Last Updated on February 24, 2024 by Parentology

Becoming a parent is an incredible journey filled with immeasurable joy. However, it also entails a lifetime of responsibilities, encompassing physical, emotional, mental, and financial aspects.

This guide aims to shed light on various baby grants offered by the Singapore government, providing valuable assistance to new parents in managing the financial aspects of raising their little ones.

Raising a child in Singapore comes with its fair share of expenses. From pregnancy to childbirth, parents often spend between $5,000 to $17,000, and the costs of raising a baby in the first year alone can range from $7,000 to near $20, 000.

To alleviate this financial burden, the government has implemented several baby grants designed to support new parents. In the following sections, we will explore each of these grants, outlining their eligibility criteria and benefits for you and your little ones.

 

Baby Bonus Cash Gift: Financial Support for New Parents

The Baby Bonus Cash Gift is a valuable baby grant that provides monetary assistance to parents upon the birth of their newborn. The amount received through this grant varies based on the birth order of the child.

Exciting news was unveiled in the Singapore Budget 2023, where it was announced that eligible children born on or after 14 February 2023 would receive an additional $3,000 as part of the Baby Bonus Cash Gift. Consequently, the cash payout has been increased to a range of $11,000 (for 1st and 2nd children) to $13,000 (for 3rd and subsequent children).

Birth order	Baby Bonus Scheme (enhanced)
	Baby Bonus Cash Gift	Child Development Account (for approved uses, such as healthcare and preschool fees)
		First Step Grant  (parents’ savings not required)	Maximum Government co-matching
1st Child	$11,000 (+$3,000)	$5,000 (+$2,000)	$4,000 (+$1,000)
2nd Child		$5,000 (+$2,000)	$7,000 (+$1,000)
3rd Child	$13,000 (+$3,000)	$5,000 (+$2,000)	$9,000
4th Child		$5,000 (+$2,000)	$9,000
5th & Subsequent Child		$5,000 (+$2,000)	$15,000

*Enhanced figures are highlighted in bold. Increases are shown in parentheses. Applicable for eligible Singaporean children born on or after 14 February 2023.

Source: Made For Families

For the first and second child, parents are eligible to receive a total of $7,000 in cash over a duration of 18 months. Following this initial payout, they will receive $400 every six months from the time the child turns 2 years old until they reach 6.5 years old.

As for the third and subsequent children, parents can receive a total of $9,000 in cash over a span of 18 months. Similar to the previous scenario, they will continue to receive $400 every six months starting from when the child reaches 2 years old until they reach 6.5 years old.

 

New Disbursement Schedule

	Current Disbursement Schedule and Quantum		New Disbursement Schedule and Quantum
	Children in the 1st and 2nd birth order	Children in the 3rd and subsequent birth order	Children in the 1st and 2nd birth order	Children in the 3rd and subsequent birth order
At birth	$3,000	$4,000	$3,000	$4,000
6 months	$1,500	$2,000	$1,500	$2,000
12 months	$1,500	$2,000	$1,500	$2,000
15 months	$1,000	$1,000	–	–
18 months	$1,000	$1,000	$1,000	$1,000
2 years until 6.5 years	–		+$400 every six months	+$400 every six months
Total	$8,000	$10,000	$11,000 (+$3,000)	$13,000 (+$3,000)

The figures highlighted in bold represent the updated amounts after enhancements, with the changes from the current amounts indicated in parentheses. Please note that the enhanced Baby Bonus Cash Gift (BBCG) will be disbursed starting from early 2024. The Ministry of Social and Family Development (MSF) will notify parents regarding the disbursement of these enhancements.

Source: Made For Families

Child Development Account (CDA): Supporting Parents with Raising Children

The Child Development Account (CDA) is an integral component of the baby bonus scheme, aimed at assisting parents with the financial obligations of raising their children. The funds accumulated in the CDA account can be utilized to cover educational and healthcare expenses at Approved Institutions, which can be found in the provided list.

CDA First Step Grant: In the 2016 Budget announcement, it was revealed that all Singaporean children born from 24 March 2016 onwards would receive an initial $3,000 in their CDA. However, as part of the 2023 Budget, eligible children born on or after 14 February 2023 will now receive an additional $2,000, resulting in a total CDA First Step Grant of $5,000.

Dollar-for-Dollar Matching: In addition to the First Step Grant, the government offers dollar-for-dollar matching for savings deposited into the child’s CDA. The matching is subject to specific caps based on the birth order of the child:

1st child: Dollar-for-dollar matching capped at $3,000 (for children born before 14 February 2023) and $4,000 (for children born after 14 February 2023).

2nd child: Dollar-for-dollar matching capped at $6,000 (for children born before 14 February 2023) and $7,000 (for children born after 14 February 2023). If a child (2nd birth order) was born before 1 Jan 2021, the maximum government co-matching is $3,000.

3rd and 4th child: Dollar-for-dollar matching capped at $9,000 per child.

5th child and beyond: Dollar-for-dollar matching capped at $15,000 per child.

