The Baby Bonus Scheme, introduced by the Singaporean government, has long been a crucial financial support system for parents raising children. In 2025, the scheme has undergone significant improvements to further alleviate the financial burdens of parenthood. This article provides an in-depth look at the latest updates, including eligibility requirements, benefits, and the application process.
An Overview of the Baby Bonus Scheme 2025
The Baby Bonus Scheme consists of two primary components: the Baby Bonus Cash Gift (BBCG) and the Child Development Account (CDA). The BBCG offers a structured payout system designed to assist parents with child-rearing expenses throughout the early years. Meanwhile, the CDA is a special savings account in which the government matches parental contributions up to a specified limit. Funds in the CDA can be used exclusively for education and healthcare expenses.
Eligibility Criteria
To qualify for the Baby Bonus Scheme in 2025, certain criteria must be met. Firstly, the child must be a Singaporean citizen, either by birth or granted citizenship within the first 12 years of life. Secondly, for a child to receive the Baby Bonus Cash Gift, the parents must be legally married. However, all Singaporean children, regardless of their parents’ marital status, are eligible for the CDA benefits. Unwed parents will not receive the cash gift but may still benefit from the CDA support.
Breakdown of Benefits
Under the revised scheme, parents of the first and second child will receive a total of $11,000. The payout schedule is as follows: $3,000 at birth, $1,500 at 6 months, $1,500 at 12 months, $1,000 at 18 months, and $400 every six months until the child reaches 6.5 years old. For the third and subsequent children, the cash gift increases to $13,000. The payout structure is slightly different: $4,000 at birth, $2,000 at 6 months, $2,000 at 12 months, $1,000 at 18 months, and $400 every six months until 6.5 years old.
These payments aim to ease the financial strain on parents during the critical early childhood years.
Child Development Account (CDA) Benefits
The CDA offers two types of benefits: the First Step Grant and Government Co-Matching.
For the first child, the First Step Grant is $5,000, with a co-matching limit of $4,000. For the second child, the grant remains at $5,000, but the co-matching limit increases to $7,000. For the third and fourth children, the First Step Grant increases to $10,000, with a co-matching cap of $9,000. For the fifth child and beyond, the grant remains $10,000, while the co-matching limit rises to $15,000.
This increase is part of the Large Families Scheme, designed to provide extra financial assistance to families with three or more children. The funds in the CDA can be used for a wide range of expenses, including preschool fees, medical costs, MediShield Life premiums, assistive technology devices, eye care, and selected pharmacy products.
Application Process
Starting July 1, 2024, parents can apply for the Baby Bonus Scheme through the LifeSG platform. Upon enrollment, a Child Savings Account will be automatically opened, and the Baby Bonus Cash Gift will be credited within seven to ten working days after birth registration or scheme enrollment. Parents will receive notifications with instructions to activate the CDA with authorized banks such as DBS/POSB, OCBC, or UOB. The CDA activation process typically takes one working day.
The enhanced Baby Bonus Scheme for 2025 reaffirms the government’s commitment to supporting families and encouraging a higher birth rate. Whether you are a new parent or planning to expand your family, understanding the eligibility requirements and benefits of the scheme can greatly aid in financial planning. With increased financial support, parents can focus on raising their children with greater peace of mind and stability.
