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Kindergeld allowance and Kinderzuschlag allowance in 2023, here’s by how much the amount will increase

Kindergeld allowance and Kinderzuschlag allowance in 2023

Child benefit in Germany. Kindergeld and Kinderzuschlag in 2023. Germany’s coalition government in the third relief package is inclusion an increase in child benefit and child allowance. Here’s how much you are entitled to:

Many households in Germany have been suffering the effects of inflation especially due to the war in Ukraine and many have been wondering how to cover their cost of living. The rising cost of energy has also led to an increase in prices in all sectors, from supermarket goods to mobility.

The new relief package includes, among other things, assistance for pensioners and studentsan increase in housing allowance , civic income and another allowance for working at home . In the third round of aid, the government coalition also included an increase in the Kindergeld family allowance and the Kinderzuschlag allowance.

What is the amount of Kindergeld and Kindersuschlag in 2023

The kindergeld rates were last increased in January 2021. The increase was € 15. The current ruling coalition plans to introduce a new family benefit, the so-called basic allowance, to replace the Kindergeld.

From January 1, 2023, there  will be an increase in Kindergeld benefitThe monthly amount of the allowance for the first, second and THIRD child will increase from EUR 219 to EUR 237 per month.  There is still € 250 left for the fourth and each subsequent child .

Facing the high inflation that Germany is struggling with. The planned Kindergeld hike seems disproportionate. From January 1, 2023, the addition to Kindergeld, i.e.  Kinderzuschlag , will also increase . It will be 250 euros per month.

Who will benefit the most from the new discount package?

Families living in Germany are to benefit from this new aid package. In addition to this is a one-off payment, reduced pension contributions or remote work tax credits they may apply for, the savings from the reduction of VAT on gas will be the highest for them. Assuming the family lives in a house ranging in size from 115 to 180 square meters, the estimated annual savings could be between 400 and 650 euros.

The family support measures also include an increase in Kindergeld Child Benefit. Parents will be able to receive  € 237 per month for their first three children – an increase of € 18 per month per child . This means an additional EUR 216 a year for families with one child, EUR 432 with two children and EUR 576 with three children.

Source: Kreiszeitung.de, arbeitsagentur.de