The Law on Family Allowances and Financial Aid for Family Organizations (LAFam) regulates the grant of family allowances and financial aid to family organizations. Its revision, which entered into force on August 1st 2020, entails three major changes: the grant of education allowances from the age of 15 years old, the grant of family allowances to unemployed mothers raising their child(ren) alone, and the creation of a legal basis for financial aid to family organisations.
Grant of education allowances from the age of 15
The age limit has been changed so that the education allowance (instead of children allowances) is granted from the beginning of the month in which the child begins post-compulsory education, but at the earliest from the beginning of the month in which the child reaches the age of 15.
Family allowances for unemployed mothers
Unemployed mothers raising their child(ren) alone are entitled to receive family allowances in addition to maternity benefits.
Financial assistance to family organisations
Creation of a legal basis for financial aid granted to family organisations.
The new rules on education allowances will be coordinated with the back-to-school season. We recommend that employers inform their employees of these changes and adjust the amounts of family allowances paid into their payroll system and withholding tax database for the employees concerned.
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