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SINGAPORE: Parents who have a second child this year will receive additional financial support through their child’s CDA (Child Development Account).
The Government will double the maximum dollar-for-dollar amount in the CDA from S $ 3,000 to S $ 6,000 for Singapore’s children who are the second child, the minister announced in the Prime Minister’s Office Indranee Rajah on Friday (February 26). ).
This applies to children whose estimated due date or date of birth is January 1 of this year or later. About 12,000 children and their families will benefit from this annually, the Prime Minister’s Office (PMO) said.
Currently, the maximum dollar-for-dollar government contributions to the CDA are the same for the first and second children, at S $ 3,000.
Each child also receives a CDA First Step grant of S $ 3,000, which is automatically credited to the CDA.
With the improvements, the maximum government contribution to CDA in total for the second child will increase to S $ 9,000.
READ: Singapore’s total fertility rate falls to a record low in 2020
The PMO said that nine out of 10 married Singaporeans would like to have two or more children, and nearly two-thirds of them still have them. However, there is an increasing proportion who have only one child.
“I heard from couples in Singapore who shared their concerns about the costs of having a second child, although they want it very much,” said Ms. Indranee, who oversees the National Population and Talent Division at PMO.
He added: “We hope that, despite the pandemic, Singaporeans will continue to pursue their family goals, and we will galvanize a nationwide effort to support them.”
CDA money can only be used for the child’s education and health care needs and is separate from the Baby Bonus to which each child is entitled.
The third and fourth children receive up to S $ 9,000 in government matching funds, while the fifth and subsequent children receive up to S $ 15,000.
Parents must deposit funds into their child’s CDA before receiving the equivalent amount. The Government will match the parent’s savings up to the increased limit beginning April 1, but funds saved in the qualifying child’s CDA prior to April will also receive the increased amount.
SUPPORTING FATHERS AND ADOPTIVE MOTHERS
The PMO also announced that adoptive parents who are currently not eligible for paternity or adoption leave could receive cash in lieu of paid leave, with a new government-paid paternity or adoption benefit.
“This group of parents may have had short-term employment contracts or have an employment contract that ended just before their child was born or adopted, and therefore would not benefit from paternity or adoption leave,” he said. PMO.
Similar to the government-paid maternity benefit, the new schemes will provide fathers with cash benefits instead of paid leave.
It will apply to parents whose date of birth, estimated date of delivery or formal intention to adopt their child is January 1, 2021 or later.
To qualify, parents must have worked a total of at least 90 days in the 12 months prior to the birth of their child or formal intention to adopt.
About 500 working parents and adoptive mothers will benefit annually, Ms. Indranee said.
