Amount and payment of parental allowances
The maternity, special maternity, paternity and parental allowances are all calculated in the same way. You can estimate the amount of parental allowances that start in 2020 by using the calculator. To see how long you can get the allowance and when your leave will begin, use this calculator.
The determination of the allowance will change starting from 1 January 2020
If your right to an allowance for parents starts on 1 January 2020 or later, the allowance for parents is determined on the basis of an annual income. The annual income is calculated for a reference period of 12 calendar months prior to the calendar month that precedes the start of the entitlement to allowance for parents.
Determination of the allowance until 31 December 2019
The allowances are usually calculated on the basis of earned income for the previous year, as confirmed for tax purposes. You can estimate the amount of parental allowances that start in 2019 by using the calculator. If you do not have earned income, you get the allowance at the minimum rate. The allowances can also be calculated in the following three ways:
- on the basis of some other benefit you received earlier, provided that you have been a student, in rehabilitation, or unemployed, and also provided that the allowance, calculated this way, would be larger than if it were calculated on the basis of your earned income.
- on the basis of the same earnings as an immediately preceding allowance if the expected due date of the next child occurs before the second-youngest sibling is 3 years old.
- on the basis of your earned income for the 6 months preceding the allowance if your income is at least 20% higher than the income confirmed for tax purposes.
Maternity, paternity and parental allowances are affected by your circumstances and your income. The same formula is used to calculate all of the allowances.
Maternity, paternity and parental allowances are paid for working days. Working days are Monday to Saturday, with the exception of official holidays.
If you have had no income from work, you will be paid the allowance at a minimum rate.
- The minimum rate is €27.86 per working day.
|Annual earnings (€): gross earnings minus deductions||Maternity, paternity or parental allowance, € per working day (before taxes)|
Earnings include salaries, income under the Self-Employed Persons' and Farmers' Pensions Acts, and income from self-employment. Such income as dividends are usually not considered earnings.
Generally, the rates of maternity, paternity and parental allowances are calculated on the basis of earnings confirmed for tax purposes, and not on the basis of your current income. For example, an allowance beginning on 31 December 2018 would have been calculated on the basis of 2016 income as confirmed for tax purposes. An allowance beginning on 1 January 2019 would have been calculated on the basis of income for 2017. When completing a claim via Kela's online customer service system, you can see your income as confirmed for tax purposes.
Increased rate of payment for maternity allowance
Maternity allowance is paid at an increased rate of up to 90% of earnings for the first 56 days of payment. The increased rate of payment is only available to those whose allowance is based on earnings or insurable income under the Self-Employed Persons' Pensions (YEL) Act or the Farmers' Pensions (MYEL) Act. Calculation formulas for maternity, paternity and parental allowances
All allowances paid for one and the same child are calculated on the basis of the same income, such as when a person first receives maternity or paternity allowance and later begins to receive parental allowance. For example, when a father receives paternity allowance in several different periods, the paternity allowance paid during the latter periods is calculated on the basis of the same income as the initial allowance even if the father's income increases or decreases in the meantime.
If you have a child before your second-youngest child is 3 years old, you can get maternity, paternity and parental allowance on the basis of the same work income as was used with the second-youngest child. The requirement for this is that the expected due date precedes the second-youngest child's 3rd birthday. If the earlier allowance was calculated on the basis of a preceding benefit and not on the basis of earnings, this method of calculation cannot be used.
Similarly, adoptive parents can get a maternity, paternity or parental allowance on the basis of a preceding allowance if they take an adopted child into their care before three years have passed since an older adopted child was placed in their care.
This rule can be used whenever a child is born before an older sibling has reached the age of 3 years. For example, if parents have their first child in 2008, their second in 2011 and their third in 2014, the allowance for all three children can be calculated on the basis of the allowance paid for the first child.
When earnings used to calculate a previous maternity, paternity or parental allowance are used to determine a new allowance, the earnings are adjusted by wage coefficients for the year in which the entitlement for the allowance begins and the preceding year. This may mean a change in the rate of the allowance, even if the earnings used as the basis for calculating the allowances are the same.
When claiming a maternity, paternity or parental allowance, you do not need to tell Kela that you want it to be paid on the basis of your earlier income. This information will be available to Kela automatically when dealing with your claim.
Maternity and special maternity allowances are paid in arrears every 25 working days. The initial maternity allowance instalment, however, is for 30 days.
Parental allowance is paid in arrears every 25 working days. However, the final instalment of the parental allowance is paid after the allowance period is over.
Paternity allowance is paid in arrears for one or several paternity leave periods at a time.
Visit Kela's online customer service to check the next payment date. Log in using your online banking user ID and password or a mobile certificate.