The Family Allowance Funds pay family benefits to employees and comparable categories, non-agricultural self-employed workers and, more generally, all residents of France with children even if they do not work.
Under Section L. 512-1 of the Social Security Code, "any French or foreign person residing in France with one or more dependent children also residing in France, is entitled to family benefits for those children".
Family benefits are awarded for legitimate, illegitimate, adopted and foster children on the condition that they are dependants of the beneficiary.
Whether or not a child is considered as a "dependent child" is based on an assessment of a de facto situation. There is however an age limit for the award of benefits:
20 years old (general rule) for children who are not working or whose monthly net earnings do not exceed 893.25 €.
21 years old for the payment of housing benefits and the "family income supplement." the age limit is 21.
Finally, a flat-rate allowance was created in July 2003 to offset the financial loss incurred by families with three or more children when the eldest child reached their twentieth birthday. This is paid for a maximum of one year.
Formula used for the calculation of family benefits: family benefits are calculated as a percentage of the monthly family benefit base (BMAF). The BMAF is currently set at €406.21. The BMAF is uprated on 1st April each year in line with the anticipated change in the average annual consumer price index excluding tobacco.*
Family benefits include:
basic benefits for maintenance,
benefits to offset childcare costs and the costs incurred due to the arrival of a child which have been combined under the early childhood benefit programme (PAJE),
benefits for special purposes.
* The BMAF was set at 406.21 € on April 1, 2014 (no increase on April 1st, 2015).
A –BASIC MAINTENANCE BENEFITS
NB: As of July 1, 2015, family benefits for households or people with dependent children are means-tested.
1) Child benefit
Family benefits are paid from the 2nd dependent child residing in France. They are paid without any employment criteria. As from July 1, 2015, family benefits for households or people with dependent children are means-tested (See amounts in the appendix).
2) Flat-rate allowance
This allowance is payable to families with three or more dependent children whose child benefit is reduced when one or more of the children reaches the age of 20 (the age limit for child benefit). To qualify, the family must be entitled to child benefit for three children or more, including the child who has reached their twentieth birthday. The allowance is paid on behalf of the concerned child for a period of 12 months, beginning on the first day of the month of the child's 20th birthday up to the month preceding their 21st birthday.
The monthly rate of this allowance is 20.234% of the BMAF, or €82.19 since the 1st April 2014. Essentially, the amount of the award is divided by 2 or by 4 depending on household income (year N-2) when this exceeds 72,735 (for a family with 3 children), 78,330 € (for a family with 4 children) + 5,595 € per additional child (for a family with more than 4 children). However, a supplement can be paid on a sliding scale if household income for calendar year N-2 is slightly higher than the applicable income ceiling.
3) Family income supplement
This is a means-tested benefit payable to families with at least three children aged between three and 21 years. The income ceiling varies based on number of dependent children and household makeup. To be eligible for this benefit in 2015, net household income in 2013 must not exceed: €37,555 for a single-income couple with three children or €45,941 for a dual-income couple or single parent. If household income slightly exceeds this threshold, a supplementary benefit is paid.
The amount is equal to:
41.65% of the BMAF, i.e. €169.19 (base amount)
45.82% of the BMAF, i.e. €186.13 (increased amount paid to families whose income does not exceed a certain ceiling).
4) Family support allowance
This allowance is a non means-tested allowance payable for any dependent child under the age of 20 who is orphaned or half-orphaned, any child not regarded as a legitimate child of either parent, or any child whose mother and/or father fail(s) to provide adequate support. If the child works, his/her net monthly income must not exceed 893.25€.
This allowance comes to:
31.5% of the BMAF (€127.96) for any child orphaned of both parents or in a comparable situation
23.63% (€95.99) for a half-orphaned child or child in a comparable situation.
B – EARLY CHILDHOOD BENEFITS
The various benefits to offset the costs due to the arrival of a child and help pay for the cost of childcare are grouped together under the early childhood benefit programme (Paje).
