Austrian Child Care Allowance

The childcare allowance available to families living in Austria, known as Kinderbetreuungsgeld (KBG – also referred to as Austrian GYES by Hungarians), provides significant support to parents during their child’s first years. This benefit can be accessed in various forms, adapting to the needs and life situations of families. Below, we will detail the Kinderbetreuungsgeld system, its conditions, and application methods.

What is Kinderbetreuungsgeld?

Kinderbetreuungsgeld is a support provided by Austrian social security that parents can claim after the birth of a child. The purpose of the support is to provide financial security to parents during the child-rearing period and to enable one parent to stay home with the child while ensuring livelihood.

One of the unique features of the Austrian Kinderbetreuungsgeld system is its flexibility in adapting to parents’ needs. The duration and amount of support can be chosen in various ways, allowing every family to select the solution that best suits their individual situation.

Types of Childcare Allowance

You can choose between two main types of Austrian child care allowance:

1. Lump-sum Child Care Allowance (Flat-rate Child Care Benefit):

This option provides a fixed daily support amount, which depends on the duration chosen by the parent.

The care can be used for a minimum of 365 days and a maximum of 851 days if only one parent stays at home. If the parents share it, the duration can be extended up to 1,063 days.

The amount ranges from 15.38 euros to 35.85 euros per day.

2. Income-Dependent Childcare Allowance (Jövedelemfüggő gyermekgondozási segély):

This option provides 80% of the parent’s previous year’s income, up to a maximum of 2,000 euros per month.

The benefit is available for up to 365 days (if claimed by one parent) or 426 days (if shared by both parents).

This option is particularly favorable for those who previously had higher incomes and are planning to stay at home for a shorter period.

Who is Eligible for Kinderbetreuungsgeld?

The conditions for claiming Kinderbetreuungsgeld are as follows:

Residence in Austria and Social Security Status: Parents must have a registered address in Austria.

At least one parent must have an Austrian social insurance relationship.

Family Allowance Eligibility: Parents must be eligible for Austrian family allowance (Familienbeihilfe).

Income Limit: For the flat-rate Kinderbetreuungsgeld, the parent’s annual income must not exceed 16,200 euros.

In the case of income-dependent support, there is no separate income limit, but the amount of support depends on previous income.

Child’s Age: The care can be requested from the child’s birth and can be provided until the child is three years old, depending on the chosen duration.

How to Share Kinderbetreuungsgeld?

A special feature of Childcare Allowance is that parents can share it between themselves. This means that one parent can spend a certain period at home with the child, and then the other parent can take over the care period. The advantage is that both parents can participate in the child’s first years while receiving financial support for the family.

Austrian regulations encourage sharing by offering extra support, called the Partnership Bonus, when parents share childcare responsibilities. This amount totals 1,000 euros, which parents receive equally if they divide the care period at least 40-60% between them.

How to Apply for Kinderbetreuungsgeld?

The application must be submitted to the locally responsible health insurance provider. The following documents are required for the application:

• Child’s birth certificate.
• Parents’ marriage certificate or paternity declaration.
• Decision on family allowance eligibility.
• Proof of residence for parents and child.
• Parents’ social security certificates.

How long does it take to process the claim?

The processing time for the application is usually a few weeks, but this may vary depending on the specific regions and the completeness of the submitted documents. You can inquire about the status of the application from the responsible health insurance provider.

What to Pay Attention to During the Application?

Timing: It is advisable to submit the application as soon as possible after the child’s birth to avoid any gaps in benefits.

Document Accuracy: All necessary documents must be submitted precisely and comprehensively, as incomplete documentation may delay the review of the application.

Partnership Bonus: If parents share childcare, it’s worth planning the periods in advance to be eligible for extra support.

What happens when the Kinderbetreuungsgeld period expires?

After the expiration of the child care allowance period, parents can choose from several options:

Extension of Childcare Leave: Under certain conditions, it is possible to extend childcare leave, although this no longer comes with financial support.

Return to Work: Austrian laws protect parents’ right to return to work. Parents are entitled to part-time employment if the child has not yet reached school age.

Other support options: The Austrian family policy system offers additional support, such as family allowances or tax deductions.