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Amount and payment of private day care allowance
The amount at which the private day care allowance is paid is linked to the extent of the child's right to early childhood education. The right to early childhood education is affected by the employment and educational situation of the parent or other guardian living with the child. Every child has the right to 20 hours of early childhood education per week.
An extended right to early childhood education applies if the child's parent or other guardian
- works full-time
- is a full-time student
- operates a business
- is self-employed
- works on a part-time basis (more than 20 hours per week including commute)
- participates in an employment promoting service, rehabilitation or comparable activity.
If the child has a special need of full-time early childhood education, for instance
- particular developmental needs or need of assistance
- family circumstances or otherwise the interests of the child
the claimant must request a statement from the municipality regarding the child's right to early childhood education and append the statement to the claim. In other situations no additional documentation is needed to accompany the claim.
Amount of private day care allowance
Kela pays private day care allowance based on the extent of the right to early childhood education. At the most, the allowance can amount to the equivalent of the day care fee for the child.
For children who have a right to more than 20 hours of early childhood education per week,
- care allowance EUR 172.25 per month per child
- up to EUR 144.85 per month and per child is paid as a care supplement.
For children who have a right to a maximum of 20 hours of early childhood education per week,
- care allowance EUR 63.38 per month per child
- the care supplement is paid at half rate.
Each year, Kela adjusts the private day care allowance with the index, which may change the amount of allowance. The customer need not do anything because of the index increase, but Kela will change the amount automatically.
The amount of the care supplement is affected by family size and gross income.
Care supplement is paid in full if the family's monthly income does not exceed the income limit determined by the family size and the child has the right to more than 20 hours of early childhood education per week. The incomes of the children for which child home care allowance or private day care allowance has been claimed are also taken into account in the family's incomes. If the income limit is exceeded, a deduction is made to the full amount of the care supplement according to the table below. Care supplement is not paid, if the family's income exceeds the maximum income limit determined by the family size. The care allowance and the municipal supplement are not considered as income when calculating the care supplement. However, the partial and the flexible care allowances are considered as income.
|Family size (number of people)*||Gross income, full care supplement is paid, maximum EUR per month||Reduction rate||Gross income, no care supplement is paid, maximum EUR per month|
|2||1,160.00||11.5%||EUR 2,419.53 per month|
|3||1,430.00||9.4%||EUR 2,970.91 per month|
|4 or more||1,700.00||7.9%||EUR 3,533.49 per month|
* Family size includes up to 4 people: 2 adults and up to 2 children under school age.
Children of preschool age or in extended compulsory education
The care allowance is paid to a smaller amount if the child has the right to more than 20 hours of early childhood education per week. The care allowance is not paid if the child only participates in pre-primary education or has the right to a maximum of 20 hours of early childhood education per week.
Between 1 August and 31 May, children are considered to participate in pre-primary education as referred to in the Basic Education Act. A higher rate of care allowance can be paid for the months of June and July if a child has the right to more than 20 hours of early childhood education per week. A smaller care allowance is paid for children who have the right to a maximum of 20 hours of early childhood education per week.
For children who are in extended compulsory education, the care allowance is paid on the same basis as for children who attend preschool.
Payment of the municipal supplement
A municipal supplement may be available to the private day care allowance. The amount of and eligibility criteria for the municipal supplement vary depending on the municipality. In some municipalities it can be a substantial addition to the private day care allowance. Kela pays the municipal supplement in connection with the private day care allowance only if Kela and the municipality have agreed on such a procedure. Contact your local municipal authorities if you have questions about the municipal supplement.
Payment of private day care allowance
Kela always pays the allowance to the day care provider. The allowance is paid in arrears on the last business day of the month. The decision shows the first payment date of the allowance. The decision is mailed to your home address and can also be checked online.
Private day care allowance is not paid for periods shorter than one month. The one-month minimum requirement can be fulfilled also by adding up the periods for which child care allowances are paid to the mother or the father.
If private day care allowance and other child care allowances have been awarded for a total of at least one month, the private day care allowance may also be awarded for a shorter period than one month, however.
Taxation of private day care allowance
The private day care allowance is taxable income only for the day care provider. The family that claims private day care allowance does not have to pay taxes on the allowance.
Kela pays the private day care allowance directly to the day care provider and withholds preliminary taxes on the allowance before payment (except for day care providers who have been entered in the tax withholding register). Further information on payment and taxation of the private day care allowance is available (in Finnish) at Yksityisen päivähoidon tuottajat.