More and more parents are receiving Parental Allowance Plus, which is paid out over a longer period of time. It is particularly suitable for part-time situations. From April onwards, regular parental allowance will only be available for one month for both parents at the same time.
Since its introduction, longer parental allowance, better known as Parental Allowance Plus, has been in increasing demand. According to the Federal Statistical Office, 614,000 eligible people planned to take advantage of Parental Allowance Plus last year. This corresponds to 40.9 percent of mothers and 17.7 percent of fathers. This means that the proportion of recipients has almost doubled since its introduction in 2016. At that time, 20.1 percent of mothers and 8.2 percent of fathers decided to do so.
The parental allowance is usually 67 percent of the monthly net income from the previous year, but at least 300 euros and a maximum of 1,800 euros per month. With Parental Allowance Plus, the amounts are halved, but you can receive it for twice as long. Parental Allowance Plus can be particularly worthwhile for parents who work part-time.
Only a quarter of fathers receive parental allowance
According to the Federal Statistical Office, fathers have consistently claimed an average of 3.7 months of parental allowance for years. The average duration of parental allowance for mothers, however, is continuously increasing, in recent years from 14.3 months in 2019 to 14.8 months in 2023. Last year, 1.8 million women and men received parental allowance, the proportion of fathers remains unchanged at around 26 percent .
In 2023, Saxony was the leader in the national comparison with a proportion of fathers of 30.1 percent, followed by Baden-Württemberg (28.4 percent), Bavaria (28.2 percent) and Thuringia (28.1 percent). The value was lowest in Saarland at 20.4 percent.
Shorter simultaneous subscription for newborns from April
In April, two regulations regarding regular parental allowance will also change. Simultaneous receipt for both parents will be restricted, and parental allowance will only be paid for couples with a taxable annual income of up to 200,000 euros. Parents whose children are born after April 1, 2024 will only receive parental allowance for one month at the same time – up to the child’s twelfth month of life.
Currently, both parents can receive parental allowance at the same time for six months if they do not work at all or work part-time. If you work part-time (24 to 32 hours per week) for two to four additional months at the same time, you will receive this as a partnership bonus. After the birth of multiples or premature babies and for parents of children with a disability, the current regulations remain, according to which couples can continue to receive parental allowance for several months at the same time.
The upper limit will be significantly lowered
Previously, the upper limit for couples was a taxable annual income of up to 300,000 euros. One year later, on April 1, 2025, the upper limit will be lowered further to 175,000 euros. For single parents, the previous income limit of 250,000 euros, as well as for couples, will drop to 200,000 euros on April 1st and to 175,000 next year. The taxable annual income is the income that is taxable after deducting business expenses, allowances and other expenses.
The reason for the lowering of the income limits was savings requirements for the 2024 federal budget. According to the Federal Ministry for Family Affairs, around 0.5 percent of parents will be affected by the first reduction. At almost eight billion euros, parental allowance is the largest expenditure item in the federal family budget of 14 billion euros. According to the ministry, from 2026 onwards, 250 million euros will be saved per year by lowering the income limits.