Starting a family in Germany comes with a range of financial benefits designed to support parents during the early stages of child-rearing. One of the most significant of these is Elterngeld, or parental allowance. This state-funded benefit aims to compensate for the loss of income when parents take time off work or reduce their working hours to care for their newborn or newly adopted child. Understanding Elterngeld is crucial for international families navigating the German social security system.
1. What Is Elterngeld?
Elterngeld is a financial benefit provided by the German government to support parents during the first months of their child’s life. It is designed to partially replace the income lost when parents take time off work or reduce their working hours to care for their child. The goal is to enable parents to spend more time with their newborns without facing significant financial hardship.
There are three types of Elterngeld:
- Basic Parental Allowance (Basiselterngeld): Available for up to 12 months, or 14 months if both parents share the leave.
- Parental Allowance Plus (ElterngeldPlus): Allows parents to receive benefits over a longer period (up to 24 or 28 months) at a reduced monthly rate, suitable for those working part-time.
- Partnership Bonus (Partnerschaftsbonus): Provides additional months of ElterngeldPlus if both parents work part-time simultaneously.
The amount received depends on the parent’s income prior to the child’s birth, ranging from 65% to 100% of the net income, with a minimum of €300 and a maximum of €1,800 per month.
2. Who Is Eligible for Elterngeld?
Elterngeld is designed to support a wide range of parents, including employees, self-employed individuals, students, and unemployed persons. To qualify for Elterngeld in Germany, you must meet the following criteria:
- Residency and Living Arrangements:
- You must reside in Germany and live in the same household as your child.
- You must personally care for and raise your child.
- Work Restrictions:
- During the period you receive Elterngeld, you are permitted to work up to 32 hours per week.
- Citizenship and Residency Status:
- German citizens, EU/EEA citizens, and individuals with a residence permit that allows them to work in Germany are eligible.
- Non-EU citizens must have a residence permit that permits employment or be in Germany for at least 15 months.
- Income Limits:
- For children born on or after April 1, 2025, the combined taxable annual income of the parents must not exceed €175,000.
It’s important to note that even if you were not employed prior to your child’s birth, you may still be eligible for the minimum Elterngeld amount.
3. Types of Elterngeld: Basic, Plus & Partnership Bonus
Germany offers three main types of parental allowance to accommodate various family and work situations:
Basic Parental Allowance (Basiselterngeld)
- Duration: Up to 12 months for one parent. If both parents share the leave, they can receive a combined total of 14 months.
- Amount: Between €300 and €1,800 per month, depending on the previous net income.
- Eligibility: Parents must reduce or pause their employment to care for their child.
- Note: Basic Parental Allowance can only be claimed during the first 14 months of the child’s life.
Parental Allowance Plus (ElterngeldPlus)
- Purpose: Designed for parents who wish to return to part-time work while still receiving parental benefits.
- Duration: One month of Basic Parental Allowance equals two months of ElterngeldPlus. This allows for a longer benefit period, up to 28 months.
- Amount: Between €150 and €900 per month, which is half the amount of the Basic Parental Allowance.
- Eligibility: Parents working up to 32 hours per week can benefit from this option.
Partnership Bonus (Partnerschaftsbonus)
- Purpose: Encourages both parents to share childcare responsibilities equally while working part-time.
- Benefit: Each parent can receive an additional two to four months of ElterngeldPlus if both work between 24 and 32 hours per week simultaneously during this period.
- Eligibility: Both parents must meet the working hour requirements concurrently. Single parents can also claim the Partnership Bonus if they meet the criteria.
These options provide flexibility for families to choose a plan that best fits their work and childcare needs.
4. How Much Elterngeld Will You Receive?
The amount of Elterngeld you receive depends on your average net income in the 12 months prior to your child’s birth. The benefit is designed to partially compensate for the loss of income when you take time off or reduce your working hours to care for your child.
Calculation of Elterngeld
- Income Replacement Rate: Elterngeld replaces between 65% and 100% of your previous net income.
- For net incomes below €1,000, the replacement rate increases gradually up to 100%.
- For net incomes between €1,000 and €1,200, the replacement rate is 67%.
- For net incomes above €1,200, the replacement rate decreases gradually to 65%.
- Minimum and Maximum Amounts:
- Minimum: €300 per month.
- Maximum: €1,800 per month.
