Maximizing Government Benefits for Raising a Child in Singapore

Babyment

Raising a child is a joyful journey, but it comes with its financial demands. Thankfully, Singapore offers an extensive range of government schemes and benefits to support parents in managing these costs. Whether you’re a first-time parent or expanding your family, here’s how you can make the most of the support available in Singapore.

1. Understanding the Baby Bonus Scheme

Cash Gift

Parents receive a cash gift to help offset immediate costs such as diapers, formula, and baby essentials. The amount varies based on the child’s birth order:

• $11,000 for the first and second child
• $13,000 for the third and subsequent children

The cash is disbursed in instalments, starting within weeks of the child’s birth and continuing over the next 18 months.

Child Development Account (CDA)

The CDA (Child Development Account) is a dedicated savings account for your child, featuring the First Step Grant and government co-matching of parents' contributions. The First Step Grant provides $5,000, while the maximum government co-matching ranges from $4,000 to $15,000, depending on your child's birth order.

Funds can be used for approved expenses like preschool fees, medical costs, and enrichment programs.

2. Childcare and Infant Care Subsidies

Basic Subsidy

• Up to $300 per month for childcare
• Up to $600 per month for infant care

Eligibility requires the mother to be employed for at least 56 hours per month.*

*From 9 Dec 2024, families with a gross monthly household income of $6,000 and below or a per capita income of $1,500 and below will qualify for the full childcare subsidies for their income tier, regardless of the main subsidy applicant's working status.

Additional Subsidy

Low- to middle-income families may qualify for further subsidies, which are income-dependent. For instance:

• Families with a gross monthly income of $3,000 or less can receive up to $710 additional subsidy for infant care or up to $467 for childcare.

3. Tax Reliefs for Parents

• Working Mother’s Child Relief (WMCR): A percentage of your earned income is deducted, ranging from 15% for the first child to 25% for the third and subsequent children.
• Qualifying Child Relief (QCR): Claim $4,000 per child annually.
• Grandparent Caregiver Relief (GCR): Claim up to $3,000 if your child is cared for by a grandparent.
• Parenthood Tax Rebate (PTR): Receive up to $20,000 for your first child, increasing with each additional child.

4. Parental Leave Entitlements

Maternity Leave

Mothers are entitled to 16 weeks of paid maternity leave if they meet eligibility requirements. You can refer to Maternity leave eligibility and entitlement for details.

Paternity Leave

Fathers are entitled to 2 weeks of paid paternity leave. Shared parental leave is also available. You can refer to Paternity leave for more details

Childcare Leave

Both parents are entitled to 6 days of childcare leave per year for children under 7 years old.

5. MediSave and Healthcare Support

Singapore’s healthcare system provides robust support for parents through MediSave and related schemes:

MediSave Maternity Package

Use your MediSave to pay for delivery expenses and pre-delivery medical bills, such as consultations and ultrasounds. Withdrawal limits include:

1. Up to $900 for pre-delivery expenses
2. Up to $4,050 for delivery procedures and hospitalisation

MediShield Life for Newborns

Newborns are automatically covered under MediShield Life, Singapore’s universal healthcare insurance. This provides lifelong coverage for large hospital bills and certain costly outpatient treatments.

Enhanced Subsidies for Medical Expenses

Families with lower incomes can benefit from additional subsidies at public healthcare institutions, including specialized care for children.

6. Preparing for Preschool

Preschool education is heavily supported by the government through subsidies for MOE Kindergartens and Anchor Operators like NTUC First Campus.

SkillsFuture Credits

Parents can also use their SkillsFuture Credits to enroll in parenting workshops or courses on early childhood education, empowering you to be actively involved in your child’s development.

7. Parenthood Incentives for Housing

• Enhanced CPF Housing Grant: Receive up to $80,000.
• Proximity Housing Grant: Receive up to $30,000 for living near family.

Raising a child in Singapore can feel overwhelming, but the government’s extensive support system makes it manageable. By understanding and maximizing these benefits, you can focus on what truly matters: enjoying this precious journey with your little one.