Blog

Budget 2023: Bonanzas for a baby boom in

Singaporean couples planning to start a family soon have a lot to cheer about. Budget 2023 offers several benefits for parents-to-be by enhancing the Marriage and Parenthood (M&P) support measures that will help them manage their work and parental commitments.

While it has been a couple of months since the budget was announced, we think it is a good time to recap the key incentives and initiatives designed to encourage people to get on the family way.

Paternity Leave

Government Paid Paternity Leave (GPPL) has been increased from two weeks to four weeks on a voluntary basis. This will enable working fathers to spend more time with their new-borns (applicable to the parents of children born on or after 1 January 2024). Employers willing to grant this additional two weeks of leave will be reimbursed by the government. While this is voluntary for the employers, the government has an intention to make it mandatory in the future.

Unpaid Infant Care Leave (UICL)

Each parent can take an additional six days per year of unpaid leave for infant care in the child’s first two years. This enables each parent to get a total of 12 days of UICL per year for two years. This is valid for eligible parents of Singaporean children aged under 2 years from January 1 2024.

Enhanced Baby Bonus Scheme

This scheme helps parents manage the rising costs involved in raising a child. To increase the financial support in the child’s early development years, enhancements are made in Baby Bonus Cash Gift (BBCG) and Child Development Account (CDA). The scheme will be applicable for eligible Singaporean children born on or after 14 February 2023. The parents will be notified when the advanced amounts are disbursed in the year 2024.

Baby Bonus Cash Gift (BBCG)

BBCG has been increased by $3,000 for children in all birth orders¹. The payout schedule has been modified to provide ongoing financial assistance every six months until the child turns six and a half years old. In this manner, the parents can receive sustained support in the early years of their child’s life.

If your child meets the following criteria, he/she is eligible for the Baby Bonus Cash Gift:

1. He or she is a Singapore Citizen; and
2. You are lawfully married to your spouse.

Detailed information about the enhancements in BBCG  is available on the Baby Bonus website.

Child Development Account (CDA)

The Child Development Account (CDA) enables savings for Singaporean children and these savings can be spent on approved uses at Baby Bonus Approved Institutions. For eligible Singaporean children born on or after 14 February 2023, there will be an increase in CDA First Step Grant by $2000 for all birth orders. There will also be an increase in CDA co-matching cap by $1000 for children in the first and second birth orders.

By the way, parents should also know that the CDA can be used to pay for services like cord blood banking. See more details about Cryoviva Singapore’s cord blood storage pricing as well as payment options.

Extension of Baby Support Grant (BSG):

The Baby Support Grant of $3000 will be extended for eligible Singaporean children born between 1 October 2022 and 13 February 2023. The parents will be notified when the extended BSG is  disbursed in the second half of 2023.

Working Mother’s Child Relief Adjustment:

In place of a percentage of the eligible working mother’s earned income, the Working Mother’s Child Relief will be changed to a fixed dollar tax relief. This will be effective from the year of assessment 2025. This is valid for eligible working mothers of qualifying Singaporean children born or adopted on or after 1 January 2024.

With a host of these measures, we hope Singapore will start to see an increase in the number of births per year. A growth in population is important for Singapore’s long-term future.

Reference and Resources:

https://www.madeforfamilies.gov.sg/

This article excerpts many of the budget proposals. Please refer to official government websites for complete details.