Parental allowance payment: This is how much parental allowance you will receive
The parental allowance depends on the level of income. But how exactly do you determine in advance how much parental allowance you will receive? We have put together all the important information about the amount of parental allowance for you.
Parental allowance as wage replacement
With the support of the parental allowance, parents should be able to take time for their newborn without being financially burdened too much. The parental allowance is a kind of wage replacement for income that is lost due to the care of the child. Part of the previous income thus flows back into the family fund with the parental allowance.
Parental allowance: amount and percentage
The parental allowance is at least 300 euros and at most 1,800 euros per month . In the case of working people, the parental allowance – to put it simply – makes up a certain percentage of the previous net income. The less you earned before the birth of your child, the higher the replacement rate:
- If you earn between 1,000 and 1,200 euros per month , the replacement rate is 67 percent .
- If your monthly income is between 1,200 and 1,240 euros , 66 percent of this income will be paid to you as parental allowance.
- If your monthly income is more than 1,240 euros , the replacement rate is 65 percent .
But beware: A maximum of 2,700 euros per month is taken into account for the calculation.
Changes since January 1, 2013: In 2013, the calculation method for “adjusted” net income changed a little. Anyone who had children in 2012 can calculate according to the old principle – the percentage of the average net wage after the actual social security contributions, taxes and other deductions (e.g. church tax and income-related expenses). Anyone expecting children in 2013 must base their parental allowance on the average gross wage. Parental benefit offices deduct a lump sum for social security contributions, wage tax and other items from this and then determine the replacement rate.
The aim of the new regulation is to simplify the entire procedure and thus process applications faster. However, the new assessment basis does not only bring advantages. You can find more information on this in our article “ Parental Allowance – Calculation by Authorities ”
Increase in replacement rate
If your income is less than 1,000 euros per month, the percentage will be increased gradually. For every two euros that you are below the 1,000 euro limit, you get 0.1 percentage points more. This can increase parental allowance to up to 100 percent of the previous net income.
Example: A mother earns 700 euros net before the birth of the child and is therefore 300 euros below the so-called low-income limit of 1,000 euros. Two euros below the limit increase the percentage by 0.1 percent. With an amount of 300 euros below the limit, that makes a total of 15 percent more. The mother therefore does not receive 67 percent but 82 percent of her previous net income as parental allowance.
If your average net income is less than 300 euros, you will always receive the full minimum rate of 300 euros in parental allowance . You can also apply for the minimum rate if you did not work at all before the birth of the child or, for example, did not study.
When it comes to parental allowance, the amount and time of receipt of the income count
- The average monthly income from the last 12 months before the birth is usually taken into account when calculating parental allowance. If, for example, you worked six months during this period and were unemployed for six months, 0 euros will be estimated for the six months of unemployment and added to the income from the six months of employment. This sum, divided by 12 months, gives the income that is taken into account by the parental allowance office for the monthly payments. As of 2013, the calendar year – not the exact 12 months – before the birth counts for the self-employed.
- Note: It is worth doing the math, especially if you have not been unemployed for a long time or have only been for a short period of time. Because depending on how much money you earned before or after unemployment, the parental allowance may be more than the minimum rate of 300 euros.
- Under certain conditions, the parental allowance office considers a period other than the 12 months immediately before the birth of the child. If, for example, you were unable to work due to a serious illness , this period will be omitted. Instead, the parental allowance office includes a corresponding number of months before your illness in the calculation. However, you have to apply for this special treatment separately .
- Keep in mind that a maximum of 2,700 euros of adjusted net income per month is taken into account when calculating the parental allowance you are entitled to. Because with 65 percent of 2,700 euros, the amount of parental allowance is almost 1,800 euros every month and thus reaches the maximum limit.
- The amount of your spouse’s income only plays a role in parental allowance if you jointly pay taxes of more than 300,000 euros per year (as of September 2021). Previously, the limit was 500,000 euros per year. Top earners of this magnitude are not entitled to parental allowance. Incidentally, this also applies if you are a single parent and pay more than 250,000 euros in tax annually.
Parental allowance and amount of additional income
Even while you are receiving parental allowance, it is easily possible to work part-time or in a part-time job for up to 30 hours a week. However, income that you receive from this activity will be deducted from the parental allowance. The new starting point for the calculation by the parental allowance office is then the adjusted net income from the 12 months before the birth minus the income that you earn while receiving parental allowance.
Example: A father had an average net income of 3,000 euros before the child was born. Only EUR 2,700 of this amount is taken into account, as this is the maximum parental benefit limit. After the birth, the father applies for parental allowance, works part-time and earns 1,000 euros a month. These 1,000 euros are deducted from 2,700 euros because they are available to the family as income and do not have to be offset by parental allowance. For the difference – 1,700 euros – parental allowance will continue to be paid as a partial wage replacement and amounts to 1,105 euros (65 percent of 1,700 euros).
Since part-time work or a part-time job affect the amount of parental allowance, it is important that you inform the parental allowance office of any such changes. Payment is not made for calendar months, but for the first 12 or 14 months of your child’s life. This means that your part-time work is counted for the individual months of your life. If, for example, you work part-time in the third month but not in the fourth month, the parental allowance will only be reduced accordingly for the third month.
More children, more parental allowance?
Sibling bonus: If you have more than one child in the household, you may benefit from the so-called sibling bonus. The calculated parental allowance is increased by 10 percent, but at least by 75 euros . This also applies if you receive the maximum amount of parental allowance, i.e. 1,800 euros. If you have two children in the household, you get the sibling bonus until the older sibling is three years old. If there are three or more children in the household, at least two of the children must be under the age of seven in order to receive the sibling bonus.
Multiple births: If you are caring for twins or triplets at home, 300 euros per multiple will be paid in addition to the calculated parental allowance.
Foster children: Unfortunately , you can not apply for parental allowance for foster children unless you are planning to adopt them and the appropriate procedure has been initiated. You can find more detailed information on this in our article “Are you entitled to parental allowance? “.
Special case of premature birth: If your baby is born at least six weeks prematurely, you are entitled to an additional month of parental allowance. With eight weeks, you will receive two additional months of parental allowance, with twelve weeks three months and with 16 weeks four months.
Of course, we can only present some of the conditions relating to parental allowance here. You can get help and answers to specific questions from your local parental allowance office. If you would like to find out more about parental allowance, you can find more information in our “ Parental Allowance ” section.