Database Specific
Database Specific Abstract AbstractThe Net Childcare Cost (NCC) indicator measures the net reduction in family budgets resulting from the use of full-time centre-based care. It is calculated by comparing net income of a family that purchases childcare and an otherwise similar family where no childcare services are bought (for example, if the family can use unpaid informal care).
Data Characteristics Data Characteristics Date last updated Date last updatedThe 1st annual release of the OECD tax-benefit indicators is in February. It includes new indicators for year T-1 for the majority of OECD and EU countries, plus updates for previous years. The 2nd release is in May and includes updates for all available years plus new indicators for year T-1 for the countries that could not be included in the first release.The 3rd and final annual release is in November. It includes updates for all previous years and new indicators for year T-1 for the countries that could not be included in the second release.
Other data characteristics Other data characteristics1. Calculations are for families with two children aged 2 and 3. Parents are aged 40.
2. Net childcare costs are equal to gross childcare costs less childcare benefits, plus any resulting impact in taxes and other benefits following the use of childcare. Gross childcare costs are the fees charged to parents after any public subsidies received by the provider but before any fee reductions or discounts provided to users based on their characteristics. Childcare benefits are childcare allowances or fee rebates that are explicitly designed to reduce the financial costs of childcare. Impacts in taxes include tax concessions conditional on childcare use or childcare expenses, as well as other changes in taxes resulting from childcare use. Finally, impacts in other benefits show the changes in all other benefits (except childcare benefits) resulting from childcare use, notably the loss of homecare allowances, which usually require recipients to not use formal childcare services, thus increasing the net childcare costs. By summing together the gross childcare costs, the impact of childcare benefits, the impact of taxes and the impact on other benefits it is possible to obtain the total indicator for the net childcare costs.
3. Where benefit entitlements change over time, calculations refer to the second month of benefit receipt.
4. Calculations assume full-time work for all parents.
5. If housing benefits are included in the calculations, these are calculated assuming a household renting in the private market paying rent equal to 20% of the average wage. Rent levels are the same for all family types.
6. Where benefit rules are not determined on a national level but vary by region or municipality, results refer to a “typical” case (e.g. Michigan in the United States, the capital in some other countries). A full description of the policies included in the calculations for each country is available here.
6. For a detailed description of the assumptions underlying the OECD Tax-Benefit model and the related policy indicators, please see the methodology document.
7. For more information, visit the project webpage or contact the OECD tax-benefit team.
Reference period Reference periodIndicators calculated before 2018 are based on the policy rules and parameters that were in place on the 1st of July of the selected year. Indicators calculated from 2018 onwards are based on the policy rules and parameters that were in place on the 1st of January of the selected year (7th of April for the United Kingdom and 1st of April for New Zeland)
Population & Scope Population & Scope Geographic coverage Geographic coverageThe information on childcare fees and the related benefits refer to the national rules. For the countries where fees are determined at the local level, in most cases the local authority of the capital is considered. More precisely, local rules are considered in: Australia (New South Wales), Austria (Vienna), Belgium (French speaking community), Croatia (Zagreb), Czech Republic (Prague), Estonia (Tallinn), Germany (Berlin), Greece (Athens), Hungary (Budapest), Iceland (Reykjavik), Italy (Rome), Latvia (Riga), Lithuania (Vilnius), Norway (Oslo), Poland (Warsaw), Slovak Republic (Bratislava), Spain (Madrid), Sweden (Stockolm), Switzerland (Zurich), United KIngdom (England), United States (Michigan). Changes in these and other assumptions over time are noted in country- and year-specific notes.
The Net Childcare Cost (NCC) indicator measures the net reduction in family budgets resulting from the use of full-time centre-based care. It is calculated by comparing net income of a family that purchases childcare and an otherwise similar family where no childcare services are bought (for example, if the family can use unpaid informal care).
Indicators calculated before 2018 are based on the policy rules and parameters that were in place on the 1st of July of the selected year. Indicators calculated from 2018 onwards are based on the policy rules and parameters that were in place on the 1st of January of the selected year (7th of April for the United Kingdom and 1st of April for New Zeland)
The 1st annual release of the OECD tax-benefit indicators is in February. It includes new indicators for year T-1 for the majority of OECD and EU countries, plus updates for previous years. The 2nd release is in May and includes updates for all available years plus new indicators for year T-1 for the countries that could not be included in the first release.The 3rd and final annual release is in November. It includes updates for all previous years and new indicators for year T-1 for the countries that could not be included in the second release.
1. Calculations are for families with two children aged 2 and 3. Parents are aged 40.
2. Net childcare costs are equal to gross childcare costs less childcare benefits, plus any resulting impact in taxes and other benefits following the use of childcare. Gross childcare costs are the fees charged to parents after any public subsidies received by the provider but before any fee reductions or discounts provided to users based on their characteristics. Childcare benefits are childcare allowances or fee rebates that are explicitly designed to reduce the financial costs of childcare. Impacts in taxes include tax concessions conditional on childcare use or childcare expenses, as well as other changes in taxes resulting from childcare use. Finally, impacts in other benefits show the changes in all other benefits (except childcare benefits) resulting from childcare use, notably the loss of homecare allowances, which usually require recipients to not use formal childcare services, thus increasing the net childcare costs. By summing together the gross childcare costs, the impact of childcare benefits, the impact of taxes and the impact on other benefits it is possible to obtain the total indicator for the net childcare costs.
3. Where benefit entitlements change over time, calculations refer to the second month of benefit receipt.
4. Calculations assume full-time work for all parents.
5. If housing benefits are included in the calculations, these are calculated assuming a household renting in the private market paying rent equal to 20% of the average wage. Rent levels are the same for all family types.
6. Where benefit rules are not determined on a national level but vary by region or municipality, results refer to a “typical” case (e.g. Michigan in the United States, the capital in some other countries). A full description of the policies included in the calculations for each country is available here.
6. For a detailed description of the assumptions underlying the OECD Tax-Benefit model and the related policy indicators, please see the methodology document.
7. For more information, visit the project webpage or contact the OECD tax-benefit team.
The information on childcare fees and the related benefits refer to the national rules. For the countries where fees are determined at the local level, in most cases the local authority of the capital is considered. More precisely, local rules are considered in: Australia (New South Wales), Austria (Vienna), Belgium (French speaking community), Croatia (Zagreb), Czech Republic (Prague), Estonia (Tallinn), Germany (Berlin), Greece (Athens), Hungary (Budapest), Iceland (Reykjavik), Italy (Rome), Latvia (Riga), Lithuania (Vilnius), Norway (Oslo), Poland (Warsaw), Slovak Republic (Bratislava), Spain (Madrid), Sweden (Stockolm), Switzerland (Zurich), United KIngdom (England), United States (Michigan). Changes in these and other assumptions over time are noted in country- and year-specific notes.