During the National Day Rally 2024, Prime Minister Lawrence Wong announced significant enhancements to parental leave, marking another milestone in Singapore’s ongoing efforts to support families and address the country’s declining birth rate. These new measures build on the initiatives introduced in the Budgets of 2023 and 2024, further reinforcing the government’s commitment to promoting marriage and parenthood.
Over the past few years, the Singaporean government has rolled out various financial incentives to ease the financial burden on new parents. Starting from February 14, 2023, couples with Singaporean babies received an additional $3,000 through the Baby Bonus cash gift.
This means that eligible first- and second-born children now receive $11,000, up from $8,000, while the amount for the third child and subsequent children has increased from $10,000 to $13,000.
Furthermore, the Child Development Account (CDA) First Step Grant, which can be used to offset pre-school and healthcare expenses, was increased from $3,000 to $5,000 for all children born from February 14, 2023.
The co-matching cap for the CDA was also raised by $1,000 for first- and second-born children, with savings deposited by parents now matched dollar for dollar by the Government up to a cap of $4,000 and $7,000, respectively.
Recognising the importance of work-life balance, the government has made significant changes to parental leave entitlements. From January 1, 2024, government-paid paternity leave doubled from two to four weeks on a voluntary basis, while unpaid infant care leave increased from six to 12 days per parent per year during the child’s first two years.
The most notable change, however, is the transition from voluntary to mandatory paternity leave. Starting April 1, 2025, two out of the four weeks of paternity leave will be mandatory, meaning employers will be required to grant this leave as long as fathers meet specific conditions, such as being employed for at least three months before their child’s birth.
In addition to these changes, parental leave will be upgraded from the current 20 weeks of paid leave to 30 weeks shared between a couple. This increase will be implemented in two phases, starting April 1, 2025, when parents will be entitled to six weeks of shared leave.
By April 1, 2026, this will increase to 10 weeks of shared parental leave. Importantly, these additional weeks will no longer come at the expense of the mother’s 16 weeks of maternity leave, allowing both parents to enjoy more time with their newborns without sacrificing maternity benefits.
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The enhancements to parental leave also introduce greater flexibility for working parents. Couples will have the freedom to allocate the 10 weeks of shared parental leave according to their individual needs, ensuring that caregiving arrangements can be tailored to suit their family’s circumstances.
Fathers and mothers can take their shared leave simultaneously or separately, depending on what works best for them. However, any changes to leave-sharing arrangements must be made within four weeks after the child’s birth, giving employers adequate time to plan for the parents’ absence.
For parents who prefer to take their shared parental leave in multiple blocks rather than all at once, this is also possible, provided there is mutual agreement with their employer. In the absence of such an agreement, parents are expected to take their shared leave in one block within the first 26 weeks of the child’s birth.
Employers play a critical role in supporting the enhanced parental leave provisions. Fortunately, the government has ensured that the financial burden of these new entitlements will not fall on employers.
The pay associated with the four weeks of mandatory paternity leave and the 10 weeks of shared parental leave will be fully borne by the Government. This means that businesses can support their employees’ family commitments without facing additional costs.
The government’s weekly payout for maternity leave remains unchanged, capped at $2,500 per week or up to $10,000 per month. Employers are encouraged, though not required, to top up the difference if an employee’s salary exceeds this cap.
The enhancements to parental leave announced at the National Day Rally 2024 are a testament to Singapore’s comprehensive approach to supporting marriage and parenthood. By increasing the amount of time parents can spend with their newborns, while also offering greater flexibility in how this time is used, the government is fostering an environment where families can thrive.
These measures, combined with the financial support provided through the Baby Bonus, CDA, and other initiatives, reflect the government’s unwavering commitment to creating a family-friendly society.
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