On April 22, 2015, the parental contribution payable in respect of a child in subsidized childcare was changed. It is now composed of a basic contribution and an additional contribution adjusted according to family income.
Budget 2016‑2017 provided for, with respect to 2015, a 50% retroactive reduction in the additional contribution for a second child attending subsidized childcare. For more information on the refund of expenses paid in 2015 for a second child, please see the page “Retroactive Application of the Reduction in the Additional Contribution”.
The basic contribution and the additional contribution are indexed annually, on January 1. As of January 1, 2016, the basic contribution is $7.55 per day, per child. If your net family income* is $50 545 or less, you have no additional contribution to pay. At an income of $75 820, the daily rate starts rising gradually, reaching $20.70 per day at an income of approximately $158 820.
As of an income of $50 545, the additional contribution is $0.70 per day, for a daily rate of $8.25. As of an income of $75 820, the additional contribution increases gradually until it reaches $13.15 per day, which corresponds to an income of $158 820, for a maximum daily rate of $20.70.
The basic rate is payable directly to the subsidized childcare service, while the additional contribution according to family income is paid when the income tax return is filed. To avoid having to pay the full amount on filing the tax return, you can ask your employer to adjust your source deductions of income tax so as to pay your additional contribution during the year.
* Your net family income corresponds to line 275 of your income tax return. If you had a spouse on December 31, 2015, your family income corresponds to your net income and that of your spouse (line 275 of your spouse’s tax return).
To determine the net daily cost of your childcare expenses depending on your family situation, please use the calculator below.
To estimate the reserve, per pay period, for your additional contribution for subsidized childcare, use the calculator below.