Germany Plans First Parental Allowance Increase Since 2007, Keeps 14-Month Payment Period
Germany's Federal Family Ministry, led by Karin Prien (CDU), has drafted a reform raising parental allowance for the first time since its 2007 introduction, lifting the minimum rate from 300 to 330 euros and the maximum from 1,800 to 1,900 euros. A previously floated cut of the payment period from 14 to 12 months has been dropped. Under the plan, each parent receives 80 percent of pre-birth net income for four reserved months and 50 percent for additional months, replacing the current roughly 65 percent. The draft is in internal government consultation, with the effective date still open.
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Prien's Parental Allowance Reform Puts Fathers on the Hook
German Family Minister Karin Prien is proposing a reform to parental allowance (Elterngeld), raising benefits for the first time since 2007 while keeping the total entitlement at 14 months. Under the draft 4-6-4 model, each parent receives four months at 80 percent of net income, with the remaining six months freely distributable at a 50 percent replacement rate. To claim the full benefit, both parents must now take four months of parental leave instead of two, creating stronger financial incentives for fathers to participate in childcare. The taz commentary argues this could drive real social change toward greater partnership in parenting. However, critics warn that the lower 50 percent replacement rate over six months would mean real losses for low-income families, and a petition against the cuts has gathered over 200,000 signatures in days. The author contends that skeptics who say fathers will not change should not be given a pass, since Prien has now set concrete incentives for fathers to double their leave.
Germany Plans First Parental Allowance Increase in Nearly 20 Years
Germany's Federal Ministry for Family Affairs is planning the first increase in parental allowance (Elterngeld) since the benefit was introduced nearly twenty years ago. According to a draft bill, the minimum monthly rate would rise to 330 euros and the maximum to 1,900 euros. The draft is now being coordinated within the federal government, but it remains unclear when the higher rates would take effect. The proposal marks the first adjustment to the benefit in almost two decades, though no timeline for implementation has been set.
Read sourceGermany Reverses Parental Allowance Cuts, Keeps 14-Month Payment Period
The German federal government has reversed its plans to cut parental allowance (Elterngeld), according to a draft from the Federal Family Ministry obtained by the Evangelischer Pressedienst on Wednesday. The maximum payment period of 14 months will be retained, after a reduction to 12 months was announced in the summer and drew widespread criticism. Under the new draft, four months would be reserved for each parent, with the remaining six months freely distributable; previously each parent needed at least two months for the full 14-month period. In the reserved months, 80 percent of prior net income would be paid, while other months would pay 50 percent, compared with the current standard of 65 percent. The minimum amount would rise from 300 to 330 euros and the maximum from 1,800 to 1,900 euros, as previously planned. The ministry says the goal is to make parental allowance more partnership-oriented, financially attractive, and simpler, making it more attractive for fathers to take an active role. Family Minister Karin Prien (CDU) had said in late September she would reconsider her savings plans.
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Germany Plans First Parental Allowance Increase Since 2007
Germany's Federal Family Ministry is planning the first increase in parental allowance (Elterngeld) since its introduction in 2007. Under the draft bill now in inter-ministerial consultation, the minimum rate would rise from 300 to 330 euros and the maximum from 1,800 to 1,900 euros. A previously proposed cut to the payment period, from 14 to 12 months, has been dropped. The reform keeps 14 months of basic parental allowance when both parents each take at least four months, and allows both parents to claim simultaneously without restriction again. In the first four months each parent would receive 80 percent of prior net income, then 50 percent for further months, replacing the current roughly 65 percent per month; Christmas bonuses and other pay components would be included in the net calculation. The sibling bonus would be paid longer and administrative procedures simplified. Family Minister Karin Prien (CDU) said the coalition agreed on a good solution to make parental allowance fit modern family life. The government spent about 7 billion euros on parental allowance in 2025 for 1.6 million recipients. Experts say reform is overdue, as the benefit has lost roughly 38 percent of purchasing power since 2007. The effective date remains open.
Read sourceGermany Plans First Parental Allowance Increase Since 2007
Germany's Family Ministry, under Minister Karin Prien (CDU), plans to raise parental allowance (Elterngeld) for the first time since its 2007 introduction, lifting the minimum rate from 300 to 330 euros and the maximum from 1,800 to 1,900 euros, according to a draft law now in internal government consultation. A previously floated cut of the benefit period from 14 to 12 months has been dropped. Under the plan, both parents would receive 80 percent of pre-birth net income for their first four benefit months and 50 percent thereafter, replacing the current roughly 65 percent per month; Christmas bonuses and other pay would count in net calculations. Parents could again take benefits simultaneously without restriction, the sibling bonus would be paid longer, and administrative burden reduced. Prien said the coalition agreed on a good solution to keep family founding attractive while respecting budget constraints. About 7 billion euros was spent on Elterngeld in 2025 for 1.6 million recipients. Experts note the benefit has lost roughly 38 percent of purchasing power since introduction. The reform's effective date remains open.