NDR 2026: Childcare leave salary caps still leave gaps for higher-income parents
The bigger government reimbursement will ease cost burden, but sectors with in-person work flag staffing strain
Singapore's government announcement to increase statutory childcare leave to up to 12 days, with employers reimbursed up to S$500 per day, aims to alleviate financial strain, particularly for higher-income and specialised staff. However, businesses warn that the caps set by the government may still fall short for these employees, especially in sectors where remote work is not possible.
Prime Minister Lawrence Wong announced the change at the National Day Rally on Aug 23. The move is seen as a meaningful reduction in labour costs for many businesses, particularly small and medium-sized enterprises, but higher-paid roles may not be fully covered. Manpower pressures are expected to intensify, particularly in sectors with shift-based roles, as companies struggle to cover for employees on leave.
Some businesses see the reimbursement as a helpful solution, but the cap could still be a challenge for specialised or higher-paid roles.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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