It’s important to note that for the calculation, a maximum net income of €2,770 per month is considered, even if your actual income is higher:
Additional Bonuses
- Sibling Bonus: If you have another child under the age of three, or two or more children under the age of six, you may receive a sibling bonus of 10% of your Elterngeld, with a minimum of €75 per month.
- Multiple Births: For each additional child born (e.g., twins, triplets), you receive an extra €300 per month.
ElterngeldPlus and Part-Time Work
If you choose ElterngeldPlus and return to part-time work (up to 32 hours per week), your income during this period is partially offset against your Elterngeld. This means you can still receive financial support while working reduced hours
Online Calculators
To estimate your specific Elterngeld amount, you can use our Elterngeld-Calculator.
This tool allows you to input your income details and plan your parental leave accordingly.
5. Duration and Flexibility of Elterngeld
Germany’s Elterngeld system is designed to provide financial support to parents while offering flexibility to accommodate various family and work situations. Understanding the duration and options available can help you plan effectively for your family’s needs.
Basic Parental Allowance (Basiselterngeld)
- Duration: Up to 12 months for one parent. If both parents share the leave, they can receive a combined total of 14 months.
- Sharing the Months:
- Each parent must take at least two months to qualify for the additional two months.
- The months can be taken consecutively or alternately.
- Special Cases:
- In the case of premature births, additional months may be granted. For example, if a child is born 12 weeks early, parents can receive three extra months of Basiselterngeld
Parental Allowance Plus (ElterngeldPlus)
- Duration: Each month of Basiselterngeld can be converted into two months of ElterngeldPlus, allowing for up to 24 months of support.
- Flexibility:
- ElterngeldPlus is ideal for parents who wish to return to part-time work (up to 32 hours per week) while still receiving financial support.
- It can be combined with Basiselterngeld to tailor the benefit period to your family’s needs.
Partnership Bonus (Partnerschaftsbonus)
- Additional Support: If both parents work part-time (between 24 and 32 hours per week) simultaneously for at least four consecutive months, they can each receive up to four additional months of ElterngeldPlus.
- Single Parents: Single parents who meet the working hour requirements can also qualify for the Partnership Bonus.
Combining and Interrupting Benefits
- Combining Benefits: Parents can combine Basiselterngeld and ElterngeldPlus to create a customized plan that fits their work and family life.
- Interruptions: It’s possible to interrupt the benefit period or alternate between parents, provided the total duration does not exceed the maximum allowed.
Understanding these options allows families to make informed decisions about balancing work and childcare responsibilities during the early years of their child’s life.
6. How to Apply for Elterngeld
Applying for Elterngeld in Germany involves several steps and requires specific documentation. Understanding the process can help ensure a smooth application experience.
When to Apply
You can apply for Elterngeld only after your child is born. It’s advisable to submit your application as soon as possible, as Elterngeld is paid retroactively for a maximum of three months from the month of application submission. For example, if your child is born on March 8 and you submit your application in July, you will receive Elterngeld starting from April, potentially missing out on benefits for March.
Where to Apply
Elterngeld applications are processed by the Elterngeldstelle (parental allowance office) in your respective federal state. In Bavaria, for instance, the responsible authority is the Zentrum Bayern Familie und Soziales (ZBFS). You can find the appropriate application forms and submit your application through their official website.
How to Apply
There are two primary methods to apply for Elterngeld:
- Online Application:
- Some federal states offer online application portals. For example, the L-Bank provides an online application process where you can fill out the form, upload necessary documents, and submit electronically.
- Paper Application:
- Alternatively, you can download the application form from your state’s Elterngeldstelle website, fill it out manually, and send it along with the required documents by mail. Ensure that all forms are signed and completed accurately to avoid delays.
Required Documents
When applying for Elterngeld, you will need to submit the following documents:
- Completed and signed application form for Elterngeld.
- Birth certificate of the child with the purpose “for Elterngeld” (original).
- Identification documents: Copies of both parents’ passports or ID cards, and residence permits if applicable.
- Proof of income: Payslips, tax returns, or other income statements for the 12 months preceding the birth.
- Certificate from the employer regarding parental leave, if applicable.
- Approval or denial notice of maternity allowance from the health insurance provider.
- Proof of health insurance coverage.
- Bank account details for the payment of Elterngeld.
Additional documents may be required depending on your specific situation, such as proof of self-employment income, previous Elterngeld notices for older children, or documentation of other benefits received.
