From YA 2025 onwards, Singapore’s Working Mother’s Child Relief (WMCR) will undergo major changes. If you are a working mother, understanding these updates is crucial for maximising your tax relief and planning your finances effectively.
📌 What is Working Mother’s Child Relief (WMCR)?
The WMCR is a tax relief designed to encourage married women to remain in the workforce after having children. It rewards working mothers with a percentage-based relief on their earned income, depending on the number of children they have.
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🆕 Key Changes to WMCR After 2024
- Shift from Percentage-Based to Fixed Amount: WMCR will no longer be a percentage of earned income. Instead, each qualifying child will have a fixed relief amount.
- Higher Support for Lower-Income Mothers: This ensures that mothers with lower earnings can still enjoy substantial tax benefits.
- Child Order-Specific Relief: The fixed relief amount will vary depending on whether the child is the first, second, or third and beyond.
- Enhanced Cap on Total Relief: The personal income tax relief cap remains at S$80,000, but WMCR changes may impact how much you can claim alongside other reliefs.
💰 New WMCR Relief Amounts from YA 2025
| Child Order | YA 2024 & Before | YA 2025 Onwards |
|---|---|---|
| 1st Child | 15% of earned income | S$8,000 |
| 2nd Child | 20% of earned income | S$10,000 |
| 3rd Child & Beyond | 25% of earned income | S$12,000 |
⚖️ Impact of the New Rules
Under the old system, high-income mothers benefited more due to the percentage-based calculation. The new fixed-amount system aims to make WMCR more equitable, ensuring that all working mothers, regardless of income level, can claim significant relief.
✅ Claiming WMCR – Eligibility Criteria
- You must be a female taxpayer who is a Singapore tax resident.
- You must have earned income from employment, trade, business, profession, or vocation in the year before YA.
- You must be married, divorced, or widowed in the year before YA.
- Your child must be a Singapore Citizen at the time of birth or in the year preceding YA.
💡 Tax Planning Tips for WMCR
- Combine with Other Reliefs: Claim Parenthood Tax Rebate (PTR) and Qualifying Child Relief (QCR) for maximum benefits.
- Track the S$80,000 Relief Cap: Ensure your total personal reliefs do not exceed the cap to avoid losing part of your WMCR.
- Plan Child Order Claims: Decide strategically whether the mother or father should claim QCR/HCR to maximise WMCR.
- Stay Updated: Changes to relief amounts and eligibility may be introduced in future budgets.
📄 How to Claim WMCR
- Log in to myTax Portal during your annual tax filing period.
- Enter child details in the “Reliefs” section.
- Ensure that your claim is supported by required documents if IRAS requests verification.
🔍 Final Takeaway
The post-2024 WMCR changes are designed to make the system fairer for working mothers in Singapore. Whether you benefit more or less will depend on your income and family size, so be sure to review your situation before YA 2025 filing season.
