can be done from 1 April 2006. Singaporeans can get their Progress Package from 1 May 2006 if they sign up at an ATM or on the website by 25 April 2006, or if the CPF Board receives their form by 15 April 2006.

TO GET THE WORKFARE BONUS

5 In the case of employees, income will be checked from their CPF contribution records. This is because under the CPF Act, employers must make CPF contributions on behalf of their employees if they earn more than $50 monthly. No application or declaration of income is necessary for employees to get the Workfare Bonus.

6 The self-employed will be assessed based on their income tax declaration to IRAS. They should receive their income tax form by 1 March 2006. If they submit their income tax forms by 1 April 2006, they will get their Workfare Bonus on 1 May 06. Late submissions will result in delayed payment of the bonus. No additional action is necessary for this group.

7 Those who work but do not have CPF contributions and have not received an Income Tax Form by 1 March 2006 can apply for the Bonus by declaring their income using the Workfare Bonus Income Declaration Form. They should submit the form by 1 April 2006 if they want to get their Workfare Bonus on 1 May 2006. Late submissions will result in delayed payment of the bonus. The form will be available at Community Centres/Clubs, Community Development Councils and CPF Service Centres from 21 February 2006.

PUBLIC ENQUIRIES

8 For more information, please visit the Progress Package website at www.progress.gov.sg or call the CPF Board at 1800-2222-888.

MINISTRY OF FINANCE
MINISTRY OF MANPOWER
20 FEBRUARY 2006

ANNEX A: HOW MUCH AN INDIVIDUAL CAN RECEIVE UNDER EACH SCHEME OF THE PROGRESS PACKAGE (IF APPLICABLE)

Growth Dividends for All Adult Singaporeans
All adult Singaporeans will get Growth Dividends ranging from

Rebates to Help Lower-Income Households
Lower-income households will get Utilities-Save (U-Save) rebates ranging from $60 to $200. They will also continue to get rebates on up to 4 months of Service & Conservancy Charges

CPF Top-ups to Help the Elderly meet Retirement and Healthcare Needs
Singaporeans aged 50 and above will get CPF top-ups ranging from $100 to $800 depending on the Annual Value of their homes.

Half of the amount will go

MINISTRY OF FINANCE AND MINISTRY OF MANPOWER