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Germany plans first parental allowance hike since 2007, minimum rising to EUR330
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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.
Source report
Ein Baby greift mit den Fingern nach seinem Fuß. Quelle: Fabian Strauch/dpa
According to plans by Federal Family Minister Karin Prien, parental allowance (Elterngeld) will not be reduced to a twelve-month payment period after all. Instead, the minimum rate is set to be increased for the first time since the benefit was introduced in 2007.
Following long discussions about possible cuts to parental allowance, mothers and fathers can expect more money in the future. For the first time since its introduction in 2007, parental allowance is to be increased.
Under the Federal Family Ministry's plans, the minimum rate is to rise from 300 to 330 euros, and the maximum rate from 1,800 to 1,900 euros, as the ministry announced in Berlin. A corresponding draft bill has entered internal government coordination. Nothing has been decided yet, but the key points appear to be settled.
Reduction of Payment Period Off the Table
Family Minister Karin Prien (CDU) told the German Press Agency (dpa) that the coalition had achieved a good solution for parental allowance. "We have agreed to develop parental allowance structurally and to adapt it better to the reality of life for young families today. This is how we ensure that starting a family remains attractive for young people in Germany in the future."
In their coalition agreement, the CDU/CSU and SPD had agreed to reform and also increase parental allowance. Under the condition of strict savings targets, Prien then drafted a reform proposal that provided for a reduction of the payment period by two months—from 14 to 12. This triggered criticism. The reduction is now off the table.
The Planned Regulations in Detail:
- The 14-month base parental allowance remains in place if both parents each take at least four months, with the remaining six months able to be divided flexibly between them. Single parents can also continue to receive parental allowance for up to 14 months.
- In the first four months of receipt each, both parents will receive more: in future, 80 percent of net earnings before birth, but only 50 percent for each additional month. Previously, base parental allowance generally provided around 65 percent of net earnings for each month. In future, Christmas bonuses and other additional payments are also to be included in the net calculation.
- According to the ministry, this will make it financially more attractive for fathers to take an active role in the early family phase. This creates "a real boost for more partnership."
- Both parents are to be able to receive parental allowance simultaneously without restriction again—for example, jointly for the first four months. After the last reform, this had been restricted; parents could only receive base parental allowance simultaneously for one month within the child's first year of life.
- The sibling bonus for families—a supplement to parental allowance when other children live in the household—is to be paid for longer.
- Administrative effort is to be reduced so that parental allowance reaches parents more quickly.
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Prien said: "We are deliberately sending a signal to young families: We support you. Beyond that, however, the draft also keeps our budget in mind, so as not to burden taxpayers more every year. That too is part of our responsibility."
Federal Government Paid Around 7 Billion Euros in Parental Allowance in 2025
Parental allowance has existed since 2007 as income replacement for mothers and fathers when they take time off work for childcare. In 2025, around seven billion euros were spent on parental allowance, with 1.6 million recipients. In 2021, according to the federal government, the figure was still more than 1.8 million. In 2024, 290,105 people received the maximum amount and 349,157 the minimum rate.
Experts consider a reform overdue. Due to the lack of inflation adjustment, the benefit has lost around 38 percent of its purchasing power since its introduction, a study by the German Economic Institute (Institut der deutschen Wirtschaft) showed. When the reform is to take effect remains open.
dpa/ll/saha
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Germany Plans First Parental Allowance Increase Since 2007, Keeps 14-Month Payment Period