Other Author Maria Chang, senior associate of PKWN
Singapore is once again taking significant steps towards supporting families with the adoption of the new, extended parental leave entitlements announced by Prime Minister Lawrence Wong in his National Day speech on 18 August 2024.
Set to take effect from 1 April 2025, this reinforcement of support is designed to help parents spend more time with their newborn babies – but will also require businesses to adjust.
A. What is Changing?
The major updates to parental leave are:
- Extended Mandatory 4-weeks Paternity Leave: Previously, in last year's 2023 Budget, the Government doubled the amount of government-paid paternity leave from 2 to 4 weeks, but the additional 2 weeks was on a voluntary basis. However, from 1 April 2025, the additional 2 weeks becomes mandatory for all eligible working fathers of Singaporean children. This will allow fathers more time to connect with their newborn babies during those critical early days.
- Increased Shared Parental Leave: A new shared
parental leave scheme will be introduced allowing parents to share
an additional 10 weeks of paid leave. This extra
leave can be divided between both parents, without reducing the
maternity leave entitlements. It will be rolled out in two phases:
- Phase 1: From 1 April 2025, parents will be entitled to 6 weeks of shared parental leave.
- Phase 2: From 1 April 2026, this will increase to 10 weeks of shared parental leave.
- Overall Paid Leave: The total parental leave available to families will increase to 30 weeks, up from the existing 20 weeks. This extended leave period ensures that parents have ample time to focus on their families.
B. Who is Eligible?
The eligibility for paternity leave and shared parental leave are as follows:
- Paternity Leave: Working fathers are entitled
to Government-Paid Paternity Leave (GPPL) for all births if:
- His child is a Singapore citizen.
- The father is or had been lawfully married to the child's mother between conception and birth.
- He had served his employer for a continuous period of at least 3 months before the birth of their child.
- If self-employed, he was engaged in his work for a continuous period of at least 3 months before the birth of his child, and lost income during the paternity leave period.
- Shared Parental Leave: Working fathers are
entitled to shared parental leave if:
- His child is a Singapore citizen.
- The child's mother qualifies for Government-Paid Maternity Leave (GPML).
- The father is lawfully married to the child's mother.
C. Is there a Notice Period?
Yes, the Government will introduce a new minimum notice period of 4 weeks, which employees must serve before they can consume any parental leave schemes. This will allow employers sufficient time to mitigate any operational challenges that may arise from the leave.
D. Important Implications for Employers
While these changes are beneficial for parents, they present new challenge for employers:
- Operational Adjustments: With extended leave periods, companies will need to plan for the absence of key staff members. This might involve hiring temporary replacements or adjusting workloads among existing employees, which could be particularly challenging in industries requiring specialised skills.
- Financial Impact: Even though the government will cover the cost of the additional paternity leave, employers might still face indirect costs, such as training temporary staff or managing workflow disruptions. Small businesses with limited resources may find this especially burdensome.
- Opportunity to Enhance Workplace Culture: These changes also present a chance for businesses to create a more family-friendly work environment. Supporting employees in balancing work and family life can lead to increased job satisfaction, better retention rates, and a stronger appeal to top talent.
- Phased Implementation: The phased implementation gives businesses time to adjust. Employers should start by updating their policies, communicating with their employees, and preparing for the transition. Utilizing resources provided by the government and seeking advice from industry bodies can help in managing these changes effectively.
Singapore's new parental leave policies represent a significant shift in the support offered to families. While these changes are undoubtedly positive for parents, they will require businesses to adapt. With careful planning and proactive communication, companies can navigate these new requirements successfully, turning potential challenges into opportunities to foster a more supportive and attractive work environment.
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