Baby grants and subsidies in Singapore: a guide for parents

So to aid new parents, the government has introduced a number of grants that complement the baby bonus scheme in Singapore.

Below is a summary of everything you need to know about these subsidies. 

1. Baby Bonus Cash Gift

Did you know that your newborn is eligible for a cash gift if you apply for the cash gift under the baby bonus scheme in Singapore?

The amount given to parents depends on the birth order of their child. The first and second born are eligible for a bonus cash gift of up to $8,000 whereas $10,000 is awarded to the third born and subsequent children thereafter.

However, the cash gift will not be paid out in one lump sum. Instead, it is spread out over a period of 18 months from the birth of your baby as stipulated in the table below:

If you want your newborn to be eligible for this Cash Gift, you can apply for it on the Baby Bonus website.

One-stop participating hospitals include:

• Gleneagles Hospital
• KK Women’s and Children’s Hospital
• Mount Alvernia Hospital
• Mount Elizabeth Hospital
• National University Hospital
• Mount Elizabeth Novena Hospital
• Parkway East Hospital
• Raffles Hospital
• Singapore General Hospital
• Thomson Medical Centre

2. Child Development Account (CDA)

Another initiative by the government is the Child Development Account (CDA). It is part of the baby bonus scheme in Singapore set up to help parents with the finances of raising their child. This allows parents to pay for education and healthcare expenses from this list of pre-approved institutions.

All Singaporean babies will receive an initial $3,000 in their CDA. Whenever parents top up their child’s CDA, the government will match it dollar-for-dollar for the first and second child up to the amount of $3,000.

For the third and fourth child, this amount increases up to $9,000 and up to $15,000 for the fifth and subsequent child.

You can choose to set up this savings account with various banks participating in this scheme, namely OCBC, UOB and POSB.

It would be wise to choose a bank which you already have an existing bank account with because the CDA will be tied to your name. This way both accounts can share the same internet banking login for ease of monitoring. 

3. Medisave

On top of that, every newborn will receive a $4,000 Medisave Grant. This is the only baby bonus scheme in Singapore that gets automatically deposited into your child’s Medisave Account once the birth is registered.

Parents need not apply for it. Having this baby bonus scheme in Singapore means that all parents can use money from the grant to pay for insurance plans and premiums as well as any hospitalisation costs incurred. 

4. Tax Relief and Rebate

As another incentive to have more children, parents are eligible to claim for tax relief and tax rebate. Read below to find out what you are entitled to:

• Qualifying Child Relief (QCR): Tax relief of $4,000.
• Handicapped Child Relief (HCR): Tax relief of $7,500.

*Do note, you can only claim for either the QCR or the HCR.

• Working Mother’s Child Relief (WMCR): 15% of your earned income for your 1st child, 20% for the 2nd, and 25% per child for all subsequent children, with a maximum cap at 100% of your earned income.
• Parenthood Tax Rebate (PTR): A rebate given to parents based on the income tax that you are liable to pay. You and your spouse will share the PTR based on an apportionment agreed by both of you. Balance PTR will be carried forward to offset income tax payable for subsequent years until the rebate has been fully utilised.

5. Baby Bonus Scheme in Singapore Called the Good Start Bundle

NTUC Social Enterprise is also playing a part in helping new parents with their Good Start Bundle. Parents will receive an NTUC FairPrice “FairMily” kit worth $100.

This initiative by NTUC will end in December 2019.

The kit includes milk powder (for babies above six months old), grocery essentials, and an exclusive FairPrice Online deal. Parents can apply earlier for the kit but will only receive the redemption card when their baby is 6 months.

In addition to this, a complimentary one-year health insurance coverage, courtesy of NTUC Income will also be given. Other goodies include a book with essential tips for parents, Early Experiences Matter, by NTUC First Campus. 

With these amazing grants, aids and rebates as part of the baby bonus scheme in Singapore, the government hopes to encourage new couples to start building families and improve the fertility rate in the country.