Merdeka Generation And Its Major Benefits Explained - How Does It Affect You?

Merdeka Generation And Its Major Benefits Explained – How Does It Affect You?

2 min read

You might be wondering, “how does the Merdeka Generation apply to me when I’m not even near that age range?”

It’s true that it doesn’t but it might involve your parents.

  • With the help of the Merdeka package, it would reduce the financial burden on you if you are supporting your parents
  • Observe how Singapore eases the burden of medical expenses for its citizens
  • Witness how policies are made to get people to participate in new schemes

merdeka generation

For this year’s budget, S$6.1 billion would be set aside for the Merdeka Generation Package, most of it will go towards easing the burden of healthcare costs and medical expenses.

According to Finance Minister Heng Swee Keat, he claims that the Merdeka package will cost more than $8 billion but given the time horizon (with interest accumulated over time), it will be able to cover the full projected costs.

As Prime Minister Lee Hsien Loong said at the National Day Rally 2018,

“I think we owe something to them.”

Them – referring to the Merdeka Generation.


Some questions this article will answer!

(Click on the links to be teleported!)

If you would like a quick recap on what went on during the Budget 2019’s speech,

What is in the Merdeka Generation Package?

What is in the Merdeka Generation Package?

  1. $100 top-up to PAssion Silver Card
  2. Annual Medisave top-up of $200 per year
  3. Subsidies for outpatient care
  4. Medishield Life premium subsidies
  5. Incentive to join CareShield Life of $1,500

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How does it compare to the Pioneer Generation?
(Merdeka vs Pioneer Generation Package)

Merdeka was given a lower budget of S$6.1 billion as compared to the Pioneer Generation.

Merdeka GenerationPioneer Generation
$1,000 MediSave Top-ups
($200 top-up every year for 5 years)
MediSave top-ups annually for life,
which range from $200-$800 depending on birth cohort. (More for older cohorts)
5 to 10% off their MediShield Life premiums40% - 60% off MediShield Life premiums
Special subsidies under CHAS (vs Blue and Orange cardholders) regardless of incomeSubsidies for GP and dental clinics under CHAS
$1,500 incentive to join CareShield LifeAll Pioneers will pay less premiums for MediShield Life ​than MediShield.
$100 top-up to Passion Silver Cards to be used for public transport, entry to public swimming pools, activities at Community Centres etc.
Extra 25% discount on their bills at polyclinics and Specialist Outpatient ClinicsAdditional 50% off subsidised services and medications at polyclinics and Specialist Outpatient Clinics
Cash of $1,200 a year for those with moderate to severe functional disabilities under the Pioneer Generation Disability Assistance Scheme.
$6.1 billion packageS$8 billion package
~500,000 Singaporeans~400,000 Singaporeans

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Merdeka Generation Package Major Benefits Explained

1. $100 top-up to PAssion Silver Card

This top-up can be used for a couple of things like:

  • Activities and facilities at community clubs
  • Entry to public swimming pools
  • Public transport

2. Annual Medisave top-up of $200 per year

This will run through for 5 years, which amounts to $1,000 of Medisave top-ups in total.

3. Additional Subsidies for outpatient care

  • Special rates at CHAS for GPs and dental clinics
  • Additional 25% off subsidies bills at polyclinics and public Specialist Outpatient Clinics

4. Additional Medishield Life premium subsidies

  • Additional 5% subsidy for annual premiums, increasing to 10% after age 75

5. Additional participation incentive of $1,500 for joining CareShield Life

The current incentives for people born before the 1960s to join CareShield Life within 2 years are $250 premium subsidy every year for 10 years ($2,500 total).

This would give them an additional incentive of $1,500 which brings it to a total of $4,000 if they join.

It has not been announced if the $1,500 incentive would be in a form of premium subsidy, MediSave top-up or in cash. We really doubt it would be in cash.

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Who is eligible for the Merdeka Generation Package?

Most likely your parents. The specifics are:

  • Born in 1950 to 1959 (ages 60 to 69), and became Singapore citizens by 1996
  • Born in or before 1949, and became Singapore citizens by 1996 and did not get the Pioneer Generation Package

People who are eligible will be notified by April and start getting their Merdeka Generation cards from June. More details will be shared during the debate on the Health Ministry’s spending plans.

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How does it help us who has parents from the Merdeka Gen?

If you...Benefits
Providing entirely for your parents
(E.g. Living expenses)
$100 of transportation fees relived
(Estimated to last at least 1 month)
Subsidised fees for visits to Polyclinics, GPs and Specialist Outpatient Clinics
Ensuring that they have adequate hospitalisation coverage• $200 MediSave top-up every year
• 5-10% off MediShield Life Premiums
E.g. For the lower and lower-middle income, this will pay off around 50% of their MediShield Life premiums

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