In 2005, the Childcare Act (WKO) became effective. The WKO is based on financial contributions from parents, employers and government. Altogether, employers of both partners are assumed to contribute one third of the costs of childcare. In 2006, parents could qualify for a childcare allowance depending on the amount contributed by the employer, the hourly rate to be paid to the childcare institution, the number of hours childcare was provided and the (collective) income. Total costs of formal childcare and the total government contribution to childcare are based on the register Childcare Act 2006 (WKO 2006) by the Ministry of Finance.
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