12/09/11

Family benefits to increase in line with index

Maternity, paternity and parental allowances, child day care subsidies, child benefits, child maintenance allowances and child support payments will increase slightly on 1 January 2012 in line with index changes.

The minimum rates of maternity, paternity and parental allowances, child benefits, and child home care and private day care allowances will be increased on 1 January 2012 in line with the national pensions index. The national pensions index will go up by 3.8%. This will lift the minimum rate of the allowances to EUR 22.96 per working day. Benefits will be raised automatically (no application is necessary) on 1 January 2012.

Child benefits to go up by €46, child home care allowances by €10

Depending on the number of eligible children, the child benefit will be increased by €46. The following rates will apply: €104.19 for the first child, €115.13 for the second child, €146.91 for the third child, €168.27 for the fourth child, and €189.63 for each additional child. The supplement for single parents will be €48.55 starting 1 January 2012.

The basic child home care allowance for children under the age of 3 will be increased to €327.46. Supplemental amounts for other children in the family who are under age 3 or under school age are provided at rates of €98.04 and €63, respectively. An additional allowance of up to €175.24 may also be available subject to family income.

The corresponding allowances for private day care will go up to €166.71 and €140.19 at the turn of the year. The partial care allowance will be raised to €93.77 per month.

Child support and child maintenance allowance to be increased by 3.57%

Child support payments and child maintenance allowances are linked to the cost-of-living index, which will rise by 3.57% on 1 January 2012. Child maintenance allowances will be paid at a rate of €147.96 per child and per month from the turn of the year. All allowances already in payment will be raised automatically. Also child support payments will be increased regardless of whether Kela is paying child maintenance allowance. Persons liable for child support must increase their child support payments by 3.57% effective 1 January 2012.

The income limits for the waiver of child support debt will also be adjusted to index. The income limit is €1,044 per month and is increased by €261 for each dependent child of the person liable for child support with the exception of children who have been awarded child support.

Daily allowances to be adjusted by a wage coefficient in 2012

Maternity, paternity and parental allowances going into payment in 2012 and based on earnings will be adjusted by a wage coefficient, which will increase by 3%. When calculated on the basis of earnings less than €53,702, maternity allowances is equal to about 90% of earnings for the first 56 working days, while parental allowances is paid at a rate equal to about 75% of earnings for the first 30 working days. A smaller percentage applies to earnings exceeding the limit. No adjustment is made in earnings-based maternity, paternity or parental allowances that have been paid since before 1 January 2012.

Kela will not be able to issue decisions on maternity or paternity allowances going into payment in 2012 until all relevant deductions affecting the allowances have been confirmed by the Ministry of Social Affairs and Health. A deduction for insurance contributions is made from earned income before the allowances are calculated. The Ministry usually confirms the deduction around the middle of December. Applicants can check their status by logging into Kela's online service with their bank user ID and password.

Additional information for customers:

Customer service number for families with children, Monday to Friday from 8 am to 6 pm, tel. 020 692 226

• Tweet
• Print