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Parenting families will be better off in the new year!
Parental allowance is a social assistance benefit provided by the government under certain conditions. This allowance is always paid to the youngest child in the family (up to age 4). The parent (mother or father) who takes care of the child throughout the day is entitled to the parent allowance. This allowance is an income-neutral allowance; however, the monthly allowance that a parent chooses to receive depends on whether that parent is entitled to a maternity allowance.
In other words, if a parent is not entitled to the Maternity Allowance, the maximum monthly parental allowance for that parent is SEK 7,600. On the other hand, a parent who is receiving a “maternity allowance” may opt for a higher monthly parent allowance. This limit is based on a daily assessment basis and is confirmed on a form by the relevant district social security authority.
Example.
The social security office confirms a daily allowance of 850 SEK. The parental allowance can be selected up to 30 times, and only 70% of that amount can be selected: 850x30x70%. Thus, a parent can choose a monthly parent allowance of up to 17.850 kroner, which can be withdrawn earlier than 4 years. This option is mainly made by parents who want to return to work as soon as possible, while other adults are taking care of the child. Alternatively, children up to age 2 may attend preschoolfor 46 hours per month.
And this increase in the parental allowance has been the subject of a fierce battle between the coalition partners. The increase is finally going to be implemented next year. The proposal to increase the parental allowance has passed its first reading in the plenary session of the House of Representatives and continues on the road to approval.
Under the proposal, parents who are actively receivingparental benefits as of January 1, 2020,and whose children are under the age of fourat that timewould be entitled to an increase in the parental allowance. They prefer to hold out for a lower monthly amount until the end of 2019, as it is the only way to “catch up” with the 80,000 kroner increase from the new year.