How exactly does the Child allowance work in Guyana payrolls?
The Child Allowance is a tax benefit for parents or guardians that lowers the PAYE to reduce the amount of Income Tax in order to increase the net-pay.
Employees claiming the Child Allowance must complete a Child Deduction Claim Form (attached) and submit it along with the required supporting documentation to their employer.
Definitions & Procedure:
- Annual allowance in 2025: GYD 120,000 per child under 18 years old (maximum GYD 10,000 per month).
- The allowance is applied monthly, based on the employee’s pay period.
- Only one person (one of the parents or guardians) may claim the allowance for each child.
- Eligible claimants include parents, stepparents, adoptive parents, guardians, or anyone raising the child as their own.
- Eligible children include biological children, stepchildren, legally adopted children, or any child treated as part of the family.
- The form attached is also available on the GRA website: www.gra.gov.gy
In order to be able to apply this Child allowance, first the child(ren) information must be entered in Celery in the refering employee under Family. The Child allowance is NOT applied automatically in Celery.
So secondly, the Child Allowance must be enabled manually.
You can enable this allowance in the referring employee (under Taxes And Premiums/Child allowance).