Granny’s- do they actually contribute to the activation of women in the labor market?
In a world where changing demographic realities are throwing new challenges at social welfare systems, one of the most innovative ideas of the newly appointed government has been the introduction of the so-called “granny benefit” – a special financial benefit dedicated to parents of the youngest children. , a special financial benefit dedicated to parents of the youngest children. The name may evoke warm associations, suggesting direct financial support for grandparents. However, on closer examination of the program’s assumptions, it turns out that the reality is somewhat different, and the name itself can be somewhat misleading. , “Granny’s” although named in a way that suggests support for grandmothers and grandfathers, does not in fact provide for the direct transfer of money to seniors’ budgets. Instead, the program is aimed at supporting families with children, with the main goal of relieving parents of the costs associated with childcare. As a result, while the idea may seem to promote direct support for grandparents, the actual beneficiary of the benefit is the parents. So let’s take a look at how the state budget allocation for this benefit is shaping up in the face of current economic and demographic challenges, which social groups will benefit most from the introduction of this support, and what the long-term effects on society as a whole might be. Is “granny” a step towards the recognition of informal care work, or rather temporary financial assistance?
A new answer to Poland’s demographic crisis
Recent studies leave no illusions: Poland is experiencing a significant demographic decline, which has long-term consequences for society, the economy and the social welfare system. Despite the introduction of various family support programs, such as the famous 500+ benefit, the problem of low birth rates remains unresolved. In response to these challenges, the government is proposing an innovative new solution – the ” granny” benefit. The benefit is a proposal that could help increase the birth rate by offering additional support to those who decide to expand their families. However, the effectiveness of the , ” granny” benefit in terms of women’s labor activation will depend on a number of factors, including the final amount of the benefit, the availability of places in childcare institutions, and whether the benefit is part of a broader package of policies supporting families and gender equality in the labor market. It will also be important how the project is received and implemented in practice, as well as what the long-term effects of its operation will be.
In the state budget for 2024, 1.5 billion zlotys were set aside for “granny benefits”. According to the simplest calculation, it follows that 18 thousand zlotys per year would give more than 800 thousand allowances. Due to the fact that children are born about 300 thousand a year, this amount would be enough for a benefit for each child born this year and two years earlier. This, in turn, means that either all parents without exception – including those who are already working both – will get the “”granny””, or its amount may eventually be higher.
According to information from the Ministry of Family Affairs, the “granny’s” will begin to be paid in the third quarter of 2024. This means that we can expect the first payments of the benefit as early as July 1, and as late as September 1 at the latest.
Key assumptions and conditions
The ” granny” benefit, although the name does not necessarily reflect the full assumptions and conditions of the project, is intended to allow parents to return to work while child care remains in the hands of trusted family members. However, the condition for granting the benefit is not that the child must be placed in the care of grandparents or immediate family. The draft benefit envisages granting families financial support of PLN 1,500 per month, which is intended to make it easier for mothers to return to work after maternity or parental leave. A key element of the idea is flexibility in the use of the funds, meaning that the money does not have to be paid directly to grandparents caring for grandchildren. Instead, the benefit can be used to cover costs related to child care, such as paying for a sitter, nursery or kindergarten. This assumption is primarily aimed at giving parents, especially mothers, more freedom to plan their return to working life, without being restricted to the traditional family care model.
Although the , ” granny” benefit presents itself as a significant support for families, it is subject to a number of conditions aimed at directing assistance to where it is needed most, and ensuring that the program achieves its social and economic goals. Here are the key criteria that must be met for a family to benefit from this support:
- Age of child – The benefit is available to families with children up to the age of 3. This condition underscores the program’s goal of supporting parents, especially mothers, during the first years of a child’s life, recognizing this time as crucial for both the toddler’s development and care needs.
- Getting mothers to work – One of the main goals of the program is to support mothers in returning to work after maternity leave ends. This means that in order to qualify for the benefit, the mother must start a new job or return to the job she interrupted due to the birth of her child or parenting. This condition is intended to promote labor force participation among mothers and ensure that the financial support will contribute to their economic independence.
- Amount of income – Another important criterion is the mother’s income level. In order to qualify for the benefit, the mother must earn at least the minimum wage, which as of January 1, 2024, is PLN 4242 gross, rising to PLN 4,300 as of July. This regulation is intended to target support to those families where mothers are actively participating in the labor market, while ensuring that the program supports those who may be most in need of financial support for childcare costs.
Summary
The project of the , ” granny” benefit has a real chance to become an important element in the public space and be effectively used by parents, especially young mothers. This initiative, by providing additional financial support to families with young children, has the potential for significant labor activation of women after maternity leave. A key aspect through which this benefit can contribute to greater labor activation is the reduction of the economic barrier posed by childcare costs. As a result, young mothers will have more freedom to plan their careers without having to choose between professional development and motherhood.
In addition, the project could prove to be a milestone in shaping a situation in which the decision to start a family is no longer so strongly postponed for fear of a potential career downfall. The provision of stable financial support can ease mothers’ fears about returning to work, giving them confidence that they won’t have to forgo career advancement for lack of adequate childcare. This, in turn, can have a positive impact on family planning decisions, helping to improve the country’s demographics.
However, for the project to realize its full potential, it also seems necessary to regulate single fathers, as well as the possibility of claiming the benefit in cases where it is the father who decides to return to work and needs support in caring for the child. Expanding the benefit to include such cases would emphasize its universal nature and equal opportunity to access support for all parents, regardless of gender. The legislature faces the challenge of regulating these aspects in a clear and precise manner, eliminating any ambiguity and ensuring that the benefit is available to all who meet certain conditions. Taking care to regulate these issues in detail will not only increase the effectiveness of the program, but will also contribute to building a more inclusive and equitable social policy that responds to the real needs of society. In this way, the ” granny” benefit can become an important tool to support families and contribute to a better balance between work and family life in Poland.
Authors

Katarzyna Hiller
Partner, Attorney at Law, Compliance Officer, LL.M. in International Commercial Law
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