This is set to change with parental allowance
Parents with particularly high incomes should no longer be entitled to parental allowance - these plans were known. Now, however, the cuts for top earners will not be quite so severe after all. This was agreed by the traffic light coalition during consultations on the 2024 federal budget. There is bad news for expectant and future parents who had planned to take parental leave together for a longer period of time. This will no longer be possible with parental allowance in future.
Income limit decreases in two steps
Today, couples can receive parental allowance up to an annual taxable income of 300,000 euros if they take a break from work for the child and therefore do not earn any money. This limit should actually fall to 150,000 euros for couples. After much criticism, the traffic light committee has now agreed to lower it in two stages, first to 200,000 and then to 175,000 euros. The limit for single parents - currently at 250,000 euros - will be lowered to 150,000 euros.
The child's birthday is important
The decisive factor will be the child's birthday. For parents whose children are born by March 31, 2024, nothing will change. From April 1, 2024, however, the new 200,000 euro limit will apply for couples and the 150,000 euro limit for single parents, followed by the new limit of 175,000 euros for couples from April 1, 2025. For employees, this will be based on income in the 12 months prior to the birth of the child or before the start of maternity leave, and for self-employed people, it will be based on the previous year's income from the last tax assessment.
Joint parental leave is limited
Important for future parents and those who already know that they will have a child in the spring: According to the plans, parental allowance will only be available in parallel to a limited extent in future. Until now, couples have been able to receive the standard parental allowance for a maximum of 14 months and combine this as they wish: Either they alternate, so that one stays at home for nine months and the other for four, for example. However, it is also possible for both of them to take a seven-month career break for the child and receive parental allowance at the same time. This will no longer apply to parents of children born from April 1, 2024.
Maximum of one month at home together
It will remain 14 months in total, 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. According to Ampel circles, around half of fathers already take a month off together directly after the birth. This is therefore still guaranteed. The SPD housekeeper Felix Döring spoke of stronger incentives for more partnership. The regulation will not apply to premature babies and multiple births.
- The change in parental allowance policies affects both single parents and families, as the income limit for receiving parental allowance is set to decrease for both groups.
- In the discussions surrounding the 2024 federal budget, the Bundestag agreed to lower the income limit for parental allowance in stages, affecting households with higher incomes.
- Single parents, as part of the household, will also be subject to the reduced income limit for parental allowance, aligning with the changes made for families with children.
Source: www.dpa.com
