In 2026, the cabinet will invest €199 million in a higher allowance for working parents. This year, a first step has already been taken, for which €455 million has been reserved. With these funds, the group of working parents with a joint income of up to approximately €55,000 will be entitled to the maximum reimbursement percentage of 96% next year. Higher incomes will also receive a higher reimbursement percentage.
In 2027, the reimbursement will increase further, making childcare nearly free for middle incomes with a joint income of up to nearly twice the modal income. In 2029, when the new system comes into effect, the reimbursement will be income-independent. All working parents will then be entitled to the maximum reimbursement percentage of 96%.
Increase in maximum hourly rates
With the draft decision, the cabinet is also indexing the maximum hourly rates and assessment incomes in 2026. It was agreed in the Coalition Agreement not to adjust the maximum hourly rates to the price level for one time. However, in the Spring Memorandum, the cabinet decided to do so. This keeps the childcare allowance in line with the costs that parents incur for childcare. This makes it more attractive for parents to work (more).
The maximum hourly rates will increase by 4.84% in 2026. The new amounts for next year are €11.23 in daycare, €9.98 in after-school care, and €8.49 in childminding. The assessment incomes will be indexed by 4.04%. This way, the childcare allowance keeps pace with the average price level in the economy and remains accessible and affordable for working parents.
2025 | 2026 | |
Daycare | €10.71 | €11.23 |
After-school care | €9.52 | €9.98 |
Childminding | €8.10 | €8.49 |
Internet consultation
Responding to the draft decision can be done until May 5, 2025.