Childcare allowance (only applicable for births from March 2017)
Child care allowance (Kinderbetreuungsgeld)
Child care allowance is a parental benefit and granted for mothers and fathers, who are also entitled to family allowance for the child in question (and receive it), share a common household and the usual residence with the child, and have their centre of interests in Austria. Special rules apply to cross-border cases within the European Union.
Non-Austrian nationals need to meet certain criteria under the right of settlement and residence.
Parents have the choice between two schemes: flexible flat-rate Child care allowance and income-related Child care allowance.
Child Care Allowance Account (flexible flat rate Child Care Allowance)
Child care allowance account was introduced for births from March 2017 - for births up to February 2017 parents have had the choice between 4 flat rate variants.
Flexible flat rate child care allowance can be taken flexibly within the duration of 365 and 851 days (which is approximately 12 to 28 months) from the birth of the child by one parent, or from 456 to 1,063 days (approximately 15 to 35 months) for both parents. For the shortest variant (basic variant) child care allowance amounts to Euro 33,88 per day and for the longest it is Euro 14,53 per day. The longer it is taken, the less the daily amount becomes, the amount thus depends on the duration period. For this variant, 20 % is allotted to the second parents, which is not transferable (in the shortest variant it is 91 days).
Income-related Child Care Allowance
Income-related child care allowance is primarily designed to give better earning parents – who wish to withdraw from the labour market for only a limited period of time – the opportunity of receiving some compensation for the earnings foregone during that period.
Alongside general criteria, eligibility requirements also include 182 days of insurable work without interruption prior to the birth of the child.
If both parents take turns in claiming the income dependent child care allowance, it is granted for a maximum of 426 days from the birth of the child. If only one parent claims it, it is granted for only 365 days from the birth of the child. 61 days are thus not transferable and reserved for the second parent.
Income-related childcare allowance amounts to 80 percent of the income last earned, max. Euro 66 per day.
Additional Earnings Possibility – Exemption Limit
While on flat-rate childcare allowance, a parent may additionally earn up to 60 percent of the income last earned or at least up to Euro 16,200 a year.
Under the income-related allowance scheme parents may only earn an additional Euro 6,800 (2017) during the calendar year in question.
If both parents claim child care allowance almost equally, 50:50 or at most 60:40, and each parent claims it for at least 124 days, the parents are entitled to a one-time payment of Euro 500 each after the maximum claim period and after submitting an application for this bonus.
Family Time Bonus
Working fathers who intensively and exclusively take care of their families directly after the birth of a child, who do this with permission of their employers and are thereby off work without their income, are entitled to the “family time bonus” amounting to Euro 22,60 per day This bonus must be taken within a specified period of 91 days from the birth of the child, lasting at least 28 days and at most 31 days without interruption.