Raising the Bar for Raising Kids: The Child Development Co-Savings (Amendment) Act Explained

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In this Explainer, find out...

1. What drove the changes to the Child Development Co-Savings Act in 2024?

2. What are the key changes to the Act, and who stands to benefit from them

3. What are the potential implementation challenges?

Introduction

Singapore has long positioned itself as a country that prioritises family and parenthood. Since the early 2000s, the Government has backed this stance with range of policy instruments aimed at making it easier for Singaporeans to have and raise children. Chief among them is the Child Development Co-Savings Act (CDCA) 2001. This Act has since served as the foundational policy for parental benefits, which includes perks like cash gifts, subsidies and additional

leave.

This Policy Explainer will explain the evolving context behind the CDCA and detail the most recent amendments passed in November 2024. It seeks to examine how these changes aim to address the persistent gap between policy design and real-world family experiences, and evaluate their likely impact on

Singapore’s broader demographic and socio-economic

landscape.

Why Amend The Child Development Co-Savings Act?

Past Efforts

Over the past two decades, Singapore has introduced a broad range of policies to support couples in having and raising children. The central aim of this umbrella of policies is to boost Singapore’s fertility rate. These include the Baby Bonus Scheme, which provides cash gifts and co-saving incentives and substantial subsidies for infant and child care services. In addition, the Government has expanded maternity and paternity leave entitlements.

Fertility Crisis?

Despite these efforts, the core problem the policy seeks to address has not only persisted but worsened. Fertility rates in Singapore have remained well below the replacement level of 2.1 for decades, and recent figures show no signs of improvement. The total fertility rate (TFR) remained at a historic low of 0.97 in 2024.

Although these figures were only officially released in early 2025 (after the most recent legislative changes in 2024), they do reflect a continuing demographic trajectory that policymakers have been acutely aware of for some time.

From Pro-Family Rhetoric to Structural Rethinking

As the Government continues to view family-building as essential to long-term national continuity, what has changed is not the Government’s stance on fertility bu its approach to what enabling parenthood should look like.

The reality is that while pro-family messaging and financial incentives have remained consistent, they have often struggled to keep pace with evolving social norms, labour market structures, and gender expectations. Cultural perceptions, particularly of fatherhood, have shifted in recent years, especially among younger Singaporeans who increasingly value shared parenting responsibilities.

While earlier iterations of the Act focused on affordability, this latest amendment signals a broader ambition: to make parenthood more compatible with how Singaporeans live and work today. The changes to the CDCA will be outlined in the next section below.

How Is The Child Development Co-Savings Act Changing?

What were the Original Terms of the Child Development Co-Savings Act (2001)?

The CDCA first came into effect in 2001. Coming at a time when fertility rates in Singapore had declined and stagnated far below the replacement rate, it aimed to encourage married women to have more children.

To assist families with the cost of raising a child, the original CDCA created a co-savings scheme, known as the Child Development Account (CDA). Through

this, the Government matched contributions made by any parent to their child’s bank account. Money in this account can be used for a variety of purposes that support the child’s development, including childcare fees, medical expenses, and health insurance premiums.

The CDCA also outlined maternity leave laws, granting women who gave birth to their third (or more) child a total of 16 weeks of maternity leave before and after giving birth, provided they were married and the child was a Singapore citizen. Significantly, the Act also entitled employers whose employees went on maternity leave, as well as self-employed women, to claim reimbursement from

the Government.

Over the years, this Act has gradually been amended. In 2017, the Government-Paid Maternity Leave (GPML) requirement was extended to unmarried mothers and allowed fathers to claim two weeks of Government-Paid Paternity Leave (GPPL). The 2017 amendments also extended parental leave entitlements to adoptive parents.

In 2021, the CDCA was amended to include parents working short-term contract jobs, ensuring that more working parents had access to parental leave. In 2023, the number of unpaid infant care leave days parents were entitled to increased from six to 12.

What were the Amendments to the Child Development Co-Savings Act in 2024?

The amendments to the CDCA in 2024 represent the Government’s continued effort to encourage Singaporean families to have more babies by providing support to parents. In 2024, two main changes were made to the Act:

1. Increasing the amount of GPPL and Shared Parental Leave (SPL) granted to employees, and;

2. Increasing employment protections against dismissal for employees on parental leave.

The first change made the additional two weeks of GPPL compulsory, granting new fathers a total of four weeks of mandatory GPPL up from two. This amendment also made changes to the SPL system, allowing both parents to eventually share a cumulative ten weeks of SPL in 2026. Previously, new mothers were allowed to share four weeks out of their 16 week GPML with the fathers of their children The second change strengthened employment protections for employees on parental leave. Previously, protections against dismissal while on parental leave were only granted to new mothers. However, from 2025, this protection will be extended to new fathers and adoptive parents.

