It’s good to have babies – enjoying the cute little ones, having family life, experiencing unconditional love, passing down your genes…
In Singapore, you even get financially rewarded for having babies. As the country is facing a dearth of babies, the government encourages procreation by giving baby bonuses and parenthood tax rebates.
If you have 1 baby, you’ll be given a cash bonus of $3,000, paid out in 4 installments.
It gets better. For your 2nd baby, you’ll be given another bonus of the same amount, and you and your spouse get to share a $10,000 tax rebate. If both of your taxes are assessed to be $2k a year, you don’t have to pay any tax for the next 5 years! To top it off, you get to open a Child Development Account for your baby (essentially a savings account), and the government will match whatever amount you deposit, up to $6,000. You put in $6,000; the government puts in $6,000.
More to come. For your 3rd baby, the numbers are doubled – $6,000 cash bonus, $20,000 additional tax rebate, and $12,000 matching deposit.
Your 4th child also gets $6,000 bonus and $12,000 matching deposit. Tax rebate is
capped at an additional $20,000, on top of the $10,000 + $20,000 already given for your 2nd & 3rd children.
To summarize, if you have:
- 1 child, total monetary rewards from government = $3k
- 2 children, cumulative total = $3k + $3k + $10k + $6k = $22k
- 3 children, cumulative total = $22k + $6k + $20k + $12k = $60k
- 4 children, cumulative total = $60k + $6k + $20k + $12k = $98k
Wow, this is good money. So why is the birth rate still shamefully low?