Last Updated on February 24, 2024 by Parentology
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Updated Baby Bonus Scheme & Its Enhancements
In preparation for their children’s future, it’s crucial for parents to be informed about the latest changes in governmental support. As of February 14, 2023, Singaporean children who meet the eligibility criteria will benefit from an enhanced Baby Bonus Cash Gift, as well as an increase in government deposits into their Child Development Accounts. It’s exciting news that the enhanced Baby Bonus benefits, which were announced during the 2023 Budget, will be accessible from August 1, which is several months earlier than initially anticipated in early 2024.
This upgraded financial assistance is reserved for eligible Singaporean children who are born on or after February 14, 2023. The enhancement includes a substantial increase in the Baby Bonus Cash Gift, which will be distributed over an extended payout period, in conjunction with a higher level of government contributions to their Child Development Accounts.
The Ministry of Social and Family Development (MSF) along with the National Population and Talent Division (NPTD) issued a press release on July 28, stating that the necessary legislative and system changes have been successfully expedited, thus allowing for the implementation to be advanced to August 1, 2023.
On February 14, during the Budget speech, Deputy Prime Minister and Finance Minister Lawrence Wong revealed a boost of S$3,000 to the Baby Bonus Cash Gift for qualifying Singaporean children born from that date forward. He also announced a restructuring of the payout schedule to facilitate regular financial support every six months until the child reaches the age of six-and-a-half.
The initial CDA First Step Grant will be elevated from S$3,000 to S$5,000, a welcome boost for parents in their endeavor to secure their children’s future.
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In addition to these enhancements, the government has pledged to increase the co-matching cap by S$1,000 for both the first and second child. Under the Baby Bonus Scheme, the government will match parents’ contributions to their child’s CDA on a dollar-for-dollar basis, up to a certain limit.
With these changes in place, parents with babies born after February 14 of this year will benefit from Baby Bonus Cash Gifts of S$11,000 each for their first two children, and a heightened sum of S$13,000 each for the third child and any subsequent children.
It’s important to note that to qualify for the Baby Bonus Cash Gift, the child must be a Singapore citizen and the parents need to be legally married. This is a part of the government’s commitment to support families and assist them in their journey of parenthood.
Enhanced Baby Bonus Scheme
|
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 |
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 |
|
Source: Made for families
Starting from August 1, a child enrolled in the Baby Bonus Scheme will receive their First Step Grant in their Child Development Account within a fortnight of the account opening.
These young beneficiaries will also receive the government’s co-matching contributions within two weeks of parents depositing funds into the CDAs, public holidays notwithstanding.
A phased disbursement plan is in place for children who enrolled in the scheme from February 14 through July 31. For a child who enrolled between February 14 and June 30, the supplementary S$2,000 First Step Grant will be deposited into their CDA by mid-August.
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From August 1, parents can start accumulating savings in the CDA, and the government’s co-matching contributions will be available within two weeks of making deposits, excluding public holidays.
In the case of a child enrolled between July 1 and July 31, the additional S$2,000 First Step Grant will be allocated to their CDA by October 1. Parents of these children can begin saving in the CDA from August 1, however, they might need to wait until October 1 to receive their government co-matching contributions. This timeline helps parents to plan effectively for their children’s future financial security.
The MSF and NPTD have further clarified that any savings deposited after October 1 will be co-matched by the government within a two-week period following the deposits, excluding public holidays. This ensures a steady continuation of financial support for parents invested in their children’s future well-being.
The enhancements made to the Baby Bonus Scheme reflect the Singapore government’s ongoing commitment to support families. The increased cash gifts and co-matching contributions not only provide immediate financial relief but also assist parents in laying a secure financial foundation for their children’s future.
Given these changes, it’s an optimal time to reassess your financial plan. Our skilled financial advisors are readily available to guide you in maximizing the benefits of these adjustments and in achieving your long-term financial goals.
Connect with us today to start planning for a prosperous future for you and your children.
