Family - Income limit for parental allowance significantly lower in future
Parents with particularly high incomes will no longer be entitled to parental allowance from next year. The Bundestag has significantly lowered the income limit.
In future, couples can 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.
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.
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- The decision to lower the income limit for parental allowance in Germany was made by the Bundestag, affecting parents living in Berlin and beyond.
- Despite the new income limit, families in Germany can still enjoy the benefit of taking up to 14 months of parental leave, but only one parent can receive parental allowance during the first month if both parents decide to take leave simultaneously.
- Notably, the lower income limit for parental allowance will affect higher-income families in Germany, who were previously entitled to receive parental allowance, but this will change starting from next year.
- Berlin families with annual taxable incomes of up to 175,000 euros (for couples) or 150,000 euros (for single parents) will still be eligible for parental allowance, but only if one parent decides to stop working to care for the child.
Source: www.stern.de
