SINGAPORE: More financial support for parents and longer paid paternity leave were among the measures announced on Tuesday (Feb 14) to support families in Singapore.
In his Budget 2023 speech, Deputy Prime Minister Lawrence Wong said that the Government already has “a generous set of measures” to help parents with the costs of raising children, but some schemes needed adjustments to support those with greater needs.
“To all young married couples, whether you already have a newborn, or you are expecting a baby, or you plan to have a baby, we have something to help you in your parenthood journey,” he said.
The changes will cost the Government S$240 million per cohort of children.
“I hope this will provide greater assurance to parents and parents-to-be as they think about starting and raising their families,” Mr Wong added.
Here are seven key announcements for parents from Budget 2023:
BABY BONUS INCREASED BY S$3,000
The Baby Bonus Cash Gift will be increased by S$3,000 for all eligible Singaporean children born from Tuesday.
Parents will receive S$11,000 for their first and second children, up from S$8,000. For their third and subsequent children, the bonus will now be S$13,000, up from S$10,000 previously.
The schedule of payments will also be adjusted to last until the child turns six-and-a-half years old. Parents will receive up to S$9,000 over the first 18 months of their child’s life, followed by S$400 every six months.
Children who are Singapore citizens and whose parents are lawfully married are eligible for the Baby Bonus cash Gift.
The increased bonus will be paid out from early 2024, to allow sufficient time for the required legislative and system changes, said Mr Wong.
“Eligible Singaporean children who are born on or after Feb 14, 2023, will continue to enjoy the current Baby Bonus Cash Gift benefits until the date the changes are implemented,” said the Ministry of Finance.
BABY SUPPORT GRANT EXTENDED
The Baby Support Grant, a one-off cash payout of S$3,000 that was introduced during the COVID-19 pandemic, will be extended.
It was initially given to children born between Oct 1, 2020, and Sep 30, 2022.
The grant has now been extended to parents of babies born from Oct 1, 2022, to Feb 13 this year.
CONTRIBUTIONS TO CHILD DEVELOPMENT ACCOUNT
The Government will increase contributions to the Child Development Account (CDA) in two ways.
First – the CDA First Step Grant for all eligible Singaporean children born from Feb 14 will be increased from S$3,000 to S$5,000.
The Government will also match parents’ contributions to the CDA up to a higher limit than before for first- and second-born children.
Parents’ contributions will be matched dollar-for-dollar up to S$4,000 for the first child and up to S$7,000 for the second child, an increase of S$1,000.
The amounts remain unchanged for subsequent children, according to the National Population and Talent Division (NPTD) in a media release.
Funds in the CDA can be used for pre-school and healthcare fees.
While children born from Feb 14 are eligible for the larger contributions, the move will only be implemented from early 2024. Parents will be informed about when they can make additional deposits that the government will match.