The Childcare Act regulates the government contribution including the employer's contribution to childcare costs for parents who work or are studying.
If your child is cared for by a childminder who is registered in the National Childcare Register, you are entitled to a childcare allowance.
The childcare allowance is a percentage of the childcare costs. The exact percentage depends on your (family) income. The lower your income, the higher the childcare allowance percentage. The percentage of childcare allowance for a second and subsequent child is considerably higher than for the first child.
The hourly rate that you pay for childcare also affects the amount of childcare allowance. If the hourly rate is higher than the rate set by the government, you pay the difference yourself.
You apply for the childcare allowance yourself from the Tax Authorities/Allowances. You receive the allowance in monthly instalments. When the year is over, you report on a statement form what your actual costs have been. Any difference between the amount to which you are entitled and what you have received will be settled afterwards by the Tax Authorities.
If you need help completing the childcare allowance form, you can always call on us. We are a benefit service provider and therefore have direct contact with the allowances department of the Tax Authorities.
