Singapore's birth rate has been an ongoing concern, with the fertility rate consistently falling way below the replacement level of 2.1. In response, the government has introduced new incentives, including enhanced maternity and paternity benefits, announced at the National Day Rally on August 18, 2024.
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These measures aim to encourage couples to have more children, but will they be enough to reverse the declining trend?
The New Maternity and Paternity Benefits
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During the National Day Rally, Prime Minister Lawrence Wong announced significant changes to parental leave policies. Parents of newborns will receive an additional 10 weeks of shared leave, bringing the total paid parental leave to 7.5 months. This new shared parental leave scheme will replace the current one, which allows mothers to share up to four weeks of their 16-week maternity leave with their husbands.
The scheme will be implemented in two phases to allow employers time to adjust. Parents of children born from April 1, 2025, will be entitled to six weeks of shared parental leave. Those whose children are born from April 1, 2026, will be entitled to the full 10 weeks of parental leave. By default, this leave will be equally distributed between both parents, though they can reallocate the leave based on their caregiving needs.
In addition, paternity leave will be increased from two weeks to four weeks of government-paid leave, providing new fathers with more time to support their families.
The Challenges Ahead
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While these new benefits represent a significant step toward supporting families, the impact on Singapore’s birth rate remains uncertain. The declining birth rate is influenced by various factors, including high living costs, delayed house ownerships, career priorities, and societal shifts toward smaller families and delayed marriages.
The current scheme, which allows mothers to share their leave with fathers, has had a low take-up rate, with only 6% of eligible working fathers participating. This suggests that cultural and workplace attitudes may also need to shift to fully realize the potential of these enhanced benefits.
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The newly announced maternity and paternity benefits, including the phased introduction of up to 10 weeks of shared leave and increased paternity leave, are part of the Singaporean government’s efforts to provide stronger caregiving support for parents.
While these changes are a positive development, they will need to be further complemented by broader societal and economic policies to effectively address the underlying challenges faced by the child-bearing demographics contributing to the country’s low birth rate.
