SingaporeMotherhood | Baby & Toddler
February 2023
Budget 2023: Bigger Baby Bonus + More Benefits and Subsidies for Parents
During his Singapore Budget 2023 speech two days ago, Deputy Prime Minister and Finance Minister Lawrence Wong announced a slew of new and added measures to boost support for Singaporeans embarking on their parenthood journey. These range from a bigger Baby Bonus to more paternity leave, on top of other grants, subsidies, and tax reliefs. The Government will be spending an additional $240 million per birth cohort to help parents defray child-raising costs. Here’s what to expect:
Baby Support Grant (BSG) *Extended*
$3,000 per child
The Government has extended the $3,000 BSG to Singapore citizen babies born between 1 October 2022 and 13 February 2023. Yes, that’s $6,000 for twins, $9,000 for triplets, and so on. It was originally a one-off benefit to support parents giving birth from 1 October 2020 to 30 September 2022 a.k.a. during the COVID-19 pandemic.
If your baby is already enrolled into the Baby Bonus Scheme, you don’t have to do anything else. If you gave birth during the stipulated period, the BSG will be deposited into the same bank account you nominated in the second half of 2023.
Baby Bonus Cash Gift (BBCG) *Enhanced*
1st & 2nd child: $11,000 | 3rd child & beyond: $13,000
All Singapore citizen children get a cash gift — the famed Baby Bonus — from the government. From 14 February 2023, Singaporean babies get $3,000 more than before. The first and second child each receives $11,000, while the third and subsequent child each gets $13,000.
And instead of five instalments over the first 18 months of baby’s life, the payouts will happen until the child turns 6½ years old. The enhanced payouts begin from early 2024.
| When | Amount disbursed (1st & 2nd child) | Amount disbursed (3rd child & beyond) |
|---|---|---|
| At birth | $3,000 | $4,000 |
| 6 months | $1,500 | $2,000 |
| 12 months | $1,500 | $2,000 |
| 18 months | $1,000 | $1,000 |
| 2 years to 6½ years | $400 every six months | $400 every six months |
| Total | $11,000 | $13,000 |
Baby Bonus Child Development Account (CDA) *Enhanced*
1st child: up to $6,000 | 2nd child: up to $9,000 | 3rd & 4th child: up to $12,000 | 5th child & beyond: up to $18,000
The Baby Bonus Child Development Account is a special savings account to help parents offset selected medical and education-related expenses. Simply open a CDA for your child at any of the four big banks (DBS/POSB/OCBC/UOB). The initial CDA First Step grant will be deposited into it. Babies born from 14 February 2023 will receive $5,000, an increase of $2,000.
Afterwards, parents who continue to save into the CDA will be matched dollar-for-dollar by the government. This is capped at amounts shown in the following table. (From 14 February 2023, the maximum co-matching amount will increase by $1,000 for your first and second child.)
| Birth order | CDA First Step | Maximum co-matching | Total maximum disbursed |
|---|---|---|---|
| 1st child | $5,000 (was $3,000) | $4,000 (was $3,000) | $9,000 |
| 2nd child | $5,000 (was $3,000) | $7,000 (was $6,000) | $12,000 |
| 3rd & 4th child | $5,000 (was $3,000) | $9,000 | $14,000 |
| 5th child & beyond | $5,000 (was $3,000) | $15,000 | $20,000 |
Government-paid Paternity Leave (GPPL) & Unpaid Infant Care Leave (UICL) *Doubled*
GPPL: up to 4 weeks per child | UICL: up to 24 days per parent
Working fathers with Singaporean children can currently take up to two weeks of GPPL. But from 1 January 2024, you could have twice as much paternity leave to spend with bub. To help employers adjust, the extra two weeks will be given on a voluntary basis initially. This means that employers who grant the additional leave will be reimbursed by the Government. It will become mandatory in due course.
In addition, each parent of Singaporean children under two years from 1 January 2024 can take an additional six days per year of UICL. In total, each parent will have 12 days of UICL per year over baby’s first two years.
