Introduction
On 23 August 2026, Prime Minister Mr Lawrence Wong (“PM Wong“) delivered the National Day Rally 2026 Speech (“NDR Speech“), outlining the Government’s priorities for supporting families, strengthening the workforce and helping businesses adapt to a changing economic landscape.
Several of the announcements have direct implications for employers. These include enhanced support for working parents through an increase in childcare leave (“CCL“) and greater Government funding of statutory child-related leave, as well as broader policy signals on foreign manpower and workforce transformation in response to demographic and technological change.
In this Update, we examine the key employment-related announcements and consider their practical implications for employers.
Support for Parents in the Workplace
Increase in CCL
One of the headline-grabbing announcements from the NDR Speech was the increase in annual CCL for working parents, as set out below:
| Age of Youngest Child | Current Scheme | New Scheme |
|---|---|---|
| Zero to six years old | Six days per parent, regardless of number of children |
|
| Seven to 12 years old | Two days per parent, regardless of number of children |
This represents a substantial increase in CCL. At its maximum, an employee with three or more primary school children will see his/her annual CCL hiked from two days to 12 days.
The increase in CCL is part of the recommendations from the Marriage and Parenthood Reset Workgroup, which was convened to address Singapore’s record low Total Fertility Rate (“TFR“) in 2025. PM Wong highlighted that these recommendations were merely a preview; more policy changes will be forthcoming, although not all recommendations may be workplace-related. Potential future changes may include further increases in parental leave – which comprises maternity leave, paternity leave, and the Shared Parental Leave (“SPL“) scheme – given PM Wong’s comment that such changes have not been ruled out. However, employers will be granted time to adapt to any such change, noting that the SPL scheme was only recently introduced in 2025.
Reimbursement of All Child-related Leave
The impact of these changes on employers has not been overlooked. In a move designed to reduce the cost burden on employers, the Government will cover the cost of all statutory child-related leave schemes up to the applicable reimbursement limit, which is inclusive of Central Provident Fund (CPF) contributions. The covered schemes include:
| Leave Scheme | Current Reimbursement | New Reimbursement |
|---|---|---|
| Government-Paid Maternity Leave of 16 weeks Reimbursement limit: S$10,000 per four weeks |
| Fully reimbursed by the Government regardless of child order |
| Government-Paid Adoption Leave of 12 weeks Reimbursement limit: S$10,000 per four weeks |
| Fully reimbursed by the Government regardless of child order |
| Government-Paid Paternity Leave of four weeks Reimbursement limit: S$2,500 per week | Fully reimbursed by the Government | Fully reimbursed by the Government |
| SPL of ten weeks for children born from 1 April 2026 onwards Reimbursement limit: S$2,500 per week | Fully reimbursed by the Government | Fully reimbursed by the Government |
| CCL of six days per year, where the employee's youngest child is below seven years of age Reimbursement limit: S$500 per day | Employers pay for the first three days at the gross rate of pay | CCL increased to eight to 12 days Fully reimbursed by the Government |
| Extended CCL of two days per year, where the employee's youngest child is between seven to 12 years old (inclusive) Reimbursement limit: S$500 per day | Fully reimbursed by the Government | CCL increased to eight to 12 days Fully reimbursed by the Government |
At present, the implementation date has yet to be announced. On 2 September 2026, Minister in the Prime Minister’s Office Indranee Rajah stated in an interview that implementation would take at least “several more months”.
Beyond legislative changes, PM Wong made a direct appeal to employers to foster supportive workplace cultures for parents. He urged employers to help employees take the leave they are entitled to, support them when they return to work and ensure that parenthood does not become a disadvantage to career progression.
With the increase in CCL and the Government’s emphasis on family-friendly workplaces, employers should therefore review manpower planning, leave administration policies and workplace practices.
Foreign Workforce Policies
Notwithstanding the renewed emphasis on family-friendly policies, PM Wong acknowledged Singapore’s demographic realities, including a continued low TFR. However, the Government will ensure that Singaporeans remain the majority by managing the size of the foreign workforce in a “careful and controlled” manner. This means a slower population growth, and therefore a slower growth in Singapore’s labour force. Despite calls from businesses to ease foreign worker policies, PM Wong noted that even a modest easing could lead to a significant increase in numbers.
In light of PM Wong’s comments, employers should not view the slower growth of the local workforce as signalling a broad easing of foreign manpower policies. Businesses will likely need to continue focusing on productivity improvements, technology adoption and workforce development to address manpower constraints.
Impact of Technological Advances on the Workforce
PM Wong acknowledged that advances in artificial intelligence and other technologies will continue to transform jobs and industries. At the same time, he sought to reassure workers that Singapore’s approach is not to resist technological change, but to help workers adapt to it. The Government reiterated its commitment to supporting affected workers through skills upgrading, career transition assistance and other measures.
For employers, this reinforces the continuing expectation that businesses invest in workforce transformation and skills development as technology adoption accelerates.
What This Means for Employers
The NDR Speech points to a workplace landscape in which employers will need to plan for tighter manpower conditions while responding and adapting to stronger expectations around family-friendly employment practices. The full Government reimbursement of statutory child-related leave, albeit up to the applicable limits, should ease some of the direct cost concerns for employers. However, the operational impact of longer and more widely used leave entitlements will still need to be managed carefully, particularly for lean teams or roles where cover is difficult to arrange.
Employers should therefore take a practical and forward-looking approach. This includes reviewing leave policies, assessing staffing and handover arrangements, and ensuring that managers are equipped to support employees who take parental leave without disadvantaging their career progression. At the same time, employers should not assume that slower local workforce growth will be met by a broad relaxation of foreign manpower controls. Productivity, skills development and thoughtful technology adoption are likely to remain central to sustaining business growth.
In short, the announcements should be viewed not only as compliance developments, but also as a spur for employers to think more deliberately about workforce resilience. Businesses that are able to combine supportive workplace practices with better planning, job redesign and technology-enabled productivity will be better placed to manage the transition and remain competitive in a more constrained labour market.
If you have any queries on the above, please reach out to our team set out on this page.
For regional Employment matters, please contact Rajah & Tann Asia’s Employment Practice Group for more information.
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