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Higher Baby Bonus, 4 Weeks Paternity Leave & More: 5 Ways the Singapore Budget 2023 Affects Families

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Heard the Singapore Budget 2023 buzz but not sure how it affects you? From an increased Baby Bonus payout to more paternity leave and GST vouchers, here’s how the new measures will help Singaporean families

We did the heavy lifting so you don’t have to! Announcements made at the Singapore Budget 2023 affects everyone in Singapore – the Goods and Service Tax (GST) increase in particular, which has just been raised to 8% from January 2023 and will be 9% in January 2024. However, the government has also announced measures and support to Singaporeans over the next few years to ease the transition.

Keep scrolling to learn more about how the measures just announced in the Singapore Budget 2023 apply to families in Singapore, including how much you’ll be getting in the Baby Bonus Scheme and cash payouts (GST Vouchers)!

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1. Baby Bonus: Now $11,000 for your first and second children, $13,000 for third child onwards

Singaporean parents used to receive $8,000 for their first and second children, and $10,000 for every subsequent child. Starting 14 February 2023, the amount has been upped to $11,000 for the first and second children and $13,000 for the third child onwards.

The new Baby Bonus Payout schedule:

First and second children
$3,000 at time of birth
$1,500 at 6 months old
$1,500 at 12 months old
$1,000 at 18 months old
$400 at 2 years old and every 6 months afterwards, until child turns 6.5 years old

Third child onwards
$4,000 at time of birth
$2,000 at 6 months old
$2,000 at 12 months old
$1,000 at 18 months old
$400 at 2 years old and every 6 months afterwards, until child turns 6.5 years old

This works out to be up to $9,000 over the first 18 months, followed by $400 every six months until your little one turns 6.5 years old.

Children who are Singapore citizens and whose parents are lawfully married are eligible for the Baby Bonus scheme.

2. Paternity Leave is now up to 4 weeks

Eligible working fathers of Singaporean children born from 1 January 2024 can enjoy government-paid paternity leave of four weeks, up from just two weeks previously. At the moment, employers will not be required to offer the additional two weeks of leave, but those who do so will be reimbursed by the Government. The policy will soon be mandatory (watch this space!).

3. Unpaid Infant Care Leave: Now 12 days per year

Did you know that all parents (of Singaporean children) who have worked with their employer for a continuous period of at least three months are eligible for unpaid infant care leave? The number is currently at six days. Starting 1 January 2024, each parent will receive 12 days of unpaid infant care leave per year for the first two years of their child’s life.

Here’s hoping this will eventually be part of our paid leave entitlements in time to come!

4. Increase in CDA Grants & Contributions

Your little one’s Child Development Account (CDA) will see more grants and contributions. Funds in the CDA can be used for preschool fees and healthcare bills at participating clinics and government hospitals.

All eligible Singaporean children born from 14 February 2023 will receive $5,000 in their CDA, up from $3,000 previously. The government will also match parents’ contributions to the CDA dollar-for-dollar, up to $4,000 for the first child and up to $7,000 for the second child. The amounts remain unchanged for subsequent children.

5. Budget 2023: Cash Payouts & Savings

GST Vouchers

All Singaporean adults will receive cash payouts of up to $2,250 between 2022 to 2026, depending on their annual income (AI) and property ownership – yes, that means more of us are eligible for the Assurance Package for GST!

All eligible adult Singaporeans above 21 years old and only owning up to one property will receive the next payout (Cost-of-Living Special Payment) in June 2023:

AI≤$22,000: $400
AI between $22,000 and $34,000:
AI between $34,000 and $100,000:
Not eligible

The next payout under the Assurance Package will be made in December 2023:

AI≤$34,000: $600
AI between $34,000 and $100,000: $350
AI>$100,000: $200

Find out more about your GST Voucher eligibility here!

Savings on Utilities

Eligible households will receive additional GST Voucher U-Save rebates yearly until 2026, with the amount depending on their HDB flat type. In 2023, the Additional GST Voucher U-Save under the Assurance Package will be as follows:

1- to 2-room HDB flat: $95
3-room HDB flat: $85
4-room HDB flat: $75
5-room HDB flat: $65
Executive/Multi-Generation HDB flat: $55

Hawker Centre & Supermarket Vouchers

All Singaporean households should have received $300 worth of CDC vouchers in January 2023. These CDC vouchers can be used at participating heartland shops, hawker centres and major supermarkets. Find out how to claim them here.

Announced in past years’ Budgets

singapore budget 2020 education preschool subsidies kindergarten
Image: Ministry of Education via Facebook

More Affordable Preschool Fees

Currently, just over half of the preschools in Singapore are government-supported preschools, but by 2025 the share of government-supported preschools will climb to 80%. This will mean more preschools receiving government funding, and parents being able to place their children in a bigger pool of eligible preschools with affordable school fees.

     Read More: 2023 Guide to Kindergartens and Preschools in Singapore

Local Secondary Schools, Pre-university & Institutes of Higher Education

  • All students will get higher transport subsidies, and for secondary school students, more school meal subsidies.
  • Pre-university students from lower-income families will get up to $1,000 under the Education Ministry’s Financial Assistance Scheme, raised from $900 previously.
  • Full-time Institute of Technical Education (ITE) students from the lowest-income families will now receive a 100% fee subsidy.

$500 SkillsFuture credit top-up for Singaporeans aged 25 and older

Now would be the perfect time to learn a new skill thanks to the $500 SkillsFuture credit top-up for every Singaporean aged 25 and older. Now eligible for use and expiring by December 2025, Singaporeans are encouraged to make use of the current economic slowdown to attend available courses under the SkillsFuture scheme. From coding to cupcake-baking to learning Japanese, there are hundreds (if not thousands) of courses available; browse some amazing MySkillsFuture courses here. P.S. Those aged 40 to 60 will also get another top-up of $500!

Enhancements to Workfare Income Supplement

The Workfare Income Supplement (WIS) will now be applicable to younger workers aged 30 to 34, and the qualifying monthly income cap will be raised to $2,500. Maximum payouts under the Workfare will also be raised. Those who qualify for WIS will receive annual payouts, 40% of it in cash and 60% in CPF contributions. The new enhancements will see them receiving:

Age 30-34: $2,100
Age 35-44: $3,000
Age 45-59: $3,600
Age 60 and above: $4,200
All persons with disabilities: $4,200

Taxes Raised for High-income Earners

Personal income tax rates for top earners in Singapore will be raised to 23% for the portion of chargeable income in excess of $500,000 up to $1 million, and 24% for that in excess of $1 million.

For non-owner-occupied properties, the tax rates will rise to 11-27% in 2023, then 12-36% in 2024.

Tax rates for owner-occupied properties with annual values of more than $30,000 will also be raised. There will be a taxation range of 5-23% beyond the first $30,000 valuation by 2023, with a further increase to 6-32% in 2024.

Read more: All About Upskilling and Why It’s the Key to Lifelong Learning

For more on all the new measures announced in the Singapore Budget 2023, visit

All info extracted from Ministry of Finance Lead image sourced via Getty; classroom image by Ministry of Education

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