Amount and payment of private day care allowance
The private day care allowance consists of a care allowance and a care supplement. Your home municipality (locality) may also pay a municipal supplement to your child care allowance.
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 care allowance is not affected by the family's income. Care allowance is paid separately for every child eligible for the allowance. The amount of the care allowance per month is EUR 174.59 per child.
At the most, the allowance can amount to the equivalent of the day care fee for the child.
The amount of the care supplement is affected by family size and gross income. The care supplement amounts to a maximum of EUR 146.82 per month and per child. The care supplement is paid for all children under school age if the incomes of the parents do not exceed the income limits.
Care supplement is paid in full if the family's monthly income does not exceed the income limit determined by the family size. 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 2,436.66 per month|
|3||1,430.00||9.4%||EUR 2,991.87 per month|
|4 or more||1,700.00||7.9%||EUR 3,558.42 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
Between 1 August and 31 May, children are considered to participate in pre-primary education. During the period of pre-primary education, a smaller care allowance of EUR 64.24 per month and half of the care supplement is paid for children of preschool age. After the period of pre-primary education, in June and July, the full amount of the care allowance is paid for the child if the child still attends private early childhood education.
If the child only attends pre-primary education but not complementary early childhood education in addition to pre-primary education, no care allowance is paid at all.
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 provider of early childhood education. 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.
Kela sends the data on child care allowances paid out to the national incomes register within five days of the date of payment.
Taxation of private day care allowance
The private day care allowance is taxable income only for the provider of early childhood education. 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 provider of early childhood education 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.