Creation of the early childhood benefit (PAJE)

Article 60 of the 2004 Social Security Financing Act rewrites Title III of Book V of the Social Security Code and creates the early childhood benefit (PAJE). It comprises a birth or adoption grant and a basic allowance, both means-tested, a supplement for the parent who stops or reduces work, and a childcare supplement. It replaces the young child allowance, the adoption allowance, the parental education allowance, the home childcare allowance and the aid for employing a registered childminder for children born or adopted from 1 January 2004. Decree No. 2003-1394 of 31 December 2003 sets the grant at 229.75% and the basic allowance at 45.95% of the monthly family allowance base, until the child turns three.