Is childcare really $7.00/day?

We hear a lot in BC about Quebec's $7.00/day daycare, but many people don't understand how it works. How can someone possible run a child care centre on $7/day per child??! Who covers the rest?

According to the Government of Quebec Website:


"The reduced-contribution program was implemented for children who are under five years of age. It enables the parents to have access to childcare services in return for a daily reduced contribution which includes a basic contribution of $7.55 and, if applicable, an additional parental contribution varying according to the family income.

Modulation of the parental contribution
Since April 22, 2015, an additional contribution applies to parents required to pay the basic contribution ($7.55 per day, per child) and whose family income exceeds $50,545.

For families with a family income exceeding $50,545 and not above $75,820, the daily contribution per child will increase from $7.55 to $8.25. For families with a family income exceeding $75,820, the daily rate per child is set at an amount established according to a progressive modulation to reach a maximum amount of $20.70 for a family income of $158,820 or higher.

 

This additional contribution is paid to Revenu Québec  when the tax return is filed. To facilitate payment, the parents who want it can request that their employers increase their payroll deductions accordingly. The additional contribution is added to the basic contribution which remains payable directly to the subsidized childcare service.

Beneficiaries of subsidized childcare services (early childhood centres, daycares or managers of childcare services in a family environment), will give the RL-30 slip to parents required to pay the basic contribution. The slip will be given to them at the latest on February 29 and will enable them to determine the additional contribution payable on their income tax return.

 

The basic contribution and the additional contribution will be indexed annually, effective January 1, 2016. 

Parents who are beneficiaries of the Social Assistance Program or the Social Solidarity Program are eligible for the exemption from payment of the reduced contribution.

 

The reduced-contribution places are provided by childcare centres, subsidized day-care centres and subsidized home childcare providers.

Families (including blended families) with 3 or more children who frequent, during a same year, one or more than one subsidized childcare service for which they are required to pay the base contribution, will pay an additional contribution for 2 children only."

In order to qualify for the reduced contribution space, you have to:

• be a Canadian citizen; 
• be a permanent resident; 
• be staying in Québec for work purposes and hold a work permit; 
• be a foreign student who holds a certificate of acceptance and receives a scholarship granted by the goverment of Québec pursuant to the policy applying to foreign students in Québec colleges and universities; 
• be authorized to stay in Québec under the immigration laws.

There is an online tool here: http://www.budget.finances.gouv.qc.ca/budget/outils/garde-net-en.asp  to help parents calculate their estimated cost of child care.

The $7/day child care program sounds fantastic, but there are just not enough spaces to meet the demand. Many parents are left having to delay their return to work, or choosing to send their child to a private daycare where they will end up paying $40/day.

And who pays the balance? Well...Quebec's income taxes are the highest in all of Canada. See here: http://www.taxtips.ca/taxrates/taxcomparison/tax-comparison-2015.htm

Hopefully we don't have to wait too long to find a space...and luckily we are flexible with days and hours.