A Game-Changer for New Parents in Germany?

A Game-Changer for New Parents in Germany?

The SPD is aiming to reform the parental allowance after the Bundestag election, with parents receiving full parental allowance for up to 18 months instead of the current 14 months. This is according to a concept paper that the Funke-Mediengruppe newspapers (Friday editions) reported on. The party plans to introduce a “6+6+6” model and thus “take into account the real life of millions of working parents better”, as the paper states.

Currently, the parental allowance can be received in full for up to 14 months, as long as both parents take at least two months of parental leave. However, the SPD considers this “too short in the daily life of many families”, as, for example, a kindergarten place may not be available by the child’s first birthday or a child may need more time to settle in.

According to the SPD’s proposal, each parent should have a non-transferable entitlement to six months of parental allowance, and the parents can then distribute the remaining six months freely among themselves, with a total of up to 18 months of parental allowance available. This is intended to also strengthen the partnership in the distribution of care and working responsibilities, particularly of women. Up to three months, partners can also go on parental leave at the same time, which is currently only possible for one month.

The parental allowance is also planned to be higher for part of this time. Currently, parents receive a regular 65% of the lost net income as a wage replacement. In the six freely distributable months, this rate is to be increased to 80% if all months are taken by both parents. The basic amount of €300 per month, as well as the upper limit of €1,800 per month, which have not been adjusted since 2007, are also to be increased.

The government coalition had already agreed in its coalition agreement to introduce an additional partner month in the parental allowance and to adjust the minimum and maximum amounts. However, this has never come into effect.