Parents’ Benefit

The following persons are entitled to receive the benefit

Any socially secured person taking care of a child or several children born in the same labour, if this person is employed on the day of granting of the benefit (is considered to be an employee or a self-employed person according to the Law On State Social Insurance):

Person entitled to receive the parents’ benefit

Condition to be entitled for the parents’ benefit

One of the child’s parents

Is on the parental leave or does not earn income as a self-employed person

or

Is not on the parental leave or earns income as a self-employed person during the child care

One of the adopters, who cares for and looks after a child to be adopted prior to the approval of the adoption in the court with a decision of the orphan’s court

Is on an unpaid leave granted in connection with the need to care for a child or does not earn income as a self-employed person

or

Is not on an unpaid leave granted in connection with the need to care for a child or earns income as a self-employed person during the child care

A member of the foster family, who has concluded an agreement with the local government

A guardian or any other person, who is actually taking care of and raising the child according to a decision of the orphan’s court

The benefits’ claiming rules

The easiest way to do this by filling in an e-application to the state and local governments’ services portal www.latvija.lv

Grounds for awarding the benefit:

  • Application for receiving the benefit

In case the applicant is on parental leave, the SSIA receives the information on the parental leave (if the applicant is one of the child’s parents) or unpaid leave granted in relation to the need to take care of the child (if the applicant is an adopter, who looks after the child to be adopted before the approval of adoption in the court, member of the foster family, guardian or other person, who is actually taking care of and raising the child according to a decision of the orphan’s court) from the State Revenue Service.

An application you can submit in one of the divisions of the State Social Insurance Agency (SSIA):

  • personally or as electronic document, in accordance with the legal regulation of the processing of the electronic documents;
  • sent by post or submit by a notary authorized person’s intermediation;
  • submit in one of the customer service centers of the state or local governments, which have the cooperation agreements with SSIA.

The easiest way to do this by filling in an E-application to the state and local governments’ services portal www.latvija.lv

When applying for the benefit by post or e-mail application form in the webpage of the State Social Insurance Agency www.vsaa.lv can be used or a free text application.

By signing the application, the person requesting the benefit confirms that the information provided in the application is accurate.

In case the applicant is an adopter, who looks after the child to be adopted before the approval of adoption in the court, member of the foster family, who has concluded an agreement with the local government, guardian or other person, who is actually taking care of and raising the child, the information about giving the child for pre-adoption care and upbringing, placing the child in a foster family, establishment of guardianship or paying the benefit to the person actually taking care of and raising a child, is submitted to SSIA by the orphan’s court that has made the particular decision.

If the applicant is an adopter, the information about the adoption shall be given by the court that has approved the adoption to the SSIA within three working days after the judgement coming into force.

The benefit may be requested through an authorised person, provided that the representation rights have been granted in accordance with Article 38 Paragraph one of the Administrative Procedure Law. Representation of a natural person shall be drawn up as a notarised power of attorney, or a natural person may authorise his or her representative at the VSAA office, if both the representative and the authorising person are present.

Duration of receiving of and amount of the benefit

There is an option to choose the duration of receiving the benefit and the amount of the benefit is established according to the chosen duration of receiving the benefit:

  • until the child reaches the age of 1in the amount of 60% of the recipient’s average wage subject to insurance contributions or
  • until the child reaches the age of 1.5in the amount of 43.75% of the recipient’s average wage subject to insurance contributions.

In such amount the benefit is determined, if the parent benefit recipient will be on leave for child care.

If the choice is made regarding the duration of receiving the benefit (until the child reaches the age of 1 or 1.5) and the benefit is granted, the chosen duration in case of the same child may not be changed.

What should a recipient of parental allowance know, where he/she makes use of the parental leave for one-and-a-half years and receives the parental allowance until the child reaches the age of 18 months

Childcare leave

According to Article 156 of the Labour Law, every employee, both the mother, or the father, has the right to parental leave in connection with the birth or adoption of a child.

  • Such leave shall be granted for a period not exceeding one and a half years and it can be requested at any time up to the day the child reaches the age of eight years.
  • Parental leave, upon the request of an employee, shall be granted as a single period or in parts. The employee has a duty to notify the employer in writing one month in advance of the beginning and the length of the parental leave or parts thereof.
  • An early termination of the parental leave and return to work shall be carried out according to the procedures stipulated by a collective agreement or an employment contract, based on an agreement by and between the employee and employer. The employee is entitled to return to work, subject to a notification to the employer at least two weeks in advance, where due to objective reasons there is no reason for further need of childcare.

Parental allowance

  • Parental allowance is granted for a period until the child reaches the age of one year or one and a half years.

Thus the Labour Law provides for an option to take care of a child for up to one and a half years and it is the calendar period of time. However, the parental allowance is granted and paid until the child reaches the age of one and a half years. Thus the period for receiving the benefit is related to the age of a child.

Where a woman has been granted the maternal leave (the SSIA grants and pays the maternity benefit for this period), the childcare leave will be granted by the employer after the maternal leave will have expired, since an employee cannot be on two leaves at the same time. Parental allowance is also not granted for a child, for the birth or childcare of whom the maternity benefit has been granted for the same period of time.

Thus, the period of parental allowance will overlap with the employer’s granted childcare leave period. Meaning, the payment of parental allowance will have expired, because the child will have reached the age of one and a half years, but the childcare leave will continue for some time after that.

