Indranee Rajah on rationale for deferred start date of shared parental leave scheme

The decision to start the new shared parental leave scheme on Apr 1 next year was made after extensive consultation with the tripartite partners. The Government had considered implementing the scheme earlier so that more parents can benefit. However, employers had requested for a longer lead time to prepare for the change as companies need to update their administrative processes and put in place new measures to manage their employees’ extended absences. This is especially so because the new scheme involves a leave-sharing feature which requires coordination between both parents and their respective employers. Time is also needed for the Government to effect various legislative and operational changes. Minister in the Prime Minister's Office and Second Minister for Finance Indranee Rajah said this in reply to an MP’s question in Parliament on Tuesday (Sep 10). She said the deferred start date is necessary to ensure that all stakeholders involved are ready to implement the changes. Implementing the new scheme from Apr 1 next year strikes a balance between giving employers sufficient time to make the necessary adjustments in the tight labour market and allowing parents to benefit from the enhancements as soon as possible, she said. As such, the implementation date cannot be brought forward, she added.