Parental allowance
What is parental allowance?
Parental allowance is financial support for parents who take a career break or reduce their working hours after the birth or adoption of their child. It is intended to help offset the loss of income and provide parents with financial security.
Parents who as a rule were in employment for at least one year before the birth or adoption of the child are entitled to parental allowance. The amount depends on the parents’ income and is as a rule between 65% and 67% of the average net income of the last 12 months before the birth or adoption of the child. Parental allowance can be claimed for a maximum of 14 months.
It is important to note that parental allowance and parental leave are two different things. During parental leave, parents may stay away from work unpaid, whereas parental allowance is financial support for parents who reduce their working hours or take a break in order to look after their child.
How long is parental allowance paid?
Parental allowance is as a rule paid for a maximum of 14 months. There are two models of entitlement: Basiselterngeld (basic parental allowance) and Elterngeld Plus (parental allowance plus).
Basic parental allowance can be claimed for a maximum of 12 months and is as a rule 65% of the average net income of the last 12 months before the birth or adoption of the child. If income is below a certain amount, basic parental allowance can also amount to up to 100% of net income.
Elterngeld Plus enables parents to receive the benefits of basic parental allowance over a period of 24 months, but at half the amount. This allows parents to work part-time for longer while still receiving parental allowance.
It is important to note that parental allowance can be taken by both parents and that the maximum entitlement period of 14 months can be shared between both parents.
Are foreign skilled workers also entitled?
Yes, families of international skilled workers can also apply for parental allowance in Germany if they meet the relevant requirements. For entitlement to parental allowance it is not necessary that the parents are German citizens or were born in Germany.
Parental allowance in Germany is paid to parents who were in employment before the birth or adoption of their child and who after the birth take a break or reduce their working hours. This also includes foreign skilled workers who work in Germany.
It is important to note, however, that the amount of parental allowance depends on the parents’ income and that the calculation for foreign skilled workers may differ if they worked in their home country or in another country before the birth of the child. In that case, other proof of income may need to be submitted.
It is advisable to find out in advance from the competent Elterngeldstelle (parental allowance office) or an advice centre and, where appropriate, to seek individual advice.
How much parental allowance does one receive?
The amount of parental allowance is as a rule based on the average net income of the last twelve months before the birth or adoption of the child. It is as a rule between 65% and 67% of net income. There is an upper limit of 2,770 euros and a minimum of 300 euros.
The calculation of parental allowance is somewhat more complex and depends on various factors. It is calculated on the basis of the average net income of the last twelve months before the birth or adoption of the child. Only income from employment is taken into account, for example income from an employment relationship or as a self-employed person. Income from capital assets or from letting and leasing is not taken into account.
In the calculation of parental allowance, flat rates and allowances that can reduce net income are also taken into account. There is also a minimum amount and a maximum amount that limit parental allowance.
It is important to note that parental allowance is calculated individually and depends on various factors. It is advisable to seek individual advice in advance from the competent parental allowance office or an advice centre.
How and where is parental allowance applied for?
Parental allowance can be applied for at the competent parental allowance office. As a rule the parental allowance office is based at the respective district or city administration.
There are various ways to submit an application for parental allowance:
- Online application: Many parental allowance offices offer the option of completing and submitting the application online.
- Application form: The application can also be submitted in writing by post or in person at the competent parental allowance office. An application form is available for this, which must be completed and signed.
- Personal advice: It is also possible to seek personal advice at the competent parental allowance office and to submit the application on site.
When applying, various documents must be submitted, such as a birth certificate or adoption certificate, employment contracts and payslips for the last twelve months before the birth or adoption of the child, as well as the tax identification number.
It is advisable to submit the application for parental allowance early, as processing can take several weeks depending on the parental allowance office and the volume of documents.