Planning to start a family soon? Baby bonus cash gifts and more await you. Find out more about how the nation is supporting parents-to-be financially.
With all the uncertainties brought about by the ongoing pandemic, it is unsurprising that some couples have chosen to delay their parenthood plans. But for those who are sticking with their hopes and dreams of becoming parents soon, know that support is available in the form of baby bonus cash gifts, subsidy, tax relief and rebates, Government-paid leave schemes and more.
- Baby Support Grant
- Baby Bonus Cash Gift
- Child Development Account
- Monthly subsidy for full-day infant care
- Other Government-led pro-family initiatives
- Interesting things you should know about
#1 Baby Support Grant
The one-off Baby Support Grant of $3,000 is offered to babies born from 1 October 2020 to 30 September 2022. This initiative was borne out of necessity to reassure couples that they can proceed with their parenthood plans despite the ongoing pandemic.
When can parents receive the grant? Parents can expect to receive the Baby Support Grant within one month of enrolment into Baby Bonus Scheme, or after 1 April 2021, whichever is later.
#2 Baby Bonus Cash Gift
Like its name suggests, the Baby Bonus Cash Gift is a bonus cash gift given to parents of newborn babies. How much parents can receive is essentially pegged to the birth order of their child. In case you were wondering, the Baby Bonus Cash Gift is disbursed in five instalments over an 18-month period.
- For the 1st and 2nd child, the Baby Bonus Cash Gift stands at $8,000 per child.
- For the 3rd and subsequent child, the Baby Bonus Cash Gift stands at $10,000 per child
#3 Child Development Account
Part of the baby bonus scheme, the Child Development Account is a special savings account meant to help parents with the cost of raising their child. This savings account is truly special — the Government will match savings deposited by parents dollar for dollar, up to a cap of $3,000 for the 1st and 2nd child, $9,000 for the 3rd and 4th child, and $15,000 for the 5th and subsequent child.
To start, no contribution by parents is required. The Government will contribute $3,000 to the baby’s Child Development Account. The savings in the Child Development Account can be used to pay for healthcare and educational expenses at Baby Bonus Approved institutions.
Did you know newborns will receive a $4,000 MediSave grant in their MediSave account? Once a newborn’s birth is registered, the $4,000 MediSave grant will automatically be deposited into his or her MediSave account. This grant is supposed to help parents defray their child’s healthcare expenses, such as recommended childhood vaccinations, hospitalisation and approved outpatient treatments, as well as MediShield Life premiums.
On a side note, if you are planning to conceive anytime soon, definitely consider the MediSave Maternity Package. This package lets you tap on your MediSave account to pay for part of your pre-delivery care and delivery medical expenses. How much of your MediSave account can you utilise then? You can use up to $900 for pre-delivery medical expenses; between $750 and $2,150 for delivery expenses (depending on the type of procedure); and up to $450 for each day’s stay in the hospital.
#5 Monthly subsidy for full-day infant care
Many might not be aware but the Government is offering a Basic Subsidy of $600 for full-day infant care for families with working mothers. For families with gross monthly household incomes of $12,000 and below, they will be eligible for the enhanced Additional Subsidies.
Here’s a quick look at how much subsidy your family is eligible to receive:
Families are eligible for the monthly full-day infant care subsidy if they have Singaporean infants aged 2 to 18 months.
For families with non-working mothers, they will be eligible for a Basic Subsidy of up to $150.
Other Government-led pro-family initiatives
To support families, the Government is also doing its part to make childcare more affordable for families with Singaporean kids aged between 18 months and seven-years-old. Families with working mothers can expect to receive a monthly Basic Subsidy of $300 to defray the cost of full-day childcare programmes. Such families will enjoy Additional Subsidy if their gross monthly household incomes are $12,000 and below.
With effect from 1 November 2020, Singaporean kids also enjoy full subsidies for nationally recommended vaccinations and childhood developmental screenings. This should be an extra piece of good news for parents, financially speaking.
|Tax Relief Schemes||Details|
|Qualifying Child Relief||$4,000 per child|
|Handicapped Child Relief||$7,500 per child|
|Working Mother’s Child Relief||15% of earned income for their 1st child; 20% for the 2nd; and 25% per child for all subsequent children (max. cap at 100% of earned income)|
|Grandparent Caregiver Relief||$3,000 relief for working mothers if their parents, parents-in-law, grandparents or grandparents-in-law care for their child aged 12 and below|
Next up is the Parenthood Tax Rebate. Parents may share the Parenthood Tax Rebate to offset against their income tax payable, with any unutilised amount of the rebate carried forward to offset against their income tax payable for subsequent years. The rebate amount (per child) varies depending on the birth order of the child:
- $5,000 for the 1st child
- $10,000 for the 2nd child
- $20,000 for the 3rd and subsequent child
Interesting things you should know about
Have you wondered what would happen to your child’s Child Development Account at the end of his or her 12th year? The account will be closed but any unused funds in the account will be transferred to the Post-Secondary Education Account (PSEA), up to a cap.
Did you also know that adopted children are also eligible for Baby Bonus if they meet the eligibility conditions? These are just some of the interesting nuggets of information that many Singaporeans may not even be aware of.
While everyone knows that raising a child is an expensive albeit fulfilling endeavour, it is nice to know that the cash gifts, tax relief and rebates, Child Development Account and more are available to parents.
For couples intending to tie the knot as well as parents-to-be, definitely check out the SOMPO PA Star personal accident insurance plan. Unique in its own right, this family-oriented product offers additional perks like marriage and baby bonus allowance of $100 each and more!
Read these next:
A Guide To Maternity Insurance For Mums-To-Be (And Panicky Dads-To-Be)
Baby Insurance: What’s Worth Buying For Your Newborn?
Best Alternatives to Savings Accounts in Singapore
Cheapest Baby Products And Where To Find Them
UOB Lady’s Savings Account: Free Medical Coverage For All Women