Under the new law covering childcare in the Netherlands, paying for childcare is the joint responsibility of parents, employers and the government. Applicants for a childcare allowance have to arrange a contract with the childcare centre or childminder themselves.
All one and two-parent families in which the parent(s) combine paid employment with the care for children are eligible for a government allowance. The government pays a percentage of the costs of childcare back to the parents, depending on the level of income: the lower the reported income from wages, benefit or pension, the higher the compensation. The level of compensation is also connected with the numebr of children in childcare. In order to prevent childcare from becoming unaffordable for large families, the allowance increases from the second child.
The level of the allowance also depends on the rates for childcare (with a maximum) and the number of hours care per month.
The law covers only officially regulated forms of childcare:
• Day care for 0-4 year-olds
• After-school care for primary school children
• Childcare at parent-participation centres and by registered childminders.
Employers may compensate a maximum one third of the costs of childcare untaxed, but the law does not require them to do so. If employers compensate less, the parents have to pay the remaining amount themselves. The government compensates part of these costs too, in addition to the basic allowance. Self-employed parents are also eligible for this extra allowance, as they by definition do not have an employer.
In one-parent families, only one employer can contribute to the costs of childcare.
For parents who are required to do a compulsory naturalisation course or who participate in a work reintegration project, the municipality or the Institute for Employee Benefit Schemes (UWV) pays the employer’s contribution. Students and families in certain social-medical situations may also be eligible for extra compensatio.
