WMCR is thus the most important tax relief in Singapore to retain women in the workforce after childbirth. This kind of program is very vital in supporting families and very essential in ensuring gender equality at the workplace.
Working Mother’s Child Relief 2024
This is designed for working mothers married, widowed, or divorced and who have children who are Singapore citizens. The relief is contingent upon the mother having taxable earned income, which means any income earned from employment, pensions, trade, or business activities.
How much WMCR a mother can claim depends on the birth order of her children. The relief is expressed in terms of a percentage of the mother’s earned income. Claims for WMCR for several children are capped at 100% of the mother’s earned income.
- Singapore GST Voucher 2024
- Singapore Infant and Child Care Subsidies
- Singapore Workfare Income Supplement
Working Mother’s Child Relief Eligibility Criteria
WMCR—Working Mother’s Child Relief—is a tax relief unique to Singapore. If you are referring to something from another country, please do specify which. All of the following conditions must be met in 2023 to claim the relief of WMCR for YA 2024.
You must be a working mother who is married, divorced, or widowed.
- You must have taxable earned income from employment or through pensions, trade or business, or through a profession or vocation.
- Your taxable earned income refers to your total earned income less allowable expenses.
- You must have maintained a child who is a Singapore Citizen as at 31 December 2023.
- The child must meet all conditions under the Qualifying Child Relief or Handicapped Child Relief.
- Claiming other reliefs on the same child You may claim WMCR even if you and/or your husband or ex-husband has already claimed Qualifying Child Relief, QCR or Handicapped Child Relief, HCR on the same child. However the total cap is $50,000 per child.
- WMCR is limited to remaining balance After the QCR/HCR claim is allowed, the WMCR shall be limited to the remaining balance.
- From YA 2025, the basis of WMCR computation is subject to change. It will no longer be expressed as a percentage of earned income but will be a flat amount based on the child’s birth or adoption date.
Calculation of Working Mother’s Child Relief (WMCR)
The following applies only to Singaporean children born, or adopted before 1 January 2024. The way of calculating WMCR for children born, or adopted after 1 January 2024 has changed to a fixed amount.
The WMCR a mother is allowed to claim is based on the order of her children and her earned income.
How WMCR is worked out:
- By order of child:
- First child: 15% of mother’s earned income.
- Second child: 20% of mother’s earned income
- Third child and subsequent children: 25% of mother’s earned income
- Total WMCR cap: Total WMCR payable for all eligible children cannot exceed 100% of the mother’s earned income.
- A mother has an earned income of S$100,000 with two children. The payment goes as follows:
- First child: 15% of S$100,000 = S$15,000
- Second child: 20% of S$100,000 = S$20,000
- Total WMCR: S$15,000 + S$20,000 = S$35,000
Though WMCR for the second child could be computed to be S$20,000, the maximum the mother may claim is S$35,000.
Changes to WMCR w.e.f. Year of Assessment 2025
With effect from the Year of Assessment 2025, there will be major changes to Working Mother’s Child Relief for children born or adopted on or after 1 January 2024.
Key Changes:
- Fixed Amounts: WMCR will no longer be based on the percentage of the mother’s earned income. It is the fixed dollar amount per child now.
- New Reliefs’ Structure as Follows:
- For the first child, S$8,000
- For the second child, S$10,000
- For the third and other subsequent children, S$12,000
Rationale behind the Changes:
- Greater Predictability: More predictable nature of financial support for lower- to middle-income households.
- Government Support: This change is part of the Government’s overall strategy to encourage marriage and parenthood.
- These changes apply only to children born, or adopted on or after 1 January 2024. For children born, or adopted before 1 January 2024, the existing percentage-based computation continues.
How to Claim Working Mother’s Child Relief WMCR?
You will need to file an income tax return electronically through the IRAS myTax Portal to claim WMCR. Step-by-Step guide:
- Log in to the IRAS myTax Portal using your Singpass or Singpass Foreign User Account.
- Submit Income Tax Return: Click “Individuals”, followed by “File Income Tax Return”. Edit Tax Form: Click on the button “Edit My Tax Form”.
- Claim WMCR: Enter “4. Deductions, Reliefs and Parenthood Tax Rebate” > click the “Child” section > Click “Update” and indicate the details of your claim.
- If you have not claimed WMCR previously, you may be asked to provide further information about your child.
- If the circumstances from last year have changed, for example your child has turned 16 years old; in case of divorce/time sharing, you have to file accordingly.