Employers face compulsory creche payments

16th June 2006, Comments 0 comments

16 June 2006, AMSTERDAM — The government intends to introduce a compulsory employers' contribution to the cost of day care next year.

16 June 2006

AMSTERDAM — The government intends to introduce a compulsory employers' contribution to the cost of day care next year.

A study carried out in May on behalf of Social Affairs Minister Aart Jan De Geus found that over one third of working parents get too little or no contribution towards day care from their employers.

This goes against the child care law of 2005 (Wet kinderopvang) which laid down that parents, employers and the government would each bear a third of the crèche costs.

It was agreed with employers' groups and the labour unions that 90 percent of employees with children would have a third of the cost reimbursed by their company by 2008.

De Geus informed parliament on Thursday that the findings of the study suggest it is unlikely the target of 90 percent will be achieved. Therefore he is proposing introducing the compulsory contribution on 1 January 2007.He is to hold talks with all parties involved before presenting his plan to the rest of the Cabinet.

The compulsory contribution will be raised via an increase in the employers' portion of the WW unemployment insurance premium. De Geus said the financial burden for businesses will not increase as the Cabinet plans to reduce company tax.

"The compulsory employers’ contribution makes it easier and cheaper for parents," the Minister said. Parents need only apply to the tax office (Belastingdienst) to receive the childcare contributions.

[Copyright Expatica News + ANP 2006]

Subject: Dutch news, childcare + the Netherlands

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