Singapore has unveiled a refreshed and more generous Baby Bonus Scheme in 2025, signaling a major step toward supporting families, especially those welcoming their third or subsequent child. With the country’s birth rate hitting a historic low in 2023, these new incentives aim to alleviate the financial strain of raising children and encourage larger families.
Bigger Baby Bonus Cash Gift for All
From February 18, 2025, all eligible parents will receive an enhanced Baby Bonus Cash Gift. The government has increased the payout by $3,000 across the board. Parents of the first and second child will now receive $11,000, while those with a third or later child will receive $13,000.
Notably, the payout schedule has also changed to better align with a child’s development needs. Instead of large lump sums, parents will now receive staggered payments every six months until the child turns six and a half years old. This steady stream of support ensures that essential needs like early education, childcare, and health expenses are consistently met.
Doubling the CDA First Step Grant
One of the most impactful changes is the doubling of the Child Development Account (CDA) First Step Grant for third and subsequent children. Families with a third child or more will automatically receive $10,000 in their CDA twice the previous amount.
This grant can be used for approved educational and healthcare expenses, such as preschool fees, doctor’s visits, or MediSave-approved vaccinations. The increased grant reflects the government’s recognition of the growing costs associated with raising larger families.
New: Large Family MediSave Grant
Another new feature introduced in Budget 2025 is the Large Family MediSave Grant. Mothers who give birth to a third or subsequent child will receive $5,000 in their MediSave account. This grant can be used for maternity expenses or any other approved healthcare costs within the family.
It’s a move that not only helps with immediate medical expenses but also bolsters the family’s overall health preparedness.
Annual LifeSG Credits to Ease Everyday Costs
To further ease the financial burden on families, the government will issue $1,000 in annual LifeSG credits for each third or subsequent child until the age of six. These credits can be used for daily essentials at participating merchants that accept PayNow UEN or NETS QR payments.
For parents, this means additional help with groceries, baby products, and other necessities essentially providing another lifeline for managing everyday expenses in a high-cost living environment.
One-Off and Educational Top-Ups
In addition to the Baby Bonus changes, the government has also announced a suite of one-time top-ups:
- Every Singaporean child aged 0 to 12 in 2025 will receive a $500 Child LifeSG credit, disbursed by July.
- Teenagers aged 13 to 16 will get a $500 boost to their Edusave accounts, while those aged 17 to 20 will see the same amount added to their Post-Secondary Education Accounts.
These top-ups are designed to promote long-term educational savings and help families plan for their children’s future learning journey.
A Bold Step to Reverse Falling Birth Rates
Singapore’s total fertility rate dropped to a record low of 0.97 in 2023. The government’s revamped Baby Bonus Scheme is part of a broader effort to reverse this trend by lowering the economic barriers to starting and growing a family.
The shift in focus toward sustained, long-term support rather than one-time payouts reflects a deeper understanding of what families truly need. These new initiatives are expected to benefit over 80,000 families annually, making a meaningful difference in their everyday lives.
Final Thoughts
The 2025 update to the Baby Bonus Scheme is more than a cash incentive it’s a holistic support system for families navigating the challenges of parenthood. With increased grants, healthcare savings, and ongoing credits, the scheme represents a strong commitment to making Singapore a more family-friendly nation.