Wide variation in child-care institution fees

The amount parents pay for a place in a municipal day nursery (child-care centre) varies widely in Norway. The differences are the greatest for families with low incomes, although the fees paid by high-income families also vary. Part of the explanation for the differences between the municipalities is that they have chosen different payment systems.

A family with an annual gross income of NOK 375,000 has to pay over twice as much for a municipal day-care place in Ål compared to Sirdal. Stord is the most expensive for families with an income of NOK 250,000 and NOK 100,000. (Stord uses net income to calculate payments.)

One hundred and nine of Norway's 435 municipalities and around 100 private day nurseries are included in the household payment survey conducted by Statistics Norway for the Ministry of Children and Family Affairs. The survey covers more than 60 per cent of Norway's day-care places.

Monthly rates vary by NOK 2,000

If the annual payment is divided over 11 months, monthly rates vary from NOK 1,181 to 3,300 for families with an income of NOK 250,000. For families with an income of NOK 375,000 the payment varies from NOK 1,885 in the least expensive municipality to NOK 3,920 in the most expensive. Ten municipalities offer free day care for families with an income of NOK 100,000. Food money often comes in addition to the monthly rates.

Having children in day care takes a large portion of parents' income. Families with an annual income of NOK 375,000 and a whole-day place in a municipal child-care centre currently pay an average of eight per cent of their income for the place. Families with the same income and two children in day care pay almost 13 per cent of their income.

All municipalities offer reduced rates for families with two or more children in day care. The reduction for the second child varies from 20 to 50 per cent.

New Statistics
Household payment in kindergartens, 2nd half 1998.
The statistics are published in the Weekly Bulletin of Statistics in May and November each year. The survey is conducted for the Ministry of Children and Family Affairs. For more information, contact: Kari-Anne.Hovland@ssb.no, tel. +47 21 09 47 22 or Frode.Bendiksen@ssb.no, tel. +47 21 09 44 27.

Weekly Bulletin issue no. 45, 1998