As a soon-to-be mother, I’m thrilled about the shared parental leave announced during the National Day Rally (NDR 2024: 10 extra weeks of shared parental leave; total of 30 weeks for parents by April 2026, Aug 18).

It’s a great step towards a more family-friendly Singapore, allowing both parents to share in the joys and responsibilities of raising children.

However, this change also brings challenges, particularly for women-led or female-majority businesses. Sectors like child therapy, kindergartens and spas, which are predominantly staffed by women, could face financial difficulties if several employees take maternity leave simultaneously.

At my paediatric therapy start-up, we’ve seen significant growth in our small team of therapists over the past two years. We’ve celebrated six pregnancies, including mine, within our team of 15. While we’re happy for our staff, managing cash flow during these periods, especially with rising costs, is challenging for a smaller, newer business like ours.

Currently, employers must pay for maternity leave upfront and wait four months for government reimbursement. Extending shared parental leave could further strain small businesses financially. These cash-flow issues also hinder hiring part-time staff to cover absences, complicating operations and service delivery.

For larger companies with substantial cash reserves, this might not be a significant issue. However, for small, women-led businesses, it can be a considerable burden. We want our employees on maternity leave to focus on their well-being and their families without worrying about financial matters.

I suggest that the Ministry of Manpower consider direct reimbursement to employees instead of requiring employers to pay upfront. This change could help ease the financial burden on small businesses.

Countries like Sweden and Australia have successfully implemented similar systems, where parental leave benefits are paid directly to parents, ensuring that small businesses aren’t financially strained.

Jewel Yi