Evaluating The Child Development Co-Savings Act Changing

Policy Challenges

Operational Disruption for Employers

While the policy changes are well-intentioned, they can create logistical and operational challenges, especially for small and medium-sized enterprises (SMEs) with limited manpower.

Longer and more flexible leave arrangements mean that employers may need to

reorganise teams, adjust project timelines, or hire temporary replacements—all of which require time, planning, and financial resources. These disruptions can be particularly pronounced during peak periods or in roles that require specialised skills, where finding a substitute may be difficult.

To mitigate these impacts, the Ministry of Social and Family Development (MSF) offers support through the Government-Paid Leave (GPL) Portal. The portal includes guidelines, planning templates, and resources to help employers implement leave policies more smoothly and effectively.

Workplace Culture and Uptake

Another concern is that legal entitlements alone may not be sufficient to ensure widespread uptake of parental leave.

In many workplaces, there remains a lingering perception that taking extended leave—particularly for fathers—could reflect poorly on an employee’s commitment or ambition. This perception is often reinforced by unsupportive supervisors or peers, leading to the underuse of available benefits.

To fully realise the intent of the new policies, employers must work to shift workplace culture by promoting inclusivity, normalising caregiving responsibilities for all genders, and actively encouraging employees to make use of their leave entitlements. Leadership plays a critical role here: when senior management models supportive behavior and openly supports parental leave, it sends a strong message that career advancement is not at odds with caregiving responsibilities.

Policy Benefits

Talent Attraction and Retention

Family-friendly policies, particularly those that support parental responsibilities, have become a key differentiator for employers in today’s workforce. Companies that actively implement and promote such initiatives are more likely to attract and retain top talent within Singapore, especially among younger workers who value work-life balance and progressive workplace practices.

In addition, these policies help retain existing employees by reducing stress and improving job satisfaction. Employees who feel supported in their

personal lives tend to show greater loyalty and engagement at work. This translates into higher productivity, reduced turnover, and lower recruitment costs. This is especially relevant in competitive industries or sectors experiencing talent shortages.

Shifting Social Norms and Gender Equality

The expanded leave provisions—particularly the doubling of government-paid paternity leave from two to four weeks and the introduction of shared parental leave—represent a deliberate move towards normalising shared caregiving responsibilities. These policies aim to challenge long-standing stereotypes that caregiving is primarily a mother’s role, and instead promote gender parity in both the household and workplace.

By enabling fathers to take a more active role in early child-rearing, the reforms support more equitable partnerships at home and reduce the disproportionate burden placed on women, which often impacts their career progression. Over time, such policies can contribute to more equal outcomes, like narrowing the gender pay gap and fostering inclusive workplace cultures.

Strengthened Legal Framework

The policy amendments reflect the Government’s broader commitment to supporting working families. As highlighted by analysts, the Child Development Co-Savings (Amendment) Act enhances statutory protections for working parents.

The new legal framework not only improves access to leave but also ensures that employers meet minimum standards in supporting their employees, displaying the Government’s commitment to provide stronger caregiving support to parents of infants. This move helps standardise practices across industries, strengthens accountability, and creates a more inclusive and resilient employment landscape.

Conclusion

The 2024 amendments to the CDCA reflect the need for greater support from the Government for working parents. Through longer GPL allowance for both

mothers and fathers, would-be Singaporean parents may feel they are in a better position to have and raise a child. In the long-term this could translate to a rise in Singapore’s declining TFR.

However, for these changes to truly make an impact, cooperation on the part of businesses is also necessary. Without flexibility from employers and the removal of the stigma around taking parental leave, little is likely to change.

Nevertheless, these amendments mark an important step in making Singapore a better place for would-be parents to start a family. With support from both the public and private sector, Singapore can start raising the bar when it comes to raising kids.

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This Policy Explainer was written by members of MAJU. MAJU is a ground-up, fully youth-led organisation dedicated to empowering Singaporean youths in policy discourse and co-creation.

By promoting constructive dialogue and serving as a bridge between youths and the Government, we hope to drive the keMAJUan (progress!) of Singapore.

The citations to our Policy Explainers can be found in the PDF appended to this webpage.

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