Germany: The new Elterngeld parental benefit rules in Germany enter into force on September 1, 2021. Here’s what’s changing:-
Elterngeld is a benefit for young parents, both German and foreign , who would like to stay on parental leave for 12 or 14 months. From September 1, 2021, new regulations will come into force. Here’s what’s changing:
More support for parents of premature babies
From September 2021, parents of premature babies will start receiving parental benefits in Germany for a month longer than before. Preterm babies are babies born at least six weeks before the calculated date of birth.
The amendment also introduces a favourable change for parents of children born eight, twelve or sixteen weeks before the deadline. From September, they will receive benefits for two, three or four additional months respectively.
News for parents working part-time
Parents receiving Elterngeld do not have to stop working altogether. Until the end of August 2021, they may work, provided that the number of working hours does not exceed 30 hours per week.
From September 1 this will change. Under the reform, parents who receive parental benefit but have already returned to part-time work will be able to work 32 hours a week without losing their Elterngeld entitlement .
The amount of parental benefit remains unchanged during the Kurzarbeitergeld and Krankengeld periods
The amount of parental benefit for part-time parents will not change where they receive income replacement benefits such as Kurzarbeitergeld or Krankengeld . It is worth recalling that so far these benefits have lowered the amount of Elterngeld.
The upper income limit is changing
The Bundestag also changed the upper income limit. From September 1, 2021, the benefit will be granted only to parents whose annual income does not exceed PLN 300,000. euro , and not 500 thousand as before . For single parents, the limit is still 250,000. euro .
Elterngeld is a benefit for young parents, both German and foreign, who would like to stay on parental leave for the first 14 months of a child’s life. It is reserved for people who were employed before the birth of the child. The amount of the childcare allowance depends on the family’s income and ranges from EUR 300 to EUR 1,800 per month.