Child benefit

What it means

Child benefit is a monthly state benefit that the Office of Labour, Social Affairs and Family pays to the eligible person for each dependent child, regardless of family income. It is the state's contribution to raising and supporting a child and is not tied to the parent's employment.

It is separate from the child tax bonus, which a parent claims through their employer or in the tax return and which depends on taxable income. A family can receive both at the same time, as they are two independent instruments.

The amount is adjusted regularly and may differ by the child's age. Other family benefits exist alongside it, such as the maternity benefit and the parental allowance, but they have different conditions and relate to the period of caring for a young child.

How it works in practice

The application is made at the labour office for the place of permanent residence; on a child's birth the entitlement is sometimes handled automatically. For a child above a certain age, it must be shown that they are continuously preparing for a profession, meaning studying, otherwise entitlement is limited.

Where parents work in another EU member state, the rules on coordination of social security apply. Which state pays first and which only tops up the difference depends on the parents' employment and residence.

Child benefit places no obligation on the employer, unlike the tax bonus applied through payroll. Payroll staff often get questions about both, however, so it is worth explaining to employees where each one is claimed.

What to watch out for

Changes affecting entitlement, such as the end of studies, a move abroad or a change in who cares for the child, must be reported to the office. Otherwise amounts paid without entitlement will have to be repaid.

Where compulsory schooling is neglected or there are other serious problems in upbringing, the office may decide to pay the benefit to a special recipient. The benefit is meant for the child's welfare, and its use may be reviewed.