Introduction
Singapore’s total fertility rate fell to a record low of 0.87 in 2025, one of the lowest in the world. At this year’s National Day Rally on 23 August, Prime Minister Lawrence Wong announced the most significant overhaul of family support in years. It brings more money per child, more childcare leave, cheaper preschools and easier access to housing. For employers, the leave changes are the part that will affect daily operations.
The SG Child Support Package
A new SG Child Support Package replaces the Baby Bonus scheme and treats every child the same, whatever their birth order.
- Child credits: S$2,000 a year from age 1 to 16.
- Education: Edusave top-ups every year in primary and secondary school, and S$10,000 paid into a post-secondary education account at 17.
- Total: about S$70,000 in direct support per child by age 17, compared with S$27,500 to S$56,500 today depending on birth order.
Children born on or after 1 April 2027 will be fully covered. Children already born will receive benefits based on their age from 2026.
Leave: what changes for employers
| Current | New | |
|---|---|---|
| Childcare leave per working parent | 6 days if youngest child is 6 or under; 2 days if 7–12 | 8 days (one child), 10 days (two), 12 days (three or more), for children 12 and under |
| Who pays for statutory child-related leave | Shared between Government and employers | Government, up to the reimbursement limit |
The start date for the new leave scheme has not yet been announced. When it is, HR teams will need to update policies, leave systems and reimbursement claims. The Government’s decision to fund statutory child-related leave fully takes away the cost argument for discouraging it. Wong was direct: “Support parents in your organisations and give them confidence to take the leave they are entitled to… Make sure that becoming a parent never becomes a disadvantage in someone’s career.”
That message links to the Workplace Fairness Act, which will cover discrimination based on caregiving responsibilities when it takes effect. Employers should treat the new leave rights and the coming anti-discrimination rules as one compliance programme.
Preschool fees and housing
Fees at government-supported preschools will fall to S$150 a month for full-day childcare and S$300 for infant care by 2030, regardless of household income. Higher-income families currently pay close to S$600 and over S$1,000 respectively. The reduction will be phased in as the network of anchor and partner operators grows.
On housing, the income ceiling for new HDB Build-To-Order flats rises from S$14,000 to S$16,000, and for executive condominiums from S$16,000 to S$18,000. From the February 2027 sales exercise, first-time buyers will get one extra ballot chance for every child they have or are expecting.
A regional test case
Japan, South Korea, Hong Kong, Taiwan and China face similar demographic problems, and none has yet found a policy mix that clearly raises birth rates. Singapore’s approach combines universal cash support, state-funded leave, cheaper childcare and housing priority, and it will be watched closely across the region. Whether it changes behaviour, rather than only easing costs, will take years to tell.
Summary
Singapore has rebuilt its family support around about S$70,000 per child, more childcare leave tied to family size, state-funded statutory leave, much cheaper preschools and better housing access for parents. Employers should prepare for longer leave entitlements and plan them alongside the Workplace Fairness Act. For the wider region, Singapore is now running one of the most comprehensive pro-family policy experiments in Asia.
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