New income limit
Who will no longer get parental allowance from April 1st
This cut -off date can be expensive: on April 1st, thousands of high earners will lose their right to parental allowance. Who is affected by the change and what you need to know.
Some expectant parents who are short of the birth of their child these days are likely to look at the exact date of birth with a very special tension. Because: If your child is born in March, you will receive full parental allowance for up to 14 months. If the birth is on April 1st or later, they go out completely empty when it comes to parental allowance.
The reason is one of the last austerity measures of the elected traffic light government. This had decided to delete parental allowance due to the tense budget situation. The income limit for the purchase of parental allowance was significantly reduced a year ago, now the next level follows. Only a small part of all parents is affected, but it is about a lot of money.
What exactly changes in the case of parental allowance?
Parents who will receive a child from April 1, 2025 can only receive parental allowance if they earn less than 175,000 euros in a taxable income a year. A year ago, on April 1, 2024, the income limit was reduced to 200,000 euros. Before that, 300,000 euros for couples and 250,000 euros for single parents. The new income limits of currently 200,000 euros and from April 175,000 euros apply to couples and for single parents. The taxable income in the calendar year before the child is born is decisive for the calculation.
What does it count as a taxable income?
Anyone who fears to tear the income limit with a view to the pay slip should know that the taxable income is usually significantly lower than gross wages. Because various allowances, special expenses or pension expenses are deducted from this. According to the Federal Ministry of Family Affairs, a taxable income of 175,000 euros for a previously childless couple in around 207,000 euros in gross wages corresponds. Depending on the individual trigger options, it can also be higher. The taxable income can be found in the tax assessment. If you don’t have the decision for the past year, you have to estimate and deliver the decision.
How many parents are affected?
The current reduction in the income limit hits tens of thousands of families per year. The Federal Ministry of Family Affairs indicated in an estimate last year that around 7,000 pairs were affected from the reduction to 200,000 euros and, from the subsequent reduction to 175,000 euros, another 20,000 couples. For 2026, the Ministry expects 30,000 couples affected according to the MDR. This will save 150 million euros in the current year and 250 million euros in the next year.
How much parental allowance will there be in the future?
Nothing changes. Since the parental allowance is a wage replacement benefit, the height still depends on what you earned beforehand. Depending on the income, a parent gets parental allowance between 300 and 1800 euros per month. How much parental allowance is exactly due to you can be calculated with the parent -gear calculator of the Federal Ministry of Family Affairs.
Are there any further changes to parental allowance?
At first not. The lowering to the income limit of 175,000 euros is the last level. Furthermore, the changes introduced in April 2024 also apply. This includes that parents can only receive basic parallel money in parallel for a maximum of one month and only in the first twelve months. It remains to be seen which plans the next federal government is pursuing parental allowance.
Source: Stern
