Childcare very often more expensive than allowance rate; Parents pay €3,210 per month

Last year, three-quarters of Netherlands parents paid a higher hourly rate for childcare than the maximum rate the government set for the childcare allowance, Statistics Netherlands (CBS) reported. On average, parents paid 3,210 euros from their own wallets for child care.

Childcare organizations determine their hourly rate. The government sets a maximum hourly rate for formal childcare each year. Parents can apply for chidlcare up to this rate. If the childcare center charges more, parents pay the difference themselves. Last year, over 700,000 parents received childcare allowance for just over 1 million children. The number of kids in childcare increased by almost 19,000 compared to 2022.

In 2023, the total childcare costs averaged 8,950 euros. The childcare allowance covered 5,740 euros (64 percent). Parents paid the remaining 3,210 euros (36 percent). That amount consisted of 2,960 euros in personal contribution according to the established maximum hourly rate and 520 euros that parents had to pay more because their childcare rate was higher than the maximum hourly rate. Almost three-quarters of parents paid a higher hourly rate than the government maximum for at least one child.

For parents with one child in childcare, the childcare costs amounted to an average of 6,130 euros last year. The childcare allowance covered 62 percent of that, on average. Parents with two children paid an average of 11,760 euros, of which almost 66 percent was reimbursed. Parents with three or more children spent almost 16,580 euros on childcare last year, and got almost 68 percent reimbursed.

The amount of childcare allowance depends on the parents’ taxable income, the number of children in childcare, and the type of childcare. The reimbursement percentage increases with the number of children because parents with an income from 26,945 euros received a relatively higher allowance for the second and third child in 2023.

Last year, children spent an average of 830 hours in childcare, 10 hours more than in 2022. “The increase may be due to the fact that the number of hours of care for which parents can receive an allowance no longer depends on the number of hours worked by the parents since 2023,” CBS said.