Working despite parental allowance, is that possible?
Even if you receive parental allowance, it is basically possible to work part-time. However, some special conditions apply. Here you can find out which regulations you have to observe if you want to work after the birth of your child and receive parental allowance at the same time.
Working despite parental allowance – the most important regulations
- In principle, it is not a problem to work while receiving parental allowance. However, only if you have reduced your working hours after the birth and do not work more than 32 hours per week (as of September 2021). The reason for this: The parental allowance is intended to relieve parents financially if, after the birth of the child, they need less time for their job and more time for caring for their baby. The parental allowance therefore replaces part of the previous net income.
- Anyone who continues to work full-time after the birth of their child has no financial losses and is therefore not entitled to parental allowance as financial compensation.
- Income that is available to you in addition to the parental allowance will be offset against the parental allowance by the responsible authorities . After all, what you earn in addition to parental allowance does not have to be compensated for by this.
- If you and your partner would like to work part-time at the same time, there is the partnership bonus . This can be obtained from September 1, 2021 with a working week of 24 to 32 hours. The partnership bonus is not reduced in the case of income replacement benefits such as short-time work benefits or sick pay.
In the following, we will tell you what you need to look out for in the two conditions and what effects they may have on you.
With parental allowance, less work is a must
When you submit your application for parental allowance , you have to prove, among other things, that you work less or not at all during the reference period.
- Employees and civil servants only have to present a written agreement with their employer, for example a corresponding contract.
- The self -employed can prove that they stick to the 30-hour limit by having a reduced order situation or by hiring an additional assistant. Of course, only written documents are accepted here as well.
- If you are studying or doing an apprenticeship , you do not have to limit the working hours you spend on it. In these cases, more than 32 hours per week are allowed. However, if a part-time job is added, the 30-hour limit applies to this “additional income”.
A little tip about working hours: The parental allowance office does not record working hours weekly, but monthly. This means that you can distribute 120 working hours per month individually over individual weeks.
Income is offset against parental allowance
The parental allowance office makes sure that all the necessary conditions for receiving parental allowance are met. It is therefore important that you inform them of any change affecting your work status or salary. Because apart from the basic entitlement to parental allowance, changes may also affect the amount of parental allowance .
- Employees and civil servants submit a copy of their payslip to the parental allowance office as evidence.
- For the self -employed , the tax assessment for the last completed assessment period is sufficient as proof. The assessment period is the calendar year – not the exact 12 months – before the birth of the child. If the current tax assessment is not yet available, you can also submit an older tax assessment or an income surplus calculation. Don’t forget to submit current receipts as soon as possible.
How exactly is the income calculated?
The income from part-time work or a part-time job is not deducted from the actual parental allowance amount, but from the so-called assessment basis. This is the starting point for every parental allowance calculation. Put simply , the “adjusted” net income from the 12 months before the birth of the child is used to calculate parental allowance.
Since January 1, 2013 , the “adjusted” net income is still decisive, but the way the authorities calculate it works differently. For parents whose children were born before January 1, 2013, the net salary counts after actual social and tax contributions. For parents who are expecting children after January 1, 2013, the gross salary counts , from which a flat rate of 21 percent is deducted for social security contributions, wage tax and other taxes (e.g. church tax). You can read about what makes the difference in our article “ Parental Allowance – Calculation by the Authorities ”.
Whether it is calculated according to the old or new regulation – what you earn during your parental leave is deducted from the adjusted net wage. What remains serves as the basis for calculating the parental allowance. In most cases, between 65 and 67 percent of this assessment basis is set as the amount of parental allowance – however, there is no more than 1,800 euros. Here are some examples:
Before the birth of her child, a mother earned 2,400 euros after all deductions. After the birth, she works part-time and earns 1,000 euros a month in addition to her parental allowance. Without the part-time job, the parental allowance at this salary level would be 65 percent of 2,400 euros, i.e. 1,560 euros. With the part-time job, an income of 1,000 euros must be taken into account and the parental allowance recalculated. The parental allowance office deducts EUR 1,000 from the original EUR 2,400 net salary, which served as the basis for assessment. The mother now receives 65 percent of 1,400 euros – that is 910 euros per month parental allowance.
For low earners , the amount of parental allowance is gradually increased to 100 percent of the previous income, but is always at least 300 euros.
Before the birth of his child, a father earns 400 euros after all deductions. In this salary level, the parental allowance is 97 percent of the previous salary – i.e. 388 euros per month. After the birth, he reduces the working hours and earns 300 euros a month in addition to his parental allowance. This income is offset, i.e. deducted from 400 euros. In purely arithmetical terms, the parental allowance would therefore only amount to 100 euros. However, since the minimum rate for parental allowance is 300 euros, this amount is increased.
In the case of the self-employed , income also plays a role in addition to parental allowance if they retire completely from their job. Because income often continues to flow into their account.
An entrepreneur runs a business with a few employees. Before the birth of her child, she earned an average of 2,300 euros a month. After the birth, she applies for parental allowance and withdraws completely from the company. Since her employees continue to process orders, she receives 1,000 euros from her company in addition to the parental allowance. 1,000 euros must therefore be deducted from the average salary of 2,300 euros. The parental allowance for this salary level would be 65 percent of 1,300 euros – i.e. 845 euros.
If you have specific questions about working while receiving parental allowance, it is best to contact the local parental allowance office. But you will also find a lot of information on the subject of parental allowance and parental leave with us. For example, in our article ” 8 tips for applying for parental allowance “, we tell you how you can make the best use of the parental allowance for you and your family.