Parental allowance in the event of unemployment: These are your rights
Can you get parental allowance if you are unemployed? And how does parental allowance relate to other social benefits, or what restrictions do you have to reckon with? Here you will get answers to the most important questions about parental allowance in combination with other benefits.
Do I get parental allowance if I am unemployed?
Parental allowance is intended to provide financial relief for fathers and mothers if they have to step back from work after the birth of the child in order to look after the new family member. But what if applicants are unemployed and receiving unemployment benefits? We explain to you whether parental allowance is paid out in the event of unemployment and how it affects unemployment benefit I and unemployment benefit II (Hartz IV). We also explain how other benefits may be affected by parental allowance.
From January 1, 2013, the calculation of the assessment basis for parental allowance will change. In simpler terms, you still get a certain percentage of your adjusted net wages. Strictly speaking, you receive 65 percent of the average monthly income that you earned in the twelve months before the birth of your child. However, there is a lower limit of 300 euros and a maximum payout of 1,800 euros. Parents who had children before 2013 can expect parental benefits of mostly 65 to 67 percent of the average net salary after actual social, tax and other deductions (e.g. church tax). For parents who have their children after 2012, the average gross salary counts, from which the parental allowance officededucts a lump sum for social security contributions, wage tax and other taxes. The replacement rate is then determined as usual. You can find out more details about the new features in our article “ Parental Allowance – Calculation by Authorities ”.
Parental allowance and unemployment benefit I
Is parental allowance paid out in the event of unemployment? Yes, there are two options. If you are unemployed and pregnant or only become unemployed after the birth, you may be entitled to unemployment benefit I. You can find out about the requirements and conditions at the local employment agency or on the website of the responsible employment agency . Along with your entitlement to parental allowance , you have two options:
Possibility 1: You let the entitlements to unemployment benefit I rest and apply for parental benefit after the birth of the child. You will receive a percentage of your previous net salary, which is 65 percent. Low earners, who earned an average of less than 1,000 euros a month, will gradually receive up to 100 percent of their previous salary. The average monthly income from the 12 months before the birth of the child is taken into account, with the parental allowance office counting months in which you received unemployment benefit I as months without income. When the parental benefit months expire, you can receive unemployment benefit I again.
A father earns 1,800 euros net for nine months in the 12 months before the birth of his baby. Three months before the birth he becomes unemployed and receives unemployment benefit I. After the birth he waives unemployment benefit I and applies for parental benefit. The calculation by the parental allowance office shows that he will receive the following parental allowance in the event of unemployment: the nine months of employment add up to a salary of 16,200 euros. The three months of unemployment are charged at 0 euros. 16,200 euros divided by 12 months results in an average salary of 1,350 euros. At this salary level, the father receives 65 percent of 1,350 euros in parental allowance, which would be 877 euros a month.
Possibility 2: You (continue to) draw unemployment benefit I and also apply for parental benefit. A condition for unemployment benefit I is that you are available for the labor market and are trying to find a new job. This may mean that you may also have to take part in measures taken by the employment agency – in this case in order to receive parental benefit in the event of unemployment. If you decide on this variant, you should make provisions for the care of your baby in any case . Unemployment benefit I is offset against parental benefit. Only the minimum amount of 300 euros, to which all applicants are entitled, remains free.
A mother is in a fixed-term employment relationship that expires shortly before the birth of the child. However, she would like to use her entitlement to parental allowance in the event of unemployment and is therefore applying for unemployment benefit I as well as parental allowance. She is entitled to unemployment benefit of 1,400 euros. The parental allowance would amount to 1,300 euros. Since the unemployment benefit is offset against the parental benefit, the bottom line is that nothing would be left over from the parental benefit. However, 300 euros of the parental allowance are not counted. The mother therefore receives 300 euros in parental allowance in addition to 1,400 euros in unemployment benefit.
Parental allowance in combination with other income replacement benefits
Unemployment benefit I is a so-called “compensation benefit”, i.e. a benefit that replaces the previous salary to a certain extent. Other compensation benefits are, for example , short-time work benefits, sick pay or pensions . Like the unemployment benefit I, these benefits are also counted towards the parental benefit. If the compensation is lower than the parental allowance, the competent authority pays out the difference. If this difference is less than the minimum amount of 300 euros, it will be increased to 300 euros in any case.
A father earns 1,000 euros net per month before the birth. After the birth, the income from work ceases and he receives a disability pension of 500 euros a month. In his case, the parental allowance is 67 percent of his previous salary – i.e. 670 euros. However, since compensation benefits are taken into account, 500 euros must be deducted from the parental allowance. What remains is the difference of 170 euros, which the parental allowance office increases to the minimum amount of 300 euros. The father receives a disability pension of 500 euros and parental allowance of 300 euros, making a total of 800 euros.
Parental allowance and unemployment benefit II
Since January 1st, 2011, the parental allowance has been counted towards social benefits such as unemployment benefit II, better known as Hartz IV, social assistance or the child allowance . This means: Before 2011 you could apply for parental allowance at a minimum rate of 300 euros without affecting the amount of other social benefits. Since 2011, parental allowance has been counted as income and is deducted from unemployment benefit II. Note: In the case of housing benefit and BAföG , the minimum amount of 300 euros is not counted, so it does not affect the amount of the payments.
The federal government provides an exception for applicants who worked before the birth of the child. Anyone who had a mini-job, for example, can use the so-called parental allowance allowance , which makes a maximum of 300 euros of the parental allowance available without being offset.
Before the birth of her daughter, a mother earns 120 euros a month and also receives Hartz IV. Since she worked, she can use the parental allowance allowance, which in this case is 120 euros. From 300 euros of parental allowance, 180 euros are deducted from unemployment benefit II. 120 euros are not taken into account and are available to the mother in addition to unemployment benefit II.
parental allowance and other benefits
Parental allowance also plays a role in relation to other benefits and you should find out in advance how parental allowance relates to maintenance, maternity benefits and the like:
- Maintenance: The amount of maintenance payments depends on the income of both parents. If parental allowance exceeds the minimum amount of 300 euros, it will be credited to your income, regardless of whether you are dependent or entitled to maintenance. If only the minimum amount of 300 euros is paid out, the parental allowance is not taken into account.
- Maternity benefits: Maternity benefits are, for example, the maternity allowance from the statutory health insurance companies and the employer’s contribution to the maternity allowance. Maternity benefits fulfill the same purpose as the parental allowance and are therefore fully credited to it. As a rule, therefore, there is no parental allowance left over in the months in which you receive maternity allowance.
- Foreign benefits: If you receive foreign benefits after the birth that serve a similar purpose to the parental allowance, these benefits must be offset against the parental allowance. If the payments from abroad are higher than the amount of parental allowance you are entitled to, you will not receive parental allowance in Germany. If the parental allowance is higher, the parental allowance office pays out the difference monthly.
It is not easy to keep track of all the conditions and regulations, but with a little patience you will soon have all the important information you need. In any case, it is certain that you can apply for parental allowance if you are unemployed. We have summarized all the necessary information on the subject of parental allowance , for example where and when you should best apply for parental allowance, here.