7. Taxation and Impact on Other Benefits
While Elterngeld is a valuable financial support for new parents, it’s essential to understand its implications on taxation and other social benefits.
Taxation of Elterngeld
- Tax-Free but Affects Tax Rate: Elterngeld itself is tax-free; however, it is subject to the Progressionsvorbehalt (progression clause). This means that although you don’t pay taxes on Elterngeld directly, it increases your overall taxable income, potentially pushing you into a higher tax bracket.
- Potential for Tax Back Payments: Due to the progression clause, many families may face additional tax payments when filing their annual tax return. It’s advisable to set aside a portion of your income to cover any potential tax liabilities.
Impact on Other Social Benefits
- Interaction with Other Benefits: Elterngeld can affect the amount you receive from other social benefits, such as unemployment benefits (Arbeitslosengeld), housing benefits (Wohngeld), or child supplements (Kinderzuschlag).
- Offsetting Mechanism: In some cases, the receipt of Elterngeld may reduce the amount of other benefits you are eligible for, as it is considered when calculating total household income.
- Consultation Recommended: Given the complexity of how Elterngeld interacts with other benefits, it’s recommended to consult with a tax advisor or the relevant social service agencies to understand your specific situation.
Understanding the tax implications and how Elterngeld interacts with other benefits is crucial for effective financial planning during your parental leave.
8. Recent Changes to Elterngeld Regulations (Effective April 2024 & April 2025)
Germany has implemented significant changes to the Elterngeld system, affecting eligibility and benefit structures. These reforms aim to address budgetary constraints while promoting equitable distribution of benefits.
Lowered Income Thresholds
To qualify for Elterngeld, the following income limits now apply:
- From April 1, 2024: The maximum taxable income for eligibility is €200,000 per year for both couples and single parents.
- From April 1, 2025: This threshold will further decrease to €175,000 per year.
These changes replace the previous limits of €300,000 for couples and €250,000 for single parents. The income considered is the taxable income from the calendar year preceding the child’s birth.
Restrictions on Simultaneous Basiselterngeld
For births on or after April 1, 2024, both parents can receive Basiselterngeld simultaneously for only one month, and this must occur within the first 12 months of the child’s life. This policy encourages parents to alternate their leave periods, promoting shared childcare responsibilities.
Exceptions apply for:
- Parents of children born at least six weeks prematurely.
- Parents of multiples (e.g., twins, triplets).
- Parents of children with disabilities or those already receiving a sibling bonus for a child with a disability.
In these cases, simultaneous receipt of Basiselterngeld beyond one month is permitted.
Extended Benefits for Premature Births
Parents of children born prematurely (at least six weeks before the expected due date) are eligible for additional months of Basiselterngeld:
- 1 extra month if born at least 6 weeks early.
- 2 extra months if born at least 8 weeks early.
- 3 extra months if born at least 12 weeks early.
- 4 extra months if born at least 16 weeks early.
These additional months can also be converted into ElterngeldPlus, effectively doubling the duration.
Increased Part-Time Work Flexibility
The permissible working hours during Elterngeld receipt have been increased from 30 to 32 hours per week. This change provides parents with greater flexibility to balance work and childcare responsibilities.
These updates to the Elterngeld system reflect Germany’s efforts to adapt family support policies to current economic and social dynamics. Understanding these changes is crucial for effective family planning and maximizing available benefits.
9. Summary and Additional Resources
Navigating the Elterngeld system can be complex, especially for international families. Here’s a concise recap and a list of resources to help you further:
Key Takeaways
- Purpose of Elterngeld: Provides financial support to parents who reduce or pause their employment to care for a newborn.
- Types of Elterngeld:
- Basiselterngeld: Available for up to 12 months, extendable to 14 months if both parents participate.
- ElterngeldPlus: Allows for part-time work and extends the benefit period.
- Partnerschaftsbonus: Additional months for parents who simultaneously work part-time.
- Eligibility Criteria:
- Residency in Germany.
- Living with and caring for the child.
- Limited or no employment during the benefit period.
- Application Process:
- Apply after the child’s birth.
- Submit to the local Elterngeldstelle.
- Provide necessary documentation, including income proof and identification.
- Recent Changes:
- Income thresholds lowered to €200,000 (April 2024) and €175,000 (April 2025).
- Restrictions on simultaneous Basiselterngeld for both parents.
- Extended benefits for premature births.
- Increased allowable working hours during benefit receipt.
