Are you worrying about providing for your child's needs? Worry no more parents, because, on Valentine's Day (February 14). More financial support and paternity leave were filed to help families in Singapore. Deputy Minister Lawrence Wong stated in his prior budget 2023 speech.
He said that the government has a "generous set of measures" in place to assist parents in raising their children. The schemes are adjusted to support those with greater needs.
In this article, you'll read:
- Budget 2023 takeaways for parents
- Budget 2023 guide
"To all young married couples, whether you have a newborn, expecting a baby, or plan to have a kid, we have something to help you in your parenting journey," said Deputy Prime Minister Lawrence Wong, who is also the Minister of Finance, in Parliament.
The baby bonus increased by $3,000
For all eligible Singaporean children born after Tuesday, the Baby Bonus Cash Gift raised by S$3,000.
The enhanced amount paid out starting in early 2024. Parents will receive up to $24,000 in financial support for their first child. and up to $37,000 for subsequent children.
The payment schedule will also be altered to last until the child is six and a half years old. Parents will get up to S$9,000 throughout their child's first 18 months of life, followed by S$400 every six months.
Children who are Singapore residents and have legally married parents are qualified for the Baby Bonus cash Gift.
The baby support grant is extended.
The Baby Support Grant, a one-time S$3,000 cash payout created during the COVID-19 pandemic is extended.
It was first given to children born between October 1, 2020, and September 30, 2022.
The grant has now been extended to parents of newborns born between October 1, 2022, and February 13, the current year.
Contribution to the child development account
In two methods, the government will raise contributions to the Child Development Account (CDA).
Furthermore, the CDA First Step Award increased from S$3,000 to S$5,000 for all qualified Singaporean babies born after February 14, 2014.
In addition, the government would match parents' CDA contributions up to a higher limit than previously for first- and second-born children.
Contributions from parents matched dollar for dollar up to S$4,000 for the first child and up to S$7,000 for the second child, a S$1,000 increase.
According to a press statement from the National Population and Talent Directorate (NPTD), the amounts remain unchanged for future children.
CDA funds can be used to pay for preschool and healthcare costs.
While children born on or after February 14 are eligible for higher payments, the change is not implemented until early 2024.
Parents are informed when they can make additional deposits that are matched by the government.
Paternity leave doubled by four weeks.
For eligible working fathers of Singaporean children born after January 1, 2024, government-paid paternity leave increased from two weeks to four weeks.
Working fathers of Singaporean children born after January 1, 2024, are eligible for four weeks of government-paid paternity leave. Up from two weeks before.
Employers are not currently required to provide the additional two weeks of vacation. But those who are reimbursed by the government. According to Mr. Wong, the policy will be mandatory in the future.
"We want paternal involvement to be the standard in our culture. And we will support all of our fathers who wish to take a more active role in raising our children," he added.
Increase unpaid infant care leave (UICL) by 6 days each year.
From January 1 next year, each parent will receive 12 days of unpaid baby care leave every year for the first two years of their child's life, up from six days.
All Singaporean parents who have worked for their employer for at least three months are entitled to this additional time off.
"This will offer parents more time to bond with and care for their newborn, or to finalize caregiving arrangements," Mr. Wong explained.
Changes to tax relief for working mothers
Working mothers who are eligible will be able to claim tax relief of S$8,000 for their first child, S$10,000 for their second child, and S$12,000 for their third and subsequent children. This will be effective for income received in 2024 in the 2025 Year of Assessment.
"This effectively provides extra Government help for eligible lower- to middle-income working mothers," Mr. Wong added.
The Working Mother's Child Relief will remain unchanged for Singaporean children born or adopted before January 1 of next year.
It will continue to be 15% of the mother's earning income for the first child. 20% for the second child, and 25% for the third and subsequent children.
The maximum amount of relief an eligible working mother can claim for all of her children is 100% of her earned income. According to NPTD, it is also subject to a total ceiling of S$50,000 per child.
Also read: How Can Homeowners Save On the Cost of Their New Home