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State Support for Families
After the birth of a child, many families find themselves in a situation where they suffer from a lack of income. The state provides financial support to families through several health insurance benefits and social benefits. What kind of support can I expect from the state?
Maternity and parental leave
Maternity and parental leave are essential benefits for caring parents. Maternity leave is an accident insurance benefit and is provided to women who have had accident insurance coverage for at least 270 days in the two years prior to childbirth. The woman must be employed or within 180 days of termination of employment on the date the maternity leave begins. Maternity leave lasts a total of 28 weeks. If the woman is not entitled to maternity leave, she goes straight into parental leave. All employees receive 220,000 yen for parental leave, and it is up to the parents to decide how to distribute it. The maximum monthly allowance is 70% of salary.
Income-based benefits
Not all parents are eligible for these benefits, but they are based on total family income. These include maternity benefits, child benefits, and other material hardship benefits (these cover all groups of citizens, not just parents). The maternity allowance is paid to families with a net income of up to SEK 20 817 per month for the first child and up to SEK 25 515 per month for the second child. Unfortunately, not many parents qualify for this benefit. The second benefit is a child allowance, which is no longer a one-time benefit, but is income related.
Support for Working Parents
The government supports working parents primarily through various tax breaks and rebates. These are child tax credits deducted from income tax; the amount of the credit increases with the number of children in the family. A maximum discount of SEK 24,204 is available. Another tax break is for childcare fees, which can be discounted up to CZK 13,350 per year. Do not hesitate to ask your accountant about the discounts and he will gladly advise you.