---
title: "How to configure the child allowance earnings item? (AO)"
slug: "1664290576"
tags: ["Allowances"]
updated: 2026-09-22T11:41:58Z
published: 2026-09-22T11:41:58Z
canonical: "help.ila.cegid.com/1664290576"
stale: true
---

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# How to configure the child allowance earnings item? (AO)

- [ ] PT
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- [x] AO
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- [ ] MZ

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---

The child allowance is a **specific earnings item** intended to offset the increased family expenses resulting from the education of the children of the covered employees and pensioners.

For the child allowance earnings item to be calculated **per dependent**, you must complete the following settings:

**1. Comply with Minimum Monthly Amounts**

The Child Allowance earnings item has a **unit value multiplied by the number of eligible dependents.** According to Article 23 of Presidential Decree No. 95/26, of May 22, there are **minimum monthly amounts** to be received **per child**, although employers may pay amounts above the minimum limits set out here:

- Kz **2,400.00** per child, for employees and pensioners with earnings or pensions **up to five times the national minimum wage;**
- Kz **1,500.00** per child, for employees and pensioners with earnings or pensions **greater than five and less than or equal to 10 national minimum wages;**
- Kz **900.00** per child, for insured persons and pensioners with earnings or pensions **above 10 times the minimum wage.**

The law refers to **earnings. It did not use the term base earnings**. This means the **total gross earnings** must be considered, i.e., the total amount of regular and periodic monetary payments, not just the base earnings. **Excluded are:**

- **indemnity-type payments** (per diem allowances, representation expenses);
- **payments of a merely occasional or non-regular nature**, since they are not part of the definition of earnings set out in the General Labor Law.

**2. Configure the Earnings Item**

You must set the earnings item used to pay the Child Allowance with the type **Unit value per dependent**, and, in the **Dependents' age range** field, enter the **ages** between which dependents are considered eligible for this earnings item. This means it must be set **between 0 and 18**, since the right to the child allowance **ends** when the child turns **18 years old.**

Using the **Maximum no. of dependents** field, you can set the number of dependents up to which the child allowance should be paid. The **maximum limit set** (Article 25, No. 3) corresponds to **five dependents.**

**3. Add Information to the Employee's Record**

- In the employee's record, you must fill in the **no. of dependents** on the **Household** tab. You should take into account the dependent's/dependents' **date of birth**, so their age can be calculated and checked against the limits set in the earnings item.
- Enter the relationship as **Descendant**, so they are identified accordingly;
- Enable the household member to be considered in the calculation.

**4. Consider Exemption Limits**

According to Article 2, No. 1 d) of the Labor Income Tax Code, **the following is not subject to taxation**: *the child allowance, paid by the employer, in an amount that* ***does not exceed the maximum limit of 5%*** *of the employee's base monthly salary, excluding employees subject to the public sector compensation regime.*

This means that child allowance amounts paid to employees subject to the public sector compensation regime are **fully exempt**, while amounts paid on this basis to **private sector** employees are only exempt **up to the limit of 5% of their base monthly salary.** So, for **private sector** employees, you must set the child allowance **amount** as **partially exempt** from IRT taxation on the **child allowance earnings item**, on the **Deductions** tab.

Regarding the **IRT** deduction, the **Exemption Limits Configuration** feature is available, which lets you calculate the child allowance amount (both exempt and not exempt from IRT taxation) for private sector employees. To access it, you should:

1. Go to **Tables | Human Resources | Processing Data | Earnings Items;**
2. On the **Deductions** tab, click the "…" option shown next to the **Exemption Limit** column;
3. Enter the formula ***@@VENC@@*0,05/N.º Dependentes*** so the exemption limit is calculated per dependent. This formula takes into account the **number of active dependents in the employee's record** (on the **Household** tab) who fall within the age range limits and the maximum number of dependents specified in the earnings item's configuration.

**5. Assign the Earnings Item**

After making sure the previous settings are in place, you must add the child allowance earnings item on the **Other Postings** tab of the employee's record, and specify the **amount** to be paid per dependent.

During processing, the settings defined will be taken into account, and the **amount associated with the earnings item will be multiplied by the number of active children** whose age falls within what was set in the earnings item's configuration.