Last adjusted in 2012Luxembourg's private crèches grapple with €6 hourly rate

RTL Today
In Luxembourg, every child is entitled to 20 hours of free crèche care per week. However, the hourly rate for this service has not been adjusted for eleven years, despite the impacts of inflation and wage indexations.

This static rate presents a significant challenge for private crèches operating in the country.

Véronique Glaesener, who owns three crèches employing thirty staff members, faces financial difficulties despite having children enrolled in her facilities. She explains, “we have around €15,000 to €20,000 more in costs than before. This is partly due to staff costs, loans, food… everything has just gone up a bit.”

The €6 hourly rate for the 20 hours of free childcare per week also serves as the basis for parents’ financial contributions through the childcare service voucher scheme and calculating overtime. Private crèches typically charge parents an additional fee, with Glaesener’s crèche implementing a €2.50 per hour supplement since 2022. While there is consideration to increase this fee, the owner is hesitating due to concerns about parents’ financial constraints and competition with publicly funded crèches. In fact, privately-owned facilities cost parents an extra €400 per month, making them less competitive.

Sector calls for more sustainable solutions

The Luxembourg Federation of Education and Childcare Services (FELSEA) takes a more balanced stance, recognising the importance of private crèches in the market. Paolo Fiorucci, vice-president of FELSEA, emphasises the appeal of private crèches for parents seeking a “unique and flexible” experience. He believes that the current €6 rate does not pose a significant issue.

While adjusting the rate could offer some relief for parents, the sector as a whole requires a more sustainable solution, ideally offering greater flexibility to react swiftly during crises.

State funding for private crèches?

Minister of Education Claude Meisch goes further and wonders whether private crèches might not be able to obtain state funding for themselves: “We already monitor them today to ensure that they are working properly from an educational point of view, so perhaps we could also get them to operate legally and economically in a way that is a little closer to that of the publicly funded crèches,” says Claude Meisch.

However, any changes are likely a matter for the next government. As it stands, the €6 hourly rate is unlikely to see immediate adjustments, leaving struggling crèches with little recourse but to pass on the costs of inflation to parents.

Full report by RTL Télé (in Luxembourgish)

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