CHANGES TO CHILD CARE SUBSIDY FOR CHILDREN WHO ARE PERMANENT RESIDENTS

The centre-based child care subsidy will be withdrawn from children who are Singapore Permanent Residents (PRs) in two steps within the next two years. From 1 January 2008, PR children aged 2 months to below 7 years will only be eligible for half the current amount of centre-based child care subsidy. From January 2009, such children will not be eligible for the subsidy. This will align the child care subsidy scheme with Government�s intention to introduce a clearer differentiation of fees paid by

Singapore

Citizens and PRs, as announced by Prime Minister Lee Hsien Loong in December 2006.

2 Currently, a centre-based child care subsidy of up to $150 per month is available to working mothers of

Singapore

Citizen and PR children aged above 18 months to below 7 years. PR infants (aged 2 months to 18 months) attending child care centres are also eligible for the child care subsidy of up to $150 per month. Those of non-working mothers are eligible for a subsidy of up to $75 per month. The subsidy rate will vary depending on whether the child attends a full-day, half-day or flexicare programme (Details of the subsidy are in the Annex). An infant care subsidy of up to $400 per month is also available for

Singapore

Citizen children aged 2 months to 18 months if their mothers are working.

3 The change in the child care subsidy for children who are PRs is being phased in over a two-year period. This is to give parents sufficient time to prepare for the increase in centre-based child care fees and to decide if they wish to apply for citizenship for their children.

4 This change will also align the eligibility criteria for centre-based child care subsidy with that of centre-based infant care subsidy, which is available only to children who are

Singapore

Citizens.

5 Members of the public may visit the Child Care Link website at: http://www.childcarelink.gov.sg or call the Family Services Infoline at 1800-258-5812 for more information on the child care subsidy scheme.

ANNEX

CENTRE-BASED CHILD CARE SUBSIDY

Child Care Subsidy

A centre-based child care subsidy of up to $150 per month is currently available to Singapore Citizen and PR children aged above 18 months to below 7 years.[1]

From 1 January 2008, children who are PRs will be eligible for half the current child care subsidy. From 1 January 2009, children who are PRs will not be eligible for child care subsidy.

Centre-Based Child Care Subsidy for Children of Working Mothers

	Current Subsidy (per month)		Revised Subsidy (per month)
	Current Subsidy (per month)		From 1 January 2008		From 1 January 2009
	Singapore Citizens	Permanent Residents	Singapore Citizens	Permanent Residents	Singapore Citizens	Permanent Residents
Full-day centre-based child care	$150	$150	$150	$75	$150	$0
Half-day centre-based child care	$75	$75	$75	$37.50	$75	$0
Flexible hours centre-based child care	Pro-rated based on hours of care	Pro-rated based on hours of care	Pro-rated based on hours of care	Pro-rated based on hours of care	Pro-rated based on hours of care	$0

Centre-Based Child Care Subsidy for Children of Non-Working Mothers

	Current Subsidy (per month)		Revised Subsidy (per month)
	Current Subsidy (per month)		From 1 January 2008		From 1 January 2009
	Singapore Citizens	Permanent Residents	Singapore Citizens	Permanent Residents	Singapore Citizens	Permanent Residents
Full-day centre-based child care	$75	$75	$75	$37.50	$75	$0
Half-day centre-based child care	$75	$75	$75	$37.50	$75	$0
Flexible hours centre-based child care	Pro-rated based on hours of care	Pro-rated based on hours of care	Pro-rated based on hours of care	Pro-rated based on hours of care	Pro-rated based on hours of care	$0

[1] Singapore Citizen infants aged 2 months to 18 months who are in centre-based infant care receive an infant care subsidy of up to $400 per month. This was introduced in 2004 and limited to Singapore Citizen infants only; PR infants aged 2 months to 18 months continued to receive the current (lower) rate of child care subsidy of up to $150 per month.