This thesis deals with the issue of family benefits coordination in the European Union in the context of possibility of its indexation, i.e. tying its amount to the standard of living in a specific country where family members reside. The first part of the thesis sets out an overview of the family benefits coordination system in the European Union. A detailed analysis of the legal foundation of the family benefits coordination set out in the Regulation No. 883/2003 clarifies the nature of the benefits and its purpose in order to discuss the benefits of this system, it further defines the term a family member, which, often, leads to disagreements precisely because of the fact that each national legislation determines who is considered a family member. There are frequent situations where the right to benefits can be realised based on the legislation of two or more Member States, however, as set out in this thesis, Regulation No. 883/2004 regulates such situations and prescribes rules in case of overlapping benefits, and, finally, a short overview of the child benefit as the only benefit in the Republic of Croatia which is coordinated according to these rules. More and more states show a tendency and an aspiration to amend Regulation No. 883/2004 that certain family benefits may be indexed, or that is to say, tie it with the standard of living of a paying Member State. This is precisely the topic of the second part of this thesis, an analysis of how Austria with the change of its government in 2018 and amendment of its law in 2019 implemented a mechanism of adjustment of family benefits in cases where children of migrant workers resided in another Member State. Shortly after such amendment, a Committee submitted a claim against the Republic of Austria, and the thesis analyses in detail an opinion of an independent lawyer and Court’s judgement.