(See also: First 1,000 Days of a Child’s Life – Fathers, It’s Your Time to Step Up)
Working Mother’s Child Relief (WMCR) *Adjusted*
1st child: $8,000 | 2nd child: $10,000 | 3rd child & beyond: $12,000
To encourage more women to stay in the workforce after having kids, working mums can claim WMCR. Currently this tax relief is pegged as 15–25% of the mother’s earned income. For working mums of Singaporean children born (or adopted) from 1 January 2024, the WMCR will be a fixed amount.
Eligible working mothers will be able to claim $8,000 in tax relief for the first child, $10,000 for the second child, and $12,000 each for the third child and beyond. This takes effect from the Year of Assessment (YA) 2025.
At the same time, the FDW levy tax relief will cease (YA 2025). It was originally introduced in 1989 to support working mums who needed to hire a domestic helper. However, the Migrant Domestic Worker Levy Concession is a more progressive way of supporting families who need it, as it includes those who do not pay income tax. Households with children under 16 years, an elderly who is at least 67 years, or a person with disabilities (PWD) pay a monthly concessionary levy of $60.
(See also: Income Tax Reliefs for Parents – Are You Maximising Your Tax Savings?)
MediSave Grant for Newborns
$4,000 per child
Every Singapore citizen child gets their very own CPF MediSave account at birth. A MediSave Grant of $4,000 is automatically credited into it. This helps parents defray healthcare expenses, including hospitalisation, selected outpatient treatments, and MediShield Life premiums.
(See also: MediSave for Pregnancy and TTC – Financial Aid for Making Babies (2021 Update))
MediShield Life Coverage from Birth
From birth, babies are automatically covered by MediShield Life, the mandatory basic health insurance for Singapore citizens. Coverage applies even for children born with congenital and neonatal conditions. MediShield Life premiums may be fully paid with funds in baby’s MediSave account, beginning with the MediSave Grant for Newborns.
Subsidies for Infant Care and Childcare
Infant care: up to $1,310 per month | Childcare: up to $767 per month
Parents who enrol their children in licensed childcare centres are eligible for a Basic Subsidy of up to $600 per month for full-day infant care and up to $300 for full-day childcare. If you are a working mother with a gross monthly household income of $12,000 and below, you are eligible for the Additional Subsidy, on top of the Basic Subsidy. Lower-income families will receive higher subsidies. Subsidies are also available for half-day and flexi-care programmes.
| Child placement | Mum’s work status | Gross monthly household income | Basic Subsidy | Additional Subsidy | Maximum total subsidy |
|---|---|---|---|---|---|
| Infant Care (2-18mth) | Working | Up to $12k | $600 | Up to $710 | $1,310 |
| Working | Above $12k | $600 | NA | $600 | |
| Not working | – | $150 | NA | $150 | |
| Childcare (18mth-7yr) | Working | Up to $12k | $300 | Up to $467 | $767 |
| Working | Above $12k | $300 | NA | $400 | |
| Not working | – | $150 | NA | $150 |
(See also: Infant Care in Singapore: How to Choose the Right one for your Baby)
Kindergarten Fee Assistance Scheme (KiFAS)
Up to $161 per month
Children from lower-income households who are enrolled in an Anchor Operator preschool or MOE kindergarten are further eligible for KiFAS. Families with a gross monthly household income of up to $12,000 or gross monthly per capita income of up to $3,000 qualify.
(See also: 12 Types of Preschools in Singapore: The Ultimate Guide)
Free Childhood Vaccinations and Developmental Screening
The National Childhood Immunisation Schedule lists mandatory and recommended vaccinations for children in Singapore. Developmental screenings help to detect any developmental delays in children early on, allowing for timely intervention. These are available for free at all polyclinics and CHAS GP (Community Health Assist Scheme General Practitioner) clinics.
(See also: Singapore Vaccinations 101: What’s Compulsory and Optional for Your Kids)
Waiver of Passport Application Fee for Newborns
Since 1 January 2020, parents enjoy a waiver of the application fee on baby’s first passport. This may not have mattered much in the last few years, but now that the travel industry is starting to take off again… Remember to apply before their first birthday!
For more details and the latest updates on the support measures for marriage and parenthood, visit madeforfamilies.gov.sg.
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