How to pay less for infant care and childcare

There are various subsidies to support parents with young children for pre-school services. Are you maximising what you could be getting? Check this guide.

So junior is starting infantcare as you bounce back from your maternity leave. Or perhaps, you have just enrolled your 2-year old in childcare, so she can socialise with other children. Here’s what you should know.

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You can also get an Additional Subsidy of up to $440 (for childcare) and $540 (for infant care) if: 

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To find out how much subsidy you might be eligible for, check out this tool: https://www.childcarelink.gov.sg/ccls/home/Subsidy_Calculator.jsp

Baby Bonus Scheme

Parents can also tap on the Baby Bonus Scheme to further defray the costs of raising children. It comprises of a cash gift and a Child Development Account (CDA), a special co-savings scheme for children.


Baby Bonus Cash Gift

In 2015, the government enhanced the Baby Bonus Cash Gift by giving parents of Singapore Citizen children a Baby Bonus Plus of $2,000 cash. This enhanced Baby Bonus Cash Gift is provided to all children, regardless of birth order.

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Child Development Account (CDA)

Under CDA, a special co-savings scheme for children, the government will match dollar-for dollar all savings made by parents into their child’s account, up to a specified cap depending on the child’s birth order.

The scheme, which started in 2001, was enhanced in March last year with what’s known as the CDA First Step. Parents are given an initial balance of $3,000 without needing to save in the CDA first. If they continue to save beyond this initial balance, they will enjoy dollar-for-dollar matching, up to the remaining amount of the Government contribution caps. Parents can save any time before 31 December of the year their child turns 12 years old.

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Parents will receive the CDA First Step automatically after opening a CDA for their child. CDA savings funds can be used for child development needs at Approved Institutions registered with the Ministry of Social and Family Development. Approved CDA fund uses include the following:

  • Fees for childcare centres, kindergartens, special education schools and early intervention programmes.
  • Medical expenses at healthcare institutions such as hospitals and GP clinics.
  • Premiums for MediShield Life or Medisave-approved private integrated plans.
  • Eye-related products and services at optical shops.
  • Approved healthcare items at pharmacies.

Main photo: iStock

Infographic: Paulyn Ng

This article is in collaboration with HeyBaby

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