Top three tax reliefs just for working mums
Source: FreePik
Working mothers pull in two shifts. After their official work day is over, they start a second shift at home helping children with their homework and managing the household with their spouses.
To help working mothers remain in the workforce even after they have children, there is a host of tax reliefs which lighten their load and indirectly, put more cash in mums’ pockets. We highlight the top three money-saving reliefs just for working mums:
Working Mother’s Child Relief 1
The Working Mother’s Child (WMCR) relief is a gesture to recognise working mums’ hard work in looking after their children. For this year, eligible working mothers can claim a percentage tax relief based on the child order.
However, starting next Year of Assessment 2025, the WMCR will be changed from a percentage of an eligible working mother’s annual earned income to a fixed dollar tax relief.
| For Year of Assessment 2024 | With effect from Year of Assessment 2025 | |
|---|---|---|
| Child Order | Qualifying Singaporean child born/adopted before 1 Jan 2024 Working Mother’s Child Relief amount | Qualifying Singaporean child born/adopted on or after 1 Jan 2024 Working Mother’s Child Relief amount |
| 1st | 15% of mother’s earned income | $8,000 |
| 2nd | 20% of mother’s earned income | $10,000 |
| 3rd and beyond | 25% of mother’s earned income | $12,000 |
Foreign Domestic Worker Levy Relief 2
As many working mothers hire Foreign Domestic Workers (FDW) to manage the household and look after their children, the Foreign Domestic Worker Levy (FDWL) Relief helps to cut the tax bill. Even if the husband paid for the levy, working mothers can claim twice the levy paid in the previous year on one FDL.
From Year of Assessment 2025, the FDWL Relief will lapse. However, those caring for dependents, including working mothers, will continue to enjoy a concessionary levy of $60 per month for hiring foreign domestic worker. Visit the Ministry of Manpower’s website for more details.
Grandparent Caregiver Relief
In Asian societies, grandparents are invaluable in looking after their grandchildren. Working mothers who sought help from their parents, grandparents, parents-in-law or grandparents-in-law (including those of ex-spouses) to take care of their children can claim $3,000 in Grandparent Caregiver Relief.
Better yet, from the Year of Assessment 2025, the Grandparent Caregiver Relief can be tapped even if the caregivers earn $8,000 a year. This is an increase from the current $4,000 income cap.
Find out more tax-saving tips for working mums and also families here.
1 As part of the review of the Government’s support for Marriage and Parenthood, (PDF, 352KB) with effect from Year of Assessment 2025, the WMCR will be changed from a percentage of an eligible working mother’s annual earned income to a fixed dollar tax relief
2 As part of the review of the Government’s support for Marriage and Parenthood (PDF, 352KB), FDWL Relief will lapse for all taxpayers from Year of Assessment 2025