Easing the tax squeeze on sandwiched working mums with Budget 2026

IN 2016, Singapore introduced an S$80,000 personal income tax relief cap to maintain a progressive tax system while safeguarding fiscal sustainability.

In effect since 2018, the cap limits high-income earners with multiple dependents from claiming excessive reliefs, which could reduce tax revenue and undermine progressivity. The measure was to affect only a small proportion of taxpayers. Yet, the cap disproportionately impacted high-income working mothers – individuals contributing to the workforce while fulfilling caregiving responsibilities.

This is largely due to the Working Mother’s Child Relief (WMCR). Previously calculated as a percentage of the working mother’s earned income, it provided substantial support for individuals with several children and higher salaries. High-income working mothers are now unable to fully benefit from WMCR, limiting the incentive for them to remain in the workforce while raising children.