Family - Income limit for parental allowance decreases
Parents with particularly high incomes will no longer be entitled to parental allowance from next year. The Bundestag has significantly lowered the income limit.
Couples can now only receive parental allowance up to an annual taxable income of 175,000 euros if they take a break from work for the child and therefore do not earn any money. A limit of 150,000 euros applies to single parents. This is a significant change, as the previous income limit was 300,000 euros for couples and 250,000 euros for single parents.
In addition, couples will still be able to take up to 14 months of parental leave together - but staying at home together and receiving parental allowance at the same time will only be possible for one month within the first twelve months of the child's life. There are exceptions for multiple births and premature births.
Read also:
- Year of climate records: extreme is the new normal
- Precautionary arrests show Islamist terror threat
- UN vote urges Israel to ceasefire
- SPD rules out budget resolution before the end of the year
- This change in the income limit for parental allowance may impact various family structures in Germany, including single parents who previously benefited from a higher limit of 250,000 euros.
- Berlin, as the capital of Germany, will also be affected by this change, as families residing there will now have a lower income limit of 175,000 euros for couples and 150,000 euros for single parents to be eligible for parental allowance.
- With these modifications, it might be more challenging for high-income families in cities like Berlin to balance their work and family life, as they may no longer receive parental allowance, which could potentially steer them towards hiring childcare services.
- Being a single parent in Germany, especially in cities like Berlin, will require careful financial planning as the income limit for parental allowance is reduced, pushing some families close to or beyond their means.
Source: www.stern.de