Example: if a child is born on 10 September 2016 and its mother will have opted for the patrenal allowance until the child reaches the age of one and a half years, then the parental allowance will be paid until the 9 March 2018 including. At the same time, the childcare benefit of 171 Euro/month will be paid during this period of time, as well.

But the childcare leave is not requested by the mother with the birth of the child, but after the maternal leave is expired, thus the one-and-a-half-years long childcare leave, which is granted by the employer, will exceed 9 March 2018 by 56 or 70 days (depending on the maternal leave, for which the maternal allowance is granted and paid). Thus, the parental allowance is not paid for the last 56 or 70 days, while still on the childcare leave.

For the childcare from the age of 1,5 till 2 years, the childcare allowance amounts to 42.69 Euro per month (until 1,5 years – 171 Euro per month).

The amount of the benefit, if the recipient works and is not on the parental leave

The recipient of the parents’ benefit, who resumes work, discontinuing the parental leave, or resumes earning income as a self-employed, the benefit is paid in the amount of 30% of the benefit granted.

Also for a person who, on the day of requesting the benefit, is not on the parental leave or earns income as a self-employed person the benefit is calculated in the amount of 30% of the benefit granted (depending on what duration of receiving the benefit has been chosen by the recipient – until the child reaches the age of 1, in the amount of 60% of the average wage; or until the child reaches the age of 1.5, in the amount of 43.75% of the average wage).

For example: the parents’ benefit is granted for the period until the child reaches the age of 1, in the amount of 60% of the recipient’s average wage subject to insurance contributions – 15 euros per calendar day.

After discontinuation of parental leave and resuming work, the benefit will be recalculated in the amount of 30% of 15 euros = 4.50 euros per calendar day.

How is the average wage subject to insurance contributions calculated to determine the amount of the benefit?

The calculation of average contribution wage for a person includes only the wage subject to insurance contributions, from which the person is insured for the parents’ benefit, namely, contribution wage of the person requesting the benefit registered in the SRS from the employer or the income of a self-employed person registered in the SRS.

For an employee, the average wage subject to insurance contributions per calendar day shall be calculated for the 12-month period that has ended two months prior to the month, starting from which the benefit is granted:

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

The month, starting from which the benefit is granted

For a self-employed person, the average wage subject to insurance contributions per calendar day shall be calculated according to the actual contribution made in the last 12-month period that ends a quarter (3 months) prior to the quarter, on which the parents’ benefit has been granted.

(The average wage subject to insurance contributions according to Section 31 and 32 of the Law on Maternity and Sickness Insurance – in the 12-month period, excluding the days of temporary incapacity for work, for which the sickness benefit is paid (Work Disability Form B), or calendar days of maternity leave, paternity leave, childcare leave or unpaid leave granted in relation to the necessary to take care of a child).

What benefits are paid simultaneously with the parents’ benefit?

One is entitled to simultaneously receive the parents’ benefit (until the child reaches the age of 1 or 1.5, depending on the option selected) and the allowance for child care, the amount of which is 171 euros a month until the child reaches the age of 1.5.

Is the allowance for child care still paid even if the parents’ benefit is calculated in the amount of 30% of the granted amount in case the person discontinues the parental leave and resumes work?

One is entitled to continue receiving the allowance for child care – 171 euros a month – and the recalculated parents’ benefit at the same time.

Can one of the parents receive the parents’ benefit and the second parent receive the allowance for child care in case both of the parents take care of one child?

The parents have to agree on who will receive the child care benefits, as both the parents’ benefit and the allowance for child care are granted to one of the parents (one person).

In case of taking care of twins or more children born during the same labour

In addition to the basic sum of the child allowance, for every next child, an extra bonus is assigned for the care of twins or several children born at a single delivery.

I.e., if twins were born, then the person, who is taking care of the twins or several children born at a single delivery, will receive extra bonus in addition the child allowance:

  • Up until the child is 1.5 years old – 171 euro per month for each next child;
  • Aged between 1.5 and 2 years – 42.69 euro per month for each next child.

Example: What benefits and how much an applicant taking care of twins will receive:

Age of children

Benefits granted for taking care of twins

Total amount of benefits to be received per month

 

Up until the child is 1 or 1.5-years-old

Parents’ benefit

The monetary scope of parents’ benefit is determined based on the period of time, for how long the benefit will be received.

Up until the child is 1-year-old (60% of the mean salary) or 1.5-years-old (43.75% of the mean salary).

Childcare benefit

171 euro per month up until the child is 1 or 1.5-years-old.

Extra bonus on top of the childcare benefit

171 euro per month up until the child is 1 or 1.5-years-old.

 

 

Parents’ benefit

+

171 euro

+

171 euro

Time for claiming

The application must be submitted not later than within 6 months from the moment when the right is created. If the benefit is applied for later it is granted only for the previous 6 months prior to the application for the benefit.

Time for decision

Decision on granting of the benefit is made within ten days after the SSIA has received all the documents and other information necessary to grant the benefit.

Receipt of the benefit

The benefit is transferred to your account of a credit institution or a postal account system (PAS) that you have specified in your application.
The benefit is paid for the previous month.

Important!

The payment of the parents’ benefit is discontinued, while you receive the unemployment benefit.
The parents’ benefit is not granted for a child, in relation to the birth of whom the maternity benefit is granted for the same period.

 

Published date: [24.04.2018]