The Ultimate Guide To Baby Bonus In Singapore (Payout, Schedule, CDA)
 
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The Ultimate Guide To Baby Bonus In Singapore (Payout, Schedule, CDA)

Ming Feng
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S$14,425 is the amount we are looking at, on average when we talk about the cost of delivering a baby.

Cost of giving birth in Singapore

 

In an attempt to boost Singapore’s birth rates, the government launched The Baby Bonus scheme to encourage more Singaporeans to have babies.


What Is Wrong With Singapore’s Birth Rate?

The number of babies born to Singaporean parents in the year 2017 is one of the lowest Singapore has ever experience.

The fertility rate for Singapore is low, at 1.14 as of the year 2018. The fertility rate is defined as the number of children born per woman.

According to the UN, Population Division, 2.1 children per woman is known as the Replacement-level of fertility. Any number below 2.1 will mean a decrease in population size.

Woman Sneezing Baby Out
Source: giphy

Since it takes “two hands to clap”, a birth rate of 1.14 for each couple generally means that the population will decline drastically by close to 50% with each passing generation.


TL;DR: Make More Babies Get More Baby Bonus Benefits!

Without sounding too much like a government campaign, here are the details that Singaporeans need to know with regards to the baby bonus:

Birth OrderCash Gift
(inclusive of $2,000 baby bonus plus)
CDA BenefitsTotal Baby Bonus Received
CDA Final Step GrantDollar-for-Dollar Matching Cap
1st and 2nd BabyS$8,000S$3,000Up to $3,000Up to $14,000
3rd and 4th BabyS$10,000Up to $9,000Up to $22,000
5th Baby and HigherS$10,000Up to $15,000Up to $28,000

Source: Ministry of Social and Family Development

  • The first and second baby can receive up to S$14,000 in terms of Baby Bonus
  • The third and fourth will receive up to S$22,000.
  • The fifth baby onwards can receive up to S$28,000 in terms of Baby Bonus

Baby Bonus, CDA, Payout amount and schedule

 

Disclaimer: We do not do sponsored posts. We’re not a government mouthpiece either so this article is purely for your reference and education!


Step-By-Step Guide To Receiving Your Baby Bonus

To be eligible, the parents of the baby has to be:

  • Lawfully married
  • The baby is a Singapore Citizen at the time of birth

Here are some tools to help you with your Baby Bonus Application:

  • You can submit an online form to join the Baby Bonus scheme as early as 2 months before the estimated delivery date.
  • To check if the child is eligible for Baby Bonus cash gift and/or CDA benefits, you can use the Eligibility Check Tool.
  • Should you have any other questions, you can always ask the friendly Seedly Community or call the Baby Bonus Hotline at 1800-253-7707

Baby Bonus Cash Gift Schedule And Payout

Upon the birth registration of your baby or the completion of the baby bonus form online, you can expect to receive the cash gift portion of the baby bonus within 7 to 10 working days.

 Baby Bonus Cash GiftBaby Bonus Plus
Birth OrderWithin 10 Working DaysAround 6 MonthsAround 12 MonthsAround 15 MonthsAround 18 Months
First and Second$3,000$1,500$1,500$1,000$1,000
Third and Above$4,000$2,000$2,000$1,000$1,000

Source: Ministry of Social and Family Development

Child Development Account (CDA)

On top of the more direct cash gift payout, eligible Singaporean baby will be able to enjoy a special savings account called the Child Development Account (CDA).

This account will be opened automatically when the baby joins the Baby Bonus Scheme.

You will also be able to select the CDA bank between DBS, OCBC or UOB.

CDA First Step

  • All Singaporean children born from 24th March 2016 onwards will receive an initial $3,000 grant in their CDA.

Government dollar-for-dollar matching contributions

  • If you deposit $1,000 into the CDA, the government will give you an additional $1,000 the next month. (Up to $15,000)

Here’s how much you can get out of CDA:

Child OrderCDA BenefitsTotal CDA Benefits
CDA First StepDollar-for-dollar Matching
1st & 2nd child$3,000Up to $3,000Up to $6,000
3rd & 4th childUp to $9,000Up to $12,000
5th child & subsequentUp to $15,000Up to $18,000

The CDA account can be kept open until your child is 12 years old, so use those all those years to save up the amount necessary to bag you the entire bonus.

Maximising the benefit of a Child Development Account (CDA) depends a lot on the contribution from the parents due to the dollar-to-dollar matching.

Parenthood Tax Rebate (PTR)

One other benefit is the Parenthood Tax Rebate (PTR). This benefit includes single parents and parents who adopted a child.

To qualify for PTR, you need to be a Singapore tax-paying resident, who is either married, divorced or widowed in the relevant year.

Here’s the amount of tax rebate you can enjoy:

Order Of Child
(Born/ Adopted)
PTR

(Child born in the year 2004 to 2007)
PTR

(Child born from the year 2008 onwards
1st$0$5,000
2nd$10,000$10,000
3rd$20,000$20,000
4th$20,000$20,000
5th and subsequent child$0$20,000 per child

Do Single Parents Qualify For The Baby Bonus?

In Singapore, single parents (eg. unwed moms) do not get to enjoy the maximum Baby Bonus.

This is extremely worrying, given that single parents are usually the ones that require more assistance.

For single parents in Singapore, they are:

  • Disqualified from the Baby Bonus Cash Gift Component as a whole.
  • Qualified for the full CDA Bonus package which is:
    Child OrderCDA BenefitsTotal CDA Benefits
    CDA First StepDollar-for-dollar Matching
    1st & 2nd child$3,000Up to $3,000Up to $6,000
    3rd & 4th childUp to $9,000Up to $12,000
    5th child & subsequentUp to $15,000Up to $18,000

Side note: Mad respect for single parents out there! It is definitely not an easy task! Hustle on!

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About Ming Feng
A stint in Bloomberg gifted me with a beer belly, which only grew larger when I moved on to become a Professional Trader. Now I turn caffeine into digestible finance-related content.
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