 

Government Co-Matching

Birth order	CDA
	CDA First Step Grant  (A)	Maximum Government co-matching (B)	Total Government contributions (A+B)	Total amount in CDA, including parents’ contributions to maximise co-matching
1st	$5,000 (+$2,000)	$4,000 (+$1,000)	$9,000 (+$3,000)	$13,000 (+$4,000)
2nd		$7,000 (+$1,000)	$12,000 (+$3,000)	$19,000 (+$4,000)
3rd and 4th		$9,000	$14,000 (+$2,000)	$23,000 (+$2,000)
5th and higher		$15,000	$20,000 (+$2,000)	$35,000 (+$2,000)

*The figures highlighted in bold indicate the amounts after enhancements, with the changes from the current amounts shown in parentheses.

Source: Made For Families

Choosing a Bank for Your CDA

When opening a Child Development Account (CDA), it’s important to select a bank where you can establish the account. The options available for CDA account opening are OCBC, UOB, and POSB, and the process can be conveniently completed online.

We recommend choosing a bank with which you already have an existing internet banking relationship. Opting for a bank you are familiar with will ensure ease of monitoring the CDA, as the account will be linked to your name. By doing so, you won’t need an additional internet banking login to access the account.

Simply approach your choice of bank, the application is fast and usually takes within a week to set up.

 

Medisave: Financial Support for Newborns’ Healthcare

It’s not widely known, but every newborn is entitled to receive a $4,000 Medisave Grant, which will be deposited automatically into their Medisave Account once their birth is registered. No separate application is required for this grant.

The funds in the Medisave Account can be utilized for various healthcare expenses, including the payment of MediShield Life premiums, private integrated shield plan premiums, and any hospitalization costs that may arise.

Check out this insightful article: “Discover the benefits of utilizing your MediSave funds to cover your child’s premiums for MediShield Life.”

In this article, you’ll discover compelling reasons why it’s worth considering utilizing your Medisave Account to cover your child’s MediShield Life premiums. By understanding the advantages of this approach, you can make an informed decision that ensures the best healthcare coverage for your little one.

 

Personal Income Tax Relief and Rebate: Maximizing Benefits for Parents

If you’re currently paying income tax, it’s important to understand that having a child opens up opportunities for tax relief and tax rebates. Let’s take a quick look at the various entitlements you may qualify for:

1. Qualifying Child Relief (QCR): You can claim a tax relief of $4,000 for each qualifying child.
2. Handicapped Child Relief (HCR): If you have a handicapped child, you can claim a tax relief of $7,500. Please note that you can only claim either the QCR or the HCR, not both.
3. Working Mother’s Child Relief (WMCR): Working mothers can benefit from the WMCR. The relief is calculated as a percentage of your earned income, with rates of 15% for the 1st child, 20% for the 2nd child, and 25% for subsequent children. The maximum relief is capped at 100% of your earned income. It’s important to be aware that a personal income tax relief cap of $80,000 applies to the total amount of all tax reliefs claimed for each Year of Assessment. Starting from the Year of Assessment 2025, a fixed dollar relief will be introduced for Singaporean children born or adopted on or after 1 January 2024. Working mothers will be eligible to claim $8,000 for their first child, $10,000 for their second child, and $12,000 for their third and subsequent children.
4. Parenthood Tax Rebate (PTR): The PTR is a tax rebate specifically granted to parents who are paying income tax. Unlike tax relief, which reduces your assessable income, the PTR is a direct rebate based on the income tax you are liable to pay. The rebate is shared between you and your spouse based on an agreed-upon apportionment. Any unused amount of PTR can be carried forward to offset against the income tax payable in subsequent years until the rebate is fully utilized.

It’s important to note that the inclusion of a deceased or stillborn child is considered when determining the order of children. For stillborn children, this applies from the Year of Assessment 2022 onwards for WMCR claims, where the married woman, divorcee, or widow claiming the deduction is the natural mother of the stillborn child.

By understanding and leveraging these tax relief and rebate opportunities, you can optimize your tax benefits as a parent.

Tax Rebate

You and your spouse have the option to share the Parenthood Tax Rebate (PTR) based on an agreed apportionment between both of you. If the combined percentage of PTR claimed does not add up to 100%, or if you are unable to reach an agreement on the apportionment, the PTR will be divided equally between both of you.

Child order	PTR (For child born in 2004 to 2007)	PTR (For child born from 2008 onwards)
1st	$0	$5,000
2nd	$10,000	$10,000
3rd	$20,000	$20,000
4th	$20,000	$20,000
5th and subsequent child	$0	$20,000 per child

Source: IRAS

 

Please note that a deceased or stillborn child is considered when determining the order of children for tax purposes. This applies to the Working Mother’s Child Relief (WMCR) claims starting from the Year of Assessment 2022 onwards. In cases where the married woman, divorcee, or widow claiming the deduction is the natural mother of the stillborn child, the stillborn child will be included in the determination.

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