Commentary: NDR 2026 - non-parents shouldn’t be default substitutes for parents on childcare leave
Singapore's new childcare leave scheme can push firms to design work better and accommodate other caregiving needs, says NTU's Chua Yeow Hwee. The scheme provides eight days of leave for each working parent with one Singaporean child aged 12 and below, rising to 10 and 12…
Intelligence analysis by Llama
The new childcare leave scheme can help firms design work better and accommodate other caregiving needs, but it also raises questions about how workplaces adjust when parents actually use the leave. Employers must carefully allocate who picks up the slack and ensure that there are clear handovers, shared documentation, and that critical functions do not depend entirely on one employee.
Imagine you're at work and a colleague needs to take care of their child. They might need to leave suddenly, and you might need to cover for them. This can be hard for everyone, but some workplaces are better at handling these situations than others. The new childcare leave scheme in Singapore can help workplaces design work better and accommodate other caregiving needs, but it also raises questions about how they will adjust when parents actually use the leave.
Analysis
Building Capacity to Handle Unexpected Absences
The need to take childcare leave can arise overnight. The absence may last only a day or two, but employers have much less time to respond. In contrast, parental leave around childbirth can be anticipated. Employers may know months in advance that an employee will be away, giving them time to prepare a handover, reorganise responsibilities or hire temporary help.
Temporary hiring is much less practical when it comes to childcare leave. More of the adjustment can come from capacity already inside the organisation. This can be built with cross-training. Managers should also ensure that there are clear handovers, shared documentation and that critical functions do not depend entirely on one employee. Some overlap in skills may appear costly, but it becomes valuable when somebody is away. The same capacity also helps firms manage illness and other unexpected absences.
What’s the Cost of an Absence?
A Danish study published in the Journal of Labor Economics in 2024 found that among small firms, an employee who gives birth goes on leave for 9.5 months on average. Despite this, there are no measurable effects on firm output, profits or survival. While remaining employees work more hours, they also see increases in their earnings and are more likely to remain employed.
Certainly, the Danish setting differs from Singapore's, and the study focuses on parental leave rather than childcare leave. But the underlying question for employers is the same: How easily can the missing worker's tasks be reassigned? The key is substitutability. Absences are easier to absorb when work can be reallocated to someone able to perform it.
Key points
- The new childcare leave scheme provides eight days of leave for each working parent with one Singaporean child aged 12 and below, rising to 10 and 12 days for those with two and three or more children.
- The scheme can help firms design work better and accommodate other caregiving needs, but it also raises questions about how workplaces adjust when parents actually use the leave.
- Employers must carefully allocate who picks up the slack and ensure that there are clear handovers, shared documentation, and that critical functions do not depend entirely on one employee.
- The scheme can help firms manage illness and other unexpected absences, and can also lead to increased productivity and job satisfaction for employees.
If the new childcare leave scheme is implemented well, it could lead to more flexible work arrangements and a better work-life balance for employees. This could also lead to increased productivity and job satisfaction, as employees feel more supported in their caregiving responsibilities.
However, the new childcare leave scheme could also lead to increased costs and administrative burdens for employers, particularly small and medium-sized enterprises. This could lead to job losses or reduced hiring, as employers struggle to adapt to the new scheme.
