Parenthood Benefits (Elterngeld , Elternzeit)
Germany’s system of Elternzeit (“parent time” or parental leave) is the stuff of fantasy for most people. Germany has some of the most extensive parental protection policies in the developed world. The financial benefits of staying home (from both Elternzeit and Elterngeld or parents’ money programs) are often too good to pass up for German mothers, and can lead to stagnant or non-existent careers.
All employees have contracts with their employer. Parents who have been gainfully employed for the previous 12 months are eligible for Elternzeit benefits. The employee is eligible to work part-time up to 30 hours while on leave, and must continue full-time employment at the conclusion of the parental leave.
Parents may also choose to postpone up to one year of their leave until the child’s 8th birthday. Either parent is eligible for parental leave, and many couples make the choice based on financial considerations.
In addition to the preservation of the employee’s contract, the state will pay up 67% of the employee’s salary. These benefits apply equally to same-sex couples.
Both Mutterschutz and Elterzeit are covered with financial allowances. During Mutterschutz, the employed mother receives a financial allowance known as the Mutterschaftsgeld which is covered by the health insurance company.
After the child birth, parents, whether employed, self-employed, unemployed, students, apprentices or with adopted children are eligible to get Elterngeld (Parental allowance). This parenting allowance should be applied for within 3 months of the child birth at the government.
If you are the primary caregiver of your child, reside together and with valid residence permit, you are eligible for the Parenting allowance in Germany. Alongside the parenting allowance, the parent is allowed to work part-time (not more than 30 hours per week) after Child birth.
The Parenting allowance is calculated with the applying parent’s income (67% of the last 12 months salary after taxation). A minimum amount of 300€ and maximum amount of 1800€ is provided as Elterngeld. In the case of unemployed women, they are eligible to get the minimum amount.
For how long can I receive this allowance?
While single parents are entitled to receive Elterngeld for 14 months, a parenting couple can share this duration amongst themselves (each parent receives Elterngeld to a minimum of 2 months and maximum of 12 months together not exceeding 14 months).
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Link to apply:
Elterngeld Plus:
Since June 2015, a new extended Elterngeld Plus has been made available which provides half the original parental allowance for a duration, twice as long for parents who return to work early on a part-time basis.
Tip:
The German government has tailored the Parental allowances scheme to fit to the needs of different kinds of social or family settings. It is always advisable to educate yourself about the different options available and choose the best option suitable before applying.
Child Allowance (Kindergeld )
Every family living with a valid residence permit in Germany, having children and paying Income tax are eligible for applying for Child Benefits. Adoptive parents, Spouses living with Step children and Grandparents living with Grandchildren are also entitled for Child Benefits.
Child Allowance (Kindergeld) is paid in Germany as a sustenance aid to a family for a healthy upbringing of a child or children. However it is thought to also encourage parents to have kids. The amount paid as Kindergeld has changed recently from Jan 2021 to €219 per month for first two kids, €225 for the third kid and €250 for every further Kid. The allowance is paid until the child is 18 years old and can be extended until an age of 25 if the child is studying any kind of higher studies.
The Kindergeld is paid until the child's 18th birthday to their parents (who are also entitled to avail a tax exempt while filing for the annual tax filing) and after 18 years, if the child moves away from home, it is paid directly to the child.
To know more about Kindergeld, please follow the link : https://www.arbeitsagentur.de/en/financial-support
Familienkasse - Child Benefits in English
Documents needed to apply for the kindergeld:
- Residence Permit (Anmeldung)
- Birth certificate (Original and also German Translated)
- Passport copy
- Proof of Residence Registration (Haushaltbescheinigung)
- The child's tax ID number (Steurliche Identifikationsnummer issued by the Federal Tax office)
Application for the Child Allowance (Kindergeld) can be found in English here - Familienkasse - Application for Child benefit & Appendix
The filled in application has to be submitted at the Family Benefits office (Familienkasse) at the local Labor office (Agentur für Arbeit). In the case of families or civil partners, one partner can apply for the kindergeld in the name of the other partner if a Power of attorney (Vollmacht) is available.