baby bonus

DEFINITION

A special incentive scheme launched by the Singapore Government to encourage Singaporeans to have more children and to lighten the financial burden of raising children.

ETYMOLOGY

• The baby bonus Scheme is part of the Marriage and Parenthood Package, which comprises two parts: the cash gift and the Child Development Account (CDA). The CDA is a special savings account where savings deposited by parents are matched dollar-for-dollar by the Government (up to a cap), before their child reaches a certain age limit.
• The Baby Bonus Scheme was first announced in 2000 by then Prime Minister Goh Chok Tong during the National Day Rally.
• In 2001, the Baby Bonus Scheme was officially launched. The CDA was set up by the Government for couples whose second or third child was born on or after 1 April 2001, with regular deposits made into the account until the child reaches six years old. Before a child’s sixth birthday, savings deposited by their parents are matched dollar-for-dollar by the Government, up to a cap. For the second child, $500 will be deposited every year by the Government, with the Government matching savings deposited by the couple up to $1000. For the third child, $1000 will be deposited every year by the Government, with dollar-for-dollar matching up to $2000.
• In 2004, the Baby Bonus Scheme was extended to the first and fourth child (born in or after August 2004), while the cash grant and dollar-for-dollar-matching amounts for each child also increased.
• In 2008, the Baby Bonus Scheme was enhanced, with increased benefits to the first and second child, and with benefits extended to beyond the fourth child.
• In 2013, the Baby Bonus cash gift was increased again.
• In 2015, Prime Minister Lee Hsien Loong announced enhancements to the Baby Bonus Scheme during the National Day Rally. The Baby Bonus cash gift was increased again, with the first two children (born on or after 1 January 2015) each eligible to receive $8000, and the third and subsequent children (born on or after 1 January 2015) each eligible to receive $10,000. Children born on or after 24 March 2016 will automatically receive a Child Development Account (CDA) First Step Grant of $3000 in their CDA account. In addition, savings deposited by parents will be matched dollar-for-dollar by the Government up to a cap, with the first two children receiving up to $3000, the third and fourth children receiving up to $9000, and the fifth child and subsequent children to receive up to $15,000.

SAMPLE SENTENCE

Apart from subsidies, the Government also provides schemes such as the Baby Bonus Scheme and the Child Development Account to help families afford childcare costs, and support childcare facility operators and their partners. Their aim is to encourage these operators to provide quality education at affordable prices to all families. (Lianhe Zaobao, 02/07/2018)