Understanding Parental Allowance (Elterngeld) in Germany: Eligibility, Calculation, and Application Guide

Who is Eligible For Parental Allowance (Elterngeld) in Germany?

The following criteria need to be met in order to be eligible for parental allowance:

• You look after the child yourself from birth

• You do not work a paid job for more than 32 hours a week whilst you are receiving the allowance

• You are a German/ EU/ EEA citizen or you have a permanent residence permit or a residence permit that allows you to work in Germany

• You and your partner’s total annual income does not exceed €200,000 (€150,000 for single parents).

How is Parental Allowance Calculated?

Elterngeld (parental allowance) in Germany is calculated based on the income you earned in the 12 months before the birth of your child (or before the start of your maternity leave). The amount you receive depends on your net income and is designed to replace a percentage of it, with lower earners receiving a higher replacement rate than higher earners. Here's a breakdown of how Elterngeld is calculated:

1. Basic Elterngeld (Basiselterngeld) Calculation:

• Income between €1,240 and €2,770: You receive 65% of your previous net income.

• Income between €1,000 and €1,239: You receive 67% of your previous net income.

• Income below €1,000: The replacement rate increases gradually to 100% for very low-income earners. For example, if your income was €500, you would receive closer to 100% of that amount.

• Minimum and Maximum Amounts:

  • Minimum payment: €300 per month, even if you had no previous income.

  • Maximum payment: €1,800 per month.

2. ElterngeldPlus Calculation:

ElterngeldPlus is an option if you plan to work part-time during your parental leave. The amount you receive is half of the Basic Elterngeld but can be paid for double the time.

• If you were entitled to €1,000 per month under Basiselterngeld, you would receive €500 per month under ElterngeldPlus but for twice the period (e.g., 24 months instead of 12).

3. Bonus for Siblings and Multiples:

• If you have other children under 3 years old, or multiple children under 6 years old, you can receive a sibling bonus. This amounts to an extra 10% of your Elterngeld, but at least €75 per month.

• If you have twins or multiples, you receive an additional €300 per month for each additional child.

4. Part-Time Income during Parental Leave:

If you work part-time during the period you receive Elterngeld, the parental allowance will be adjusted based on your income after the birth. The difference between your previous income and your part-time income is calculated, and your Elterngeld will compensate a percentage of that difference.

How Long Can You Receive Parental Allowance?

Parental allowance (Elterngeld) is paid for up to 14 months in total, under specific conditions:

• Basic Parental Allowance (Basiselterngeld): One or both parents can claim this for a total of 12 months. However, the duration can be extended to 14 months if both parents share the parental leave, with each parent receiving at least 2 months. The idea is to encourage both parents to participate in childcare.

• Parental Allowance Plus (ElterngeldPlus): This option is more flexible and allows parents to receive half the monthly amount of the basic parental allowance but for double the time. For example, instead of 12 months, you could receive parental allowance for up to 24 months. ElterngeldPlus can also be combined with part-time work.

• Partnership Bonus (Partnerschaftsbonus): This bonus provides an additional 4 months of ElterngeldPlus if both parents work part-time (25-30 hours per week) simultaneously during this period.

In summary, the exact duration depends on how the parents split the leave, whether they opt for ElterngeldPlus, and if they qualify for the Partnership Bonus.

How to Apply For Parental Allowance

If you live in the following places you can apply for parental allowance online via the ElterngeldDigital portal (in German)

• Berlin

• Brandenburg

• Bremen

• Hamburg

• Lower Saxony

• Mecklenburg-Vorpommern

• Rhineland-Palatinate

• Saxony-Anhalt

• Schleswig-Holstein

• Thuringia

If the digital application is not yet available in your city, you will need to fill out the application form and submit it to your local parental allowance office (Elterngeldstelle.) Other documents that will be needed are:

• Your child’s birth certificate

• Identification of parents such as identity card or passport

• Aufenthaltstitel und Zusatzblatt (Working permit with additional sheet. For non EU and EEA citizens)

• Proof of income, such as employment contract or statements from your bank account

• Details of maternity benefit (if applicable)

• Employer’s certificate (Arbeitgeberbeschenigung)

It takes approximately 4 weeks for your application to be processed then you will receive a written decision in the post. If you need more information on claiming Elterngeld in Germany, fell free to contact us or let us know below.