Baby bonus, is it the first thing in your mind when talking about government’s baby policies? Do you know what are other incentives since 2004 budget? We will list down some here for your reference.

Baby Bonus

If your child is born on or after 1 August 2004. You will get a cash gift of $3,000 each for your 1st and 2nd child and $6,000 each for your 3rd and 4th child.

Your 2nd to 4th children will also enjoy government contributions in the form of a dollar-for-dollar matching for the amount of savings you contribute to your child’s Children Development Account (CDA). The savings will be matched up to the cap of $6,000 for the 2nd child and $12,000 each for the 3rd and 4th child.

From 1 August 2008, OCBC Bank and the Standard Chartered Bank take over from DBS as new managing agents for the Baby Bonus Scheme.

The savings in the CDA may be used to pay fees for


Medisave can be used to pay the delivery and pre-delivery medical expenses incurred for the delivery of the first four living children of the mother on or after 1 August 2004. Prior to 1 August 2004, Medisave can only be used to pay the delivery expenses incurred for delivery of the first three living children.

Medisave can also be used to pay the delivery and pre-delivery expenses incurred for the delivery of the fifth and subsequent child of the mother on or after 1 August 2004, if both parents have a combined Medisave balance of at least $15,000 in their Medisave accounts at the time of delivery.

Read more about how much can you use medisave for maternity expenses.

HDB Housing

You can use the CPF Housing Grant up to $40,000 (in the form of CPF money and not cash) for the initial payment or to reduce the mortgage loan for the flat purchase.

However, CPF housing grant cannot be used to pay the cash-over-valuation (COV) for resale flats transacted above the flats’ market value.

Income Tax Rebates

Working mother’s child relief (WMCR) is introduced from Year of Assessment 2005 onwards to serve the following objectives:

  • Reward families with children holding Singapore citizenship
  • Encourage parents to take up citizenship for their children
  • Encourage married women to remain in the workforce after having children

The changes are:

  • Educational qualifications no longer a must for working mums to get child relief
  • Child relief can be up to $25,000 for each child, up to 4 children
  • Parenthood tax rebate: $10,000 for second child and $20,000 for third and fourth child.

Infant & Child Care Subsidies

A centre-based child care subsidy of up to $150 per month per child is available for Singapore Citizen children and Permanent Resident infants and children below 7 years of age attending licensed child care centres.

A monthly centre-based infant care subsidy of up to $400 is available to Singapore Citizen infants aged 2 to 18 months (for the 1st to the 4th child) enrolled in infant care programmes in licensed child care centres. A pro-rated subsidy is also available for infants and children who enrol in flexible care programmes.

The subsidy rates are based on the programme type and working status of the mother. To qualify as a working mother, a mother must work at least 56 hours per month.

Other Incentives

  • Foreign maid levy is reduced from $345 to $250, when household has child below age 12
  • Paid maternity leave is extended to 12 weeks, from 8 weeks
About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

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