Everything you need to know about the Baby and Child Bonuses

6 min read

We’ve already talked about the government cashback initiatives, but have you heard about the bonuses for families with children? Under the 2021 Budget Law, the government promoted a series of bonuses to help out families with kids. If you’re about to become a parent or have already welcomed a little one, the two bonuses you want to look out for are known as the Baby Bonus and the Child Bonus. We’ve done some research and prepared a quick guide to explain these programs. Read on to find out if you’re eligible and how you can claim your bonus.

What’s the difference between the Baby Bonus and the Child Bonus? 

The 2021 Baby Bonus—also known as the Childbirth Allowance—is an allowance system currently in effect, in the form of an allowance paid every month from the time a child is born until their first birthday, or for one year after the family adopts the child or takes them into pre-adoption foster care.

The Child Bonus, or Single Family Allowance, will eventually become the only support measure in place for families. The government initially intended to enact the Bonus in July 2021, however, this has recently been delayed until January 2022. The aim is to streamline the framework of family initiatives currently in place by merging and simplifying them. The Child Bonus is a grant paid until the dependent child’s 21st birthday and will replace, among other measures, the Baby Bonus in 2022.

2021 Baby Bonus—how is it claimed and how long does it last? 

The Baby Bonus (aka the Childbirth Allowance) is a monthly allowance that families may claim for each child in their care, including newborns, adopted children, or those in pre-adoption foster care.

How long does the benefit last? About a year, until the child’s first birthday or one year after the family adopts the child.

How much can be claimed under the 2021 Baby Bonus? The allowance ranges from €80 to €160 euro per month for first children, based on the ISEE requirements of the beneficiaries. The rate then increases by 20% for all children subsequently born, adopted, or taken into pre-adoption foster care.

Who can claim the Baby Bonus? This allowance is for Italian citizens, EU citizens, and non-EU citizens with a valid Italian residence permit. Any person or family who has had a birth, adopted a child, or taken a child into pre-adoptive foster care in 2020 or 2021 is eligible for the Baby Bonus. Unlike in previous years, claimants will no longer be subjected to an income cap when claiming the bonus.

Italian citizens who will be eligible include: 

  • All workers who earn income from employment, for an indefinite or fixed term

  • Who are self-employed or pay VAT

  • Single parents with children for which allowances are paid

EU and non-EU citizens must meet certain criteria to claim the Baby Bonus:

  • Reside in Italy

  • Live with the child in question

  • Be a citizen of an EU state or possess a valid residency permit if you’re a citizen of a non-EU state

When can I apply for the Baby Bonus? Applications for the Baby Bonus can be submitted from January 1, 2021 to December 31, 2021. In the case of biological birth, you can submit your application after the seventh month of pregnancy but ideally no later than 90 days after birth. In the case of adoption or pre-adoptive foster care, you can submit it after the adoption process is complete. For applications submitted after 90 days, the bonus will be paid starting from the month in which the application was submitted (and not from the month of birth).

How to apply for the Baby Bonus

You can submit the application for the Baby Bonus through:

The application must be submitted once for each child, even in cases of multiple births or adoptions—for example, if you have twins, you have to submit two separate applications.

For more information on the 2021 Baby Bonus and the full text of the INPS message, please visit the INPS website.

How does the Child Bonus work and when does it start?

How long does the benefit last? The Child Bonus starts from the 7th month of pregnancy and will cover the child up to their 21st birthday. This period can be extended if the child is disabled. In the case of children who are over 18 but still dependent on their parents, the family won’t receive the full bonus, but rather a fraction of the bonus until the child turns 21.

How much is the Child Bonus worth? You can receive up to €250 from the Child Bonus, with an increase between 30% and 50% in the event of disability. This will be paid in the form of a tax credit or on a monthly basis, based on your ISEE threshold. With every additional child after the second-born, the amount of the Child Bonus increases.

Who is eligible for the Child Bonus? Any person or family with children can claim the Child Bonus.

How to apply for the Child Bonus 

You’ll have to wait until next year before submitting your application for the Child Bonus, as it won’t go into effect until January 22.

Once in place, the Child Bonus will streamline the overall framework of family support grants. The single allowance will cover and therefore replace:

  • Tax deductions for dependent children. These deductions are currently not accessible to low-income families who aren't subject to personal income tax (IRPEF)

  •  Allowances granted to families, from which self-employed people had previously been excluded

  • Allowances granted to large families

  • The Baby Bonus, the birth premium for mothers (aka the Mother Tomorrow Bonus), and the Birth Support Fund for loan guarantees

For more information, please visit the Department for Family Policies page.

Save up for your goals with N26 

Bottles, diapers, onesies, and a thousand other extra expenses—even with family bonuses, the costs of raising a baby can really add up. Do your little one a favor by taking control of your finances while they’re young. N26 is 100% digital, so you can access your money anytime, anywhere, straight from your smartphone. With Spaces, you can create up to 10 sub-accounts that sit alongside your main account. Give your space a name and set your own savings goal, and start setting money aside. Use Rules and Round-Ups to transfer money automatically, or do it manually with a simple drag-and-drop. Ready to get started? Check out our plans now and find the one that's right for you.

And if you want to know more about the costs associated with the arrival of a child, take a look at our guide, How much does it cost to have a baby?.

By N26

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