Child credits can be seen as contributions paid by the government, as outlined below, which credits would be keyed in for retirement pension claims to fill in gaps and increase the contribution average, hence, better the pension rate. Child credits are credited independently of income gained.
With effect from 1st January 2016, for mothers born between 1952 and 1961, both years included, who would have terminated employment from birth of child up to a maximum of six years of age of child, for child rearing, are entitled to two years of child credits per child. These credits (up to the third child) (two years of child credits per child) are awarded, irrespective of whether the parent would have resumed employment.
However, in case of a parent having more than three children, such parent would be entitled to one year of child credit from the 4th child onwards, provided that s/he would have worked at least for a year prior retirement age. For example, in case of a parent who would have had the fourth child and worked and paid 40 contributions, prior retirement age, only 40 credits will be awarded to the parent in view of the fourth child.
In case of a disabled child, the same conditions apply but the parent would be awarded with four years of child credits instead of two years.