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Childcare Allowance to Increase in 2023: Maximum Hourly Rates and Income-Based Reimbursements Explained

The Council of Ministers approved this on Friday. The House of Representatives must still approve the proposal, but that is usually a formality.

Parents of children at day care or out-of-school care (bso) receive a supplement on part of the costs they incur. This is called the maximum hourly rate. That rate will go up next year.

The maximum hourly rate for day care will be 9.65 euros, for out-of-school care it will be 8.30 euros and for host parent care 7.24 euros. If the hourly price of childcare is higher than the maximum hourly rate, parents must pay that part in full.

Depending on your income

Suppose your child’s daycare organization charges 10.50 euros per hour, then you will receive a surcharge on 9.65 euros per hour. You have to pay the remaining 85 cents yourself. The amount of the allowance depends on the income of the parent or parents.

With an income up to and including approximately 28,000 euros, parents will be reimbursed 96 percent of the maximum hourly rate next year. That percentage gradually decreases to 33.3 percent for people who earn more than 218,000 euros per year.

The increase in the allowance is badly needed for many parents, because prices have risen sharply in the past year. Compared to last year, parents have started paying 10 to 40 percent more for childcare, due to the high energy prices, rising rents and the staff shortage.

Raised twice

At the end of last year, there was commotion because the cabinet wanted to increase the allowance by only 5.6 percent, while the cost increases were safely double. In the end, the minister decided to increase the maximum rate for 2023 twice more. All in all, the maximum rate in 2023 therefore increased by 7.32 percent.

2023-06-05 10:18:06
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