Child Benefit in Denmark 2007

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Child benefit in Denmark 2007

Applicable statutory basis:
Con. Act No 972 of 22. September 2006 on general child benefits, con. Act No 909 of 3 September 2004 on child benefits.

Basic principles
Tax financed universal scheme covering all residents.

Field of application: beneficiaries
All residents. For certain benefits: only inhabitants with Danish nationality or foreigners domiciled in Denmark since 1 or 3 years.

Conditions

• Residence of the child: The child must be resident in Denmark.
• Other conditions: General child benefits: the parent with the parental authority must pay taxes in Denmark in accordance with the law on taxation at the source.

Age limit
18 years.

Benefits

Monthly amounts:
General child benefit:

• For each child of 0-2 years: DKK 3.473 per quarter = DKK 1.157 per month.
• For each child of 3 - 6 years: DKK 3.138 per quarter = DKK 1.046 per month.
• For each child of 7 - 17 years: DKK 2.469 per quarter = DKK 823 per month.

Special cases

• Unemployed persons: Normal family benefits.

• Pensioners: Benefit for pensioners with the exception of the beneficiaries of invalidity pensions granted after 1 January 2003:

Special allowances of DKK 2.826 per quarter = DKK 942 per month for each child.

When one of the parents is pensioner, reduction depending on the income.

When both parents are pensioners, the benefits are supplemented by DKK 1.452 per year for each child = DKK 121 per month.

• Orphans: Special additional allowance of DKK 3.189 per quarter for each motherless or fatherless child = DKK 1.063 per month.

Special additional allowance for each motherless and fatherless child: Amount is raised to DKK 6.378 per quarter and child = DKK 2.126 per month.

Parental leave:

Basic principles
Tax financed universal protection scheme.

Field of application: beneficiaries

Parental leave: Parents with children under the age of 9 are entitled to a leave to take care of them. This possibility is only for children born before 2002.

Salaried, self-employed workers, unemployed, and persons living with a minimum income that fulfils the conditions that entitle them to daily benefits in case of sickness.

Amounts of benefits
60% of the allowance of the unemployment insurance.

Child care allowances:

Basic principles
Child care allowance: tax financed. Communes can introduce such benefit for parents taking care of their children instead of putting them in a nursery school.

Field of application: beneficiaries

Child care allowance: parents with children aged between 24 weeks and 6 years. Communes can fix more detailed age limits

Conditions
Child care allowance: can be granted during a period of 8 weeks to one year. The parent must be resident in Denmark during 7 of the last 8

years. No accumulation possible with a salary or transfer income. A household can receive a maximum of 3 allowances and the total amount can not exceed the maximum rate of daily maternity benefit.

Amounts of benefits
Child care allowance: can not exceed 85% of net costs for placing a child in a nursery of the commune. Maximum 3 allowances per household.

Other benefits

1. Birth and adoption grants. DKK 1.823 per child and quarter = DKK 608 per month until the children's 7th birthday, in case of birth of more than one child and in case of adoption of more than one child - brothers and/or sisters born on the same date Allowance (single benefit) in case of adoption of a foreign child: DKK 42.007.
2. Allowance for single parents. The general benefits of DKK 1.107 per quarter = DKK 369 per month are supplemented by an additional allowance of DKK 1.126 per quarter = DKK 375 pr. month and per household.
   Condition: Proof of single-parent situation once a year.
3. Special allowances for children with disabilities. Income replacement benefit for domiciliary care of a handicapped child.
4. Advance on maintenance payments. Benefit corresponding to the "normal" alimony of DKK 6.378 per 6 months.
5. Other allowances. Special allowance for parents still studying: an allowance of DKK 5.808 per year, paid by quarter for each studying parent, but only one for each child. The allowance is reduced by income.

Adjustment
Once a year according to the adjustment rate.

Taxation and social contributions
Benefits are not subject to taxation.
No social contributions.

Publiceret: 19-05-2009

Sidst opdateret: 19-05-2009