Early childhood benefits include:
a means-tested birth/adoption grant,
a means-tested monthly allowance paid from the child's birth to their third birthday or from the arrival of the adopted child,
a shared child-rearing benefit (PreParE) for all births or adoptions after 31 December 2014 or a supplement for free choice of working time (Clca) for all births or adoptions prior to 1st January 2015, with a required minimum period of contributions,
a supplement for free choice of childcare at a rate based on family income.
1) Birth/Adoption grant
This means-tested allowance is intended to cover the expenses related to the birth or adoption of a child. It is payable during the seventh month of pregnancy or upon the adoption of a child under 20 years of age. The amount of the grant is €927.71 for a birth and €1,855.42 for an adoption.
To qualify, the expectant mother must prove that she has submitted to the first routine prenatal examination performed during the first 14 weeks of pregnancy. The income ceiling depends on the number of children in the family and the number of babies expected. The ceiling is higher when both parents are working and for single parents. As of 1st January 2015, the family's annual income for 2013 must not exceed €35,729 for a family expecting one child or €45,393 for two working parents or a single parent.
2) Basic allowance
The basic allowance is paid after the birth/adoption grant. It is a means-tested benefit (the income ceilings being the same as those for the birth grant) paid from the date of the child's birth to the last day of the month preceding their third birthday. To qualify for the allowance it is necessary to submit to a compulsory medical examination within eight days of the birth of the child and during the child's ninth and 24th months.
In the case of adoption, the basic allowance is paid during the three years following the child's arrival, provided that the child is under 20 years of age. The amount of the allowance is €185.54 per month.
3) Shared child-rearing benefit (PreParE)/ Supplement for free choice of working time (CLCA))* and optional supplement for free choice of working time (COLCA)
The shared child-rearing benefit (granted for children born or adopted from 2015) and the supplement for free choice of working time (granted for children born or adopted prior to 2015) are not means-tested and are intended to allow a parent to stop working or work less in order to look after their child. These are paid either as a separate benefit or, when the parent fulfils the income conditions, on top of the basic allowance. It is payable as of the first child and is conditional on the parent having worked for at least two years during a given period which will depend on the child's order of birth in relation to their siblings.
Families with at least three children, whose last child was born or adopted after 1st July 2006 and with one parent who has given up work to look after the child, can opt for the optional supplement for free choice of activity (COLCA). The COLCA is paid on the condition that one parent gives up work completely. This benefit is higher than the PreParE/ CLCA but of shorter duration.
To qualify for either of these benefits, the parent must have worked during the full two-year period preceding the birth of a first child, during two years of the four-year period preceding the birth of a second child or during two years of the five-year period preceding the birth of a third child or any additional children.
Duration of benefits:
The shared child-rearing benefit (PreParE) is paid to each parent for six months for a first child, 24 months to each parent for a second child and 48 months for any additional children.
The supplement for free choice of working time (CLCA) is paid for six months for a first child and up to the third birthday for a second child and any additional children. When the parents have opted for the COLCA, the allowance is paid for a period of one year.
The monthly amount of the PreParE/ CLCA comes to:
392.48 € at the full rate (total cessation of work)
253.72 € at the partial rate when a parent cuts back to a maximum of 50% of the legal work week;
146.36 € at the partial rate when a parent cuts back to between 50% and 80% of the legal work week.
The COLCA comes to 641.53 € for children born or adopted from 1st April 2014.
For adopted children, the supplement for free choice of working time is paid for a minimum period of one year - even for children over three - and up to the age of 20.
*The supplement for free choice of working time (CLCA) only applies to children born or adopted prior to 1st January 2015.
4) Supplement for free choice of childcare
The supplement for free choice of childcare is paid to a couple or parent using the services of a registered childminder or a childminder in the home to care for a child under age 6. It is awarded either as a separate benefit or, if the parent(s) fulfil(s) the income conditions, on top of the basic allowance.
The benefit is made up of two different components: a component covering part of the childminder's wage