Parental Leave
Parental leave is time off for mothers and fathers following the birth of a child. All employees are entitled to it for a period of up to three years. The employer does not pay wages during this period, unless parents work part-time while on parental leave.
The requirements for parental leave are that the parents primarily care for their child themselves, live together in the same household, and work no more than 30 hours per week during parental leave. Parents whose child was born on or after September 1, 2021, may even work up to 32 hours per week. This also applies to unmarried couples. What matters is not the individual week, but the monthly average.
The parents alone decide when to start parental leave and how long it will last. They can take parental leave at the same time or at different times; they can take the three years all at once or spread them out. The following points should be noted:
- The first twelve months must be taken before the child turns 3
- The remaining 24 months must be taken by the time the child turns 8
- Parental leave can be divided into three phases without the employer’s consent
What do parents need to keep in mind when applying for parental leave?
The application for parental leave must be received by the employer no later than seven weeks before the desired start date. Exception: Applications submitted after the child turns 3 years old must be received by the employer no later than 13 weeks before the start of parental leave.
If parental leave is to begin with the birth of the child, mothers must apply for parental leave with their employer no later than seven weeks before the end of the maternity leave period. Fathers, on the other hand, should submit their parental leave request no later than seven weeks before the estimated due date.
Both parents should be sure to obtain written confirmation of their parental leave application from their employer. The employer is required to provide this.
Parental Allowance
Parental allowance provides financial compensation when parents have a reduced income because they are temporarily working fewer hours or not at all following the birth of a child. In this way, parental allowance helps secure the financial livelihood of families. Parental allowance is also available to parents who had no income at all prior to the birth of their child. There are three types of parental allowance: the basic parental allowance, Parental Allowance Plus, and the partnership bonus.
IG Metall’s Demands
IG Metall is advocating for an increase in the minimum and maximum amounts of parental allowance and for these amounts to be indexed to inflation. No adjustments have been made since the introduction of parental allowance in 2007. This amounts to a cut in parental allowance: Consumer prices rose by 23 percent between 2007 and January 2022. Added to this is wage growth. Furthermore, IG Metall is calling for the “Family Start Period” to finally be introduced. This would allow fathers or the other parent (or a person of their choice in the case of single parents) to receive ten days of paid leave immediately after the birth. This is intended to support the mother’s health, strengthen the bond between parent and child, and promote partnership.
Who is eligible for parental allowance?
All mothers and fathers are eligible for parental allowance, regardless of whether they were employed before the child’s birth. The requirements are that they live with the child, care for the child themselves, and are not employed or are not working full-time. Unmarried fathers can also receive parental allowance if they can credibly establish paternity, even before the formal paternity determination proceedings are concluded.
For parents of children born after April 1, 2024, a new income limit will apply in the future: For single parents or a couple, the limit will initially be a combined taxable income of no more than 200,000 euros. Starting April 1, 2025, the limit will be 175,000 euros. Anyone earning more than this amount will not receive parental allowance.
Amount of Parental Allowance
The amount of parental allowance is normally 65 percent of the calculated net earnings prior to the child’s birth. The minimum rate is 300 euros, and the maximum rate is 1,800 euros. If employees receive parental allowance and also have an income, the two amounts are offset against each other. While receiving parental allowance, the maximum number of working hours per week is 30 hours, or 32 hours if the child was born after September 1, 2021.
Duration of Parental Allowance Benefits
Parents (couples and single parents) are entitled to a maximum of 14 months of basic parental allowance in total.
For couples, they can only claim the full 14 months if the other parent also reduces their working hours to a maximum of 32 hours per week on a monthly average or stops working entirely for a period of at least two months—so-called “partner months.”
One parent can receive basic parental allowance for a minimum of 2 months and a maximum of 12 months. Many combinations are possible here. The option for parents to receive basic parental allowance simultaneously has been revised for births on or after April 1, 2024: During the child’s first year of life, parents may now only receive basic parental allowance simultaneously for one month.
As a general rule, one month of basic parental allowance can be converted into two months of Parental Allowance Plus. The maximum benefit period is 28 months for couples or single parents. However, months in which women receive maternity benefits (maternity allowance from health insurance and employer contributions) are counted toward the basic parental allowance benefit period.
For example, if a mother receives two months of maternity benefits, the total eligibility period for Parental Allowance Plus for both partners combined is reduced to a maximum of 24 months.
If both partners work between 24 and 32 hours per week on average each month for two to four months simultaneously, they also receive the partnership bonus. Both then receive parental allowance for two to four months longer. The calculation is done in the same way as for Parental Allowance Plus. Depending on income prior to the birth, the partnership bonus per parent ranges from 150 to 900 euros per month. Single parents are also eligible for these additional months under the same conditions. Detailed information on the partnership bonus can be found on the website of the Federal Ministry for Family Affairs.
Parental Allowance for Low-Income Earners
Low-income earners with a net income below 1,000 euros receive an increased parental allowance. For every 20 euros their income falls below 1,000 euros, they receive an additional one percentage point on top of the 67 percent.
Where do I apply for parental allowance?
The application for parental allowance should be submitted within the first three months of the child’s life, as parental allowance is paid retroactively for a maximum of three months. The application must be submitted to the local parental allowance office with jurisdiction. Parents can find the relevant offices through the Federal Ministry for Family Affairs.
The appropriate form for the respective federal state must be used for the application. In some federal states, parental allowance can now be applied for digitally; in others, it must be done using a paper form.
If the parental allowance was calculated incorrectly, mothers or fathers must file a written appeal with the parental allowance office within one month of receiving the payment.
Members and expectant parents can find checklists, sample applications for parental leave, and much more in our Parenting Guide.
