Here’s a breath of fresh fiscal air for local parents with little ones born on or after the day of love–14 February 2023.
The enhanced Baby Bonus, a delightful financial surprise unveiled in Budget 2023, is set to roll out next month, to be exact, from 1 August 2023, months ahead of its initially planned debut in early 2024.
These revamped benefits cater to eligible Singaporean tots, promising a more generous Baby Bonus Cash Gift, extended payouts, and augmented government top-ups in their Child Development Accounts (CDA).
In an announcement on Friday, 28 July 2023, the Ministry of Social and Family Development (MSF) and the National Population and Talent Division (NPTD) revealed that the wheels of legislation and system updates have turned faster than expected, enabling an earlier launch on 1 August 2023.
Rewinding to the Budget speech on 14 February 2023, Deputy Prime Minister and Finance Minister Lawrence Wong unveiled a S$3,000 boost to the Baby Bonus Cash Gift for eligible Singaporean newborns from that day onwards.
In addition, he announced the rejigged payout schedule, designed to provide a steady stream of financial support every six months until the child reaches six and a half years old.
Further sweetening the deal, the initial CDA First Step Grant will grow from S$3,000 to S$5,000.
For the first and second child, the government will also raise the co-matching maximum by S$1,000, matching parents’ CDA contributions dollar for dollar, up to a set level.
So, what does this mean for parents?
With these adjustments, families welcoming babies from 14 February this year will receive S$11,000 each for their first and second children, and S$13,000 each for their third and subsequent children as part of the Baby Bonus Cash Gifts.
The eligibility criteria for the Baby Bonus Cash Gift require the child to be a Singapore citizen and their parents to be in a lawful marriage.
Want to check if your child is eligible?
You can do so via this link: babybonus-eservices.msf.gov.sg/parent-helper
As for the payout timeline, a child enrolled in the Baby Bonus Scheme from 1 August 2023 will receive their First Step Grant in their CDA within two weeks of opening their accounts.
Government co-matching contributions will also be received within two weeks of depositing money into CDAs, excluding public holidays.
A phased approach will be followed for disbursement to children enrolled in the scheme from 14 February to 31 July 2023.
For more in-depth information and updates to the Baby Bonus Scheme, you can visit the official website: babybonus.msf.gov.sg.
