Family allowances 2022: right and how to claim them

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Child allowance, sometimes incorrectly called child allowance, is a social benefit granted to low-income families with dependent children. It is intended to help the family cover child support and education costs. The amount of the benefit depends on the total income of the family and the age of the child, while since 2021 the area has increased by 26%. Also new, thanks to the increase in the subsistence level from April 1, 2022, many more families will receive allowances.

What is a child allowance?

Family allowances are sometimes referred to as family allowances. This is the type of social benefit that is intended dependent children living in very low income families. This financial assistance is intended to help the family provide for the needs of the child and provide him with everything he needs for his education and nutrition.

The amount of child benefit varies in three levels depending on the age of the child, but also in two areasthat take into account the financial income of the whole family. It’s about long-term contributionwhich is paid monthly.

Child allowances from 1 July 2021

Child allowances differ from July 2021 compared to previous years. From this date 26% increase in basic allowances for children of all ages. This means that, for example, the amount for children under 6 has been changed from the original 500 CZK to 630 CZK.

Another novelty, families in which one of the parents has an activity or business income up to the living wage of an individual can benefit from a better contribution of an increased amount. It now differs by 500 CZK from the base areapreviously it was a difference of 300 CZK.

Child’s age Base area since 2021 Increase in area since 2021
up to 6 years CZK630 CZK1130
from 6 to 15 years old CZK770 CZK1270
more than 15 years CZK880 CZK1380

Right to family allowances

Every family with a decisive (net) income is entitled to child benefit less than 3.4 times subsistence level. Families whose net income exceeds 3.4 times the subsistence level are not eligible for child benefit. It is always taken into account for the right to the benefit previous calendar quarter revenue. Parental allowance is also considered income.

For family allowances to an increased extent then families in which one of the family members (usually one of the parents) has the following income are entitled:

  • employment (at least up to the subsistence level of the individual),
  • Business,
  • health insurance benefits,
  • retirement insurance benefits,
  • unemployment benefits and retraining benefits,
  • care allowance for a person under the age of 18,
  • parental allowance, if it is paid after the maternity allowance has been exhausted.

From April 1, 2022, the subsistence level is increased by 10%. In practice, this means that many more families can pay child benefit.

Ceiling of monthly income in kroner for the right to child benefit
A complete family with several dependent children Family subsistence minimum in CZK from 1 April 2022 Limit: 3.4 times the family’s subsistence level in CZK
one to 6 years 9610 32,674
two: 5 and 8 years old 12,280 41,752
three: 5, 8 and 12 years old 14,950 50,830
four: 5, 8, 12 and 16 years old 18,000 61,200

Application for family allowances

If you want to apply for your family allowances, you must apply for them on the prescribed form from the competent local labor office, in particular the Department of Welfare Benefits. The family allowance form bears the mention “Request for family allowances”. Proof of annual income must also be provided with the completed form. This includes earnings from employment, business, sickness or parental allowance and more.

Application for child allowance is required administered annually. It can be filed and electronically, either via the data box or via an electronic signature. The right to payment of the benefit then arises on the day the application is submitted. And can family allowances be recovered? Yes they can be obtained even 3 months back.

What about family allowances?

Family allowances are reimbursed monthly by the employment office. That is to say no later than the end of the following month. The exact date on which the money will appear in the account may vary slightly due to public holidays and the bank in which the person has an account. Alternatively, they can also go over a slip. They can be delayed by 2 to 4 days compared to the payment on account.

Family allowances for the self-employed

The application for family allowances for the self-employed is assessed according to different rules from those applicable to employees. When applying for family allowance income from the last filed tax return is assessed.

Under state welfare law, business income is always the least counted 50% of the average monthly salary in the national economy. The average salary in the Czech Republic in 2021 was 37,839 CZK.

Family allowances: calculator

If you are interested in the amount of your child benefit, you can facilitate the calculation of child benefit with our handy calculator.

Child benefit in Germany

Family allowances for neighbors are currently causing problems for Czech companies. As employers, they cannot compete with the Germans to whom the Czechs most often turn for “better”.

Besides the fact that Germans earn on average three times more than in the Czech Republic, they also right to child benefit (kindergeld)if they pay social security contributions on their salary. In Germany there are no family allowances. This means that everyone who works here is entitled to it.

A supplement of 219 euros per month (for each of them) can be obtained for the first and second child. 225 euros for the third, 250 euros for the fourth and each additional.

Family allowances in Austria

Similar kindergarten systemas it works in Germany, it also exists in neighboring Austria. For Czechs working in Austria, however, the situation changed in 2019. In 2018, the Austrian government coalition decided to reduce the benefits flowing from the country to Eastern Europe. She has sent a bill to parliament that would limit the payment of benefits to other EU countries.

Since January 2019, child benefits for citizens of other EU countries working in Austria have therefore been reduced. However, according to European Union law, they should be entitled to the same level of contributions as Austrian citizens. From now on, the amount of the allowance also depends to the permanent residence of the child (previously, the dose was graduated only according to the age of the child).

What is a child allowance?

In the Czech Republic, child benefit is a social benefit paid by the state to dependent children living in low-income families. The financial assistance is used to cover all necessary expenses related to the maintenance of the child and the education of the family.

Who receives family allowances?

This social benefit can be paid to families whose qualifying income is less than 3.4 times the family’s subsistence level. The amount of the allowance depends on the age of the child and the total income of the family.

What about family allowances?

Family allowances in the form of a financial amount are always paid by the employment office with a month’s delay. This means the end of the following month at the latest. The exact date on which the money arrives in the account can vary depending on the holidays or even depending on the bank in which the person has an open account. In general, if the benefits are paid in the form of a postal order (voucher), they leave 2 to 4 days later.

How are allowances for children of divorced parents assessed?

For dependent children of divorced parents, the parent with whom the child lives is always taken into account. If they have a child in joint custody, it depends on their agreement.

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