The rate for income-related National Childcare Scheme subsidies depends on the applicant’s reckonable income and varies from a minimum rate of €1.40 to a maximum of €5.10 per hour of childcare used. The table below shows the maximum and minimum income-related subsidy rates per hour, which vary according to the child’s age and the child’s education status.
Child's Age
|
Minimum Subsidy per hour
|
Maximum subsidy per hour
|
Less than 12 months
|
€1.40
|
€5.10
|
12-24 months
|
€1.40
|
€4.35
|
3+ years
|
€1.40
|
€3.95
|
At school (or older than 6 years of age and less than 15 years of age)
|
€1.40
|
€3.75
|
• Income below €26,000Applicants with reckonable income (inclusive of any partner’s income) at or below €26,000 per annum qualify for the maximum hourly rate of subsidy depending on the child's age and education stage.
• Income between €26,000 and €60,000For applicants with reckonable income (inclusive of any partner’s income) between €26,000 and €60,000 per annum, the subsidy rate tapers downward as reckonable income rises, declining evenly from the maximum subsidy rate to the minimum subsidy rate.
• Income above €60,000
€60,000 is the maximum income threshold for the income-related subsidy. A family applying for an Income Assessed subsidy whose income exceeds the maximum threshold will receive a subsidy of €1.40 per hour in respect of each child on the application for whom a subsidy has been requested.
The following formula is used to calculate the rate of subsidy:
NS = the minimum subsidy rate (either €0 or €1.40),
XS = the maximum subsidy rate (which varies by age and education status),
MT = the maximum income threshold (€60,000),
BT = the base income threshold (€26,000), and
RI = the reckonable income.