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Maximum hourly rates for childcare allowance 2022 established

The maximum hourly rates of the childcare allowance are re-established annually. These are adjusted to wage and price developments. The maximum hourly prices for 2022 will be increased by 0.51 percent as a result of the indexation.

School care

As of 1 January 2022, parents can also claim childcare allowance for out-of-school care for a maximum of 140 percent of the number of hours worked by the least working partner. That is now 70 percent. The reason for this expansion is that parents whose working hours do not overlap with times when after-school care is open (BSO times) experience the 70 percent percentage as a bottleneck. An example is parents who work in the evenings/nights or weekends and for that reason use more hours of out-of-school care. The labor market has also changed in recent years and there are more and more people whose working hours structurally deviate from the BSO times, such as self-employed people without staff.

Barrier to labor participation

The current linkage of hours worked for out-of-school care can hinder the labor participation of these parents. The government considers it desirable to remove this obstacle, so that the policy objective of the childcare allowance, namely to support and stimulate the labor participation of parents with young children, is also better achieved for parents who work in the evenings and weekends. This will happen with the extension of the link for hours worked for out-of-school care to 140 percent.

Extended entitlement to childcare allowance

In the Act on Improving the Feasibility of Allowances, the right to childcare allowance has been expanded for parents who work, are following an education, reintegration program or civic integration program and have a partner who is serving a custodial sentence of at least three months. During the legislative process in the House of Representatives, the detention period has been shortened per amendment from one year to three months. As a result, the number of families helped with this measure increases, as does the budgetary impact of the measure. An amendment has been made to deduct these extra costs (1.5 million euros) from the childcare allowance.

Elevation

The efficiency limits for the childcare allowance and the child-related budget will be increased from 48 euros to 98 euros. As a result, people do not have to repay the benefit advance that has been received too much. The number of relatively small recoveries is reduced by 380,000. This leads to lower receipts, which must be provided with financial cover.

For the childcare allowance this concerns 2.4 million euros and for the child-related budget 3.6 million euros on a structural basis. By amendment, the cover for 2021 has been arranged with a measure in the health care allowance. After this, the amendment states, the increase in the efficiency limit will be spread over the health care allowance, the rent allowance, the childcare allowance and the child-related budget. Cover for both allowances is found within the childcare allowance.

By: National Education Guide

Maximum hourly rates for childcare allowance 2022 established
Source link Maximum hourly rates for childcare allowance 2022 established

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