Parental allowance has not been increased since 2007; now the minimum and maximum rates are to increase. A reform also provides for changes in the receipt of benefits.
Berlin. After long discussions about possible cuts in parental allowance, mothers and fathers can expect more money in the future. The performance is to be increased for the first time since its introduction in 2007. As the Federal Ministry for Family Affairs in Berlin announced, an increase in the minimum rate from 300 to 330 euros and an increase in the maximum rate from 1,800 to 1,900 euros is planned.
A corresponding bill for parental allowance reform, which also contains further innovations, was voted on within the government. So nothing has been decided yet, but the key points seem to be in place.
Family Minister Karin Prien (CDU) told the German Press Agency that the coalition had found a good solution for parental allowance. "We have agreed to further develop parental allowance structurally and to better adapt it to the current reality of life for young families. In this way, we are ensuring that it remains attractive for young people in Germany to start a family in the future."
In their coalition agreement, the Union and the SPD agreed to reform and increase parental allowance. Under the strict austerity requirements, Prien then drew up a draft for a reform that envisaged a reduction in the duration of benefits by two months - from 14 to 12. That sparked criticism. The cut is now off the table.
The planned regulations in detail:
The basic parental allowance remains 14 months if both parents take at least four months each; the remaining six months can be flexibly divided between each other. Single parents can also continue to receive parental allowance for up to 14 months.
In the first four months of each month, both parents receive more: In the future, there will be 80 percent of the net earnings before the birth, but only 50 percent for each additional month. So far, basic parental allowance has generally been around 65 percent of net earnings for each month of parental allowance. In the future, Christmas bonuses and other remuneration will also be included in the net calculation.
According to the ministry, this will make it more financially attractive for fathers to take an active role in the early phase of the family. This creates a “real boost for more partnership”.
Both parents should again be able to receive unlimited parental allowance at the same time, for example for the first four months together. After the last reform, this was restricted; parents could only receive basic parental allowance for one month within the child's first year of life.
The sibling bonus for families - a supplement to parental allowance if there are other children living in the household - should be paid for longer.
Administrative costs should be reduced so that the parental allowance reaches the parents more quickly.
Prien said: "We are consciously sending a message to young families: We support you. In addition, the draft also keeps an eye on our budget so as not to burden taxpayers more every year. That is also part of our responsibility."
Parental allowance has been available since 2007 as an income replacement for mothers and fathers when they take time off work to care for children. In 2025, around seven billion euros were spent on parental allowance, with 1.6 million recipients. In 2021, according to the federal government, the number was still more than 1.8 million. In 2024, 290,105 people received the maximum amount and 349,157 received the minimum rate.
Experts believe a reform is overdue. Because of the lack of inflation compensation, the service has lost around 38 percent of its purchasing power since its introduction, a study by the German Economic Institute showed. It is still unclear when the reform will come into force.
