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Baby Bonus Singapore (2018) – What Is Your Baby Bonus Payout?

baby bonus singapore payout 2018

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During the Pioneer and Merdeka generations, it was normal to use your children as free labour at your hawker stall or provision shop. But now that child labour is outlawed, you need to find some other way to make money from your children. That’s where the Baby Bonus scheme comes in.

Since birth rates in Singapore have been sliding, the Baby Bonus is the Singapore government’s unsubtle way of encouraging us to have more kids. Child rearing is expensive business in Singapore, and the extra cash should go some way in defraying the costs.

Plus, it’s almost like a loyalty programme. The more kids you have, the more money you get! So, just how much can you receive? Here’s a guide to figuring our your Baby Bonus payout in Singapore.

 

What is this Baby Bonus scheme all about?

The Baby Bonus scheme’s full name is actually the Child Development Co-Savings Scheme. The Baby Bonus payout comes in 3 components: Cash Gift, CDA First Step, and dollar-for-dollar matching.

Cash Gift ($8,000 to $10,000): This is the first batch of free money you’ll get with each child, and is credited to your bank account. You can register for the scheme as early as 8 weeks before the birth. However, you need to be part of a state-sanctioned nuclear family to get this cash. Unwed mums do not receive the Cash Gift.

CDA First Step ($3,000): This is a grant that the government deposits when you open a CDA account (Child Development Account) in your baby’s name. The CDA account is automatically opened once your child is born. You just need to choose between DBS, OCBC and UOB to manage the account.

Dollar-for-dollar matching (up to $15,000, amount depends on birth order): The CDA is a co-savings account, meaning for each $1 you put in your baby’s account, the government will give him another $1. This happens all the way until age 12, with limits set depending on the birth order of your child.

Depending on the birth order of your child, this is how much you can get under the Baby Bonus scheme:

Birth order Total Baby Bonus payout
1st child Up to $14,000
2nd child Up to $14,000
3rd child Up to $22,000
4th child Up to $22,000
5th child onwards Up to $28,000

Scroll down to the relevant birth order for further details of the Baby Bonus payout.

 

Baby Bonus payout for 1st or 2nd child – $14,000

For your 1st or 2nd child, the government will give you up to $14,000. Here’s how it works out:

Baby Bonus component Amount given by government When
Cash Gift $8,000 Staggered; see below
CDA First Step $3,000 3 to 5 working days after your child’s birth is registered
Dollar-for-dollar matching Up to $3,000 Dollar-for-dollar matching is done within 2 weeks
TOTAL Up to $14,000

The Cash Gift component of the Baby Bonus is staggered according to the following schedule:

When Amount given under Cash Gift
Within 3 weeks of joining the scheme $3,000
When your child is 6 months old $1,500
When your child is 12 months old $1,500
When your child is 15 months old $1,000
When your child is 18 months old $1,000
TOTAL CASH GIFT $8,000

 

Baby Bonus payout for 3rd or 4th child – $22,000

For your 3rd and 4th child, the government will give you up to $22,000. Here’s how it works out:

Baby Bonus component Amount given by government When
Cash Gift $10,000 Staggered; see below
CDA First Step $3,000 3 to 5 working days after your child’s birth is registered
Dollar-for-dollar matching Up to $9,000 Dollar-for-dollar matching is done within 2 weeks
TOTAL Up to $22,000

The Cash Gift component of the Baby Bonus is staggered according to the following schedule:

When Amount given under Cash Gift
Within 3 weeks of joining the scheme $4,000
When your child is 6 months old $2,000
When your child is 12 months old $2,000
When your child is 15 months old $1,000
When your child is 18 months old $1,000
TOTAL CASH GIFT $10,000

 

Baby Bonus payout for 5th child onwards – $28,000

For your 5th child and any other children thereafter, the government will give you up to $28,000. Here’s how it works out:

Baby Bonus component Amount given by government When
Cash Gift $10,000 Staggered; see below
CDA First Step $3,000 3 to 5 working days after your child’s birth is registered
Dollar-for-dollar matching Up to $15,000 Dollar-for-dollar matching is done within 2 weeks
TOTAL Up to $28,000

For the 5th child onwards, the Cash Gift component of the Baby Bonus is staggered according to the following schedule:

When Amount given under Cash Gift
Within 3 weeks of joining the scheme $4,000
When your child is 6 months old $2,000
When your child is 12 months old $2,000
When your child is 15 months old $1,000
When your child is 18 months old $1,000
TOTAL CASH GIFT $10,000

 

Do you get the Baby Bonus if you’re a single parent?

In Singapore, unwed mums do not get the maximum Baby Bonus (even though they’re the ones who are more likely to require financial assistance…)

Single parents are disqualified from the $8,000 to $10,000 Cash Gift component. However, the child will still get their own CDA, and is entitled to the $3,000 CDA First Step Grant as well as the usual dollar-for-dollar matching.

Here’s a comparison of how much less single parents get for the Baby Bonus payout as compared to their peers:

Birth order Baby Bonus payout (married parents) Baby Bonus payout (single parents)
1st child Up to $14,000 Up to $6,000
2nd child Up to $14,000 Up to $6,000
3rd child Up to $22,000 Up to $12,000
4th child Up to $22,000 Up to $12,000
5th child onwards Up to $28,000 Up to $18,000

For a more in-depth guide to child subsidies and financial assistance for single parents in Singapore, read our guide.

 

What do you need to do to get the Baby Bonus payout?

Here’s a step-by-step guide to how you can get the money.

Step 1: Have a baby. Hopefully we don’t need to tell you how to do this. If you adopt a child, you are also eligible for the Baby Bonus.

Step 2: Enrol in the Baby Bonus scheme. You will need a valid marriage cert for this, and your child needs to be born in Singapore or have Singapore citizenship. You can sign up for the Baby Bonus scheme online, as early as 8 weeks before the delivery date.

Step 3: Register your baby’s birth. This will automatically open your child’s CDA in 3 to 5 working days. You can also open a CDA account online.

Step 4: Save money in your child’s CDA. Do this before he turns 12, and the government will do dollar-for-dollar matching all the way until you hit the cap (based on birth order). It’s super worth it – we can’t think of any other investment that will give you a 100% yield.

However, note that funds in the CDA account is locked up and can only be used for education and healthcare expenses for your child, and only at Baby Bonus approved childcare centres, kindergartens, hospitals, clinics, etc. So, if you anticipate cash flow problems, don’t be in too much of a hurry to max out your Baby Bonus just yet.

For more about the CDA account and what you can use it on, read our guide.

 

Other child care subsidies & benefits in Singapore

Apart from the Baby Bonus, there are other child care subsidies you can get to raise your kids. It’s no small sum either. Added together, they amount to more than $50,000 in either subsidies or savings.

Medisave Grant for Newborns ($4,000): All Singapore babies born on or after 1 January 2015 will get a CPF Medisave account and the money will be automatically credited to the account. You can use it to pay for your child’s MediShield life premiums, recommended childhood vaccinations, hospitalisation and approved outpatient treatment.

Infantcare (up to $600) and childcare (up to $300) subsidies: Singaporean kids who are enrolled in an infantcare or childcare licensed by ECDA get their fees subsidised. However, the better benefits are for working mothers. Non-working mothers get only up to $150. (Dads, consider quitting your jobs and staying home to care for the kids.)

Additional Childcare Subsidy (up to $540 for infantcare and $440 for childcare): This is additional aid for lower income parents with a monthly household income of $7,500 or less.

Kindergarten Fee Assistance Scheme (up to $170): Singaporean children from lower income families ($6,000 and below) can attend kindergartens at a subsidised rates. Subsidies are 20% to 99% of fees.

Start Up Grant (up to $240): Low income families ($1,900 and below) get additional cash to help pay for kindergarten stuff like registration fees, uniforms, materials and so on.

Maid levy ($205): You can get a subsidised rate for hiring a domestic helper to help care for your child up to age 16. So instead of paying $265 a month, you pay $60.

And in a few years’ time, when your baby is old enough to go to primary school, a whole other set of financial schemes kick in: Edusave, PSEA, MOE Financial Assistance Scheme and so on. Read our guide to find out more.

Is the Baby Bonus enough to help with the cost of raising a child in Singapore? Tell us what you think in the comments!

 

Related articles

CDA Account Singapore – How to Open One & Start Maxing Out Your Baby Bonus

The Cost Of Having A Newborn Baby In Singapore – Delivery Charges, Doctor’s Fees and Everything Else

Child Care Subsidies in Singapore 2018 – What Do You Qualify For?

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