2027 Parental Leave Reform: What Might Change for Families
For births starting in November 2027, there could be some changes to parental benefits. In July 2026, Federal Minister for Family Affairs Karin Prien (CDU) introduced a bill for a new model that would shorten the benefit period, slightly increase the monthly rates, and revise the rules governing how the benefits are divided between the parents.
In this article, pme Parenting Counseling provides an overview of the 2027 parental allowance reform:
- What are the current plans?
- What could these changes mean for families and businesses?
The planned reform of parental leave benefits in 2027 has not yet been finalized. We are monitoring the legislative process and will update this post as soon as new, reliable information becomes available.
What might change regarding parental allowance starting in 2027:
Background on the 2027 Parental Allowance Reform
Due to a funding shortfall in the 2027 federal budget amounting to billions, the Ministry of Family Affairs must cut 500 million euros—with parental allowance being the largest expenditure item in the budget. At the same time, the ministry points to the goal agreed upon in the coalition agreement to promote greater partnership and greater involvement of fathers.
How much is the current parental allowance?
Parental allowance was introduced in 2007 to help parents balance family and work life. To date, the government has been paying between 300 and 1,800 euros per parent per month upon application, based on 65 percent of the lost net income.
Families with a combined annual taxable income of up to 175,000 euros are eligible—this applies to both couples and single parents.
According to the Federal Statistical Office, approximately 1.61 million people received parental benefits in 2025, including 1.19 million women and 417,000 men. The proportion of fathers was most recently 25.9 percent.
Our parental leave counselors provide information on legal requirements and help you plan your parental leave, as well as apply for parental benefits and financial assistance.
Tip: Use our form service or the parent counseling hotline at 0800-801007006 to submit your application for parental allowance and child benefit quickly and securely. This offer is available to employees of our contract partners.
Our pme Parenting Counseling service is personalized and confidential: We're here for you online, by phone, and in person.
At a Glance: What Might Change with the 2027 Parental Allowance Reform?
The table shows relevant criteria that may change when receiving parental allowance starting in 2027.
Mobile view? Just drag the table to make it bigger.
New Allocation Model
The plan is to use the so-called 3-6-3 model for allocating parental allowance:
- Three months would be set aside for each parent and could not be transferred to the other,
- The remaining six months could be divided flexibly between the two.
Fathers' minimum participation would thus increase from the current two months to three months in the future if they are to take full advantage of the benefit period.
If one parent decides not to receive parental allowance, the other parent would be eligible for a maximum of 9 months of basic parental allowance .
Shorter benefit period
Currently, parents can spread out their basic parental allowance over 14 months if both parents each contribute at least two months of care.
According to the current draft, starting in 2027 , the basic parental allowance will be available for a maximum of 12 months .
Parental Benefits for Single Parents
Starting in 2027, single parents would be able to receive the basic parental allowance for up to 12 months —instead of the current 14 months.
Simultaneous Use
A rule that is likely to please many couples would be reinstated: Both parents would once again be allowed to receive parental benefits at the same time on a flexible basis.
Increase in Parental Allowance Amounts
An increase is planned for the following amounts:
- from a minimum of 300 to 330 euros,
- from a maximum of 1,800 to 1,900 euros per month.
For middle-income families, however, this is unlikely to make much of a difference:
- The new cap would apply only to those with a net income of around 2,770 euros or more.
- Anyone whose benefits fall below that threshold will see virtually no benefit from the increase—and would also have to expect a two-month reduction in the benefit period.
Parental Allowance Plus and Partnership Bonus
- The maximum duration of Parental Allowance Plus would be reduced from 28 to 24 months.
- The current partnership bonus (an additional 2 to 4 months of Parental Allowance Plus) is to be eliminated entirely.
Which parental leave regulations remained unchanged?
Subsidy for Multiple Births Remains Unchanged
According to the current draft of the 2027 parental allowance reform, the rules regarding the birth of twins or multiple births would remain unchanged. This means the following would continue to apply:
Parents of multiple births receive parental benefits only once, but they do receive the multiple-birth supplement:
- of 300 euros per month while receiving the basic parental allowance
- and 150 euros while receiving Parental Allowance Plus
for the second and each additional child.
Additional months for premature births remain unchanged
For children born well before their estimated due date, parents would be able to receive parental benefits for additional months . Starting in 2027, this would mean:
- 6 weeks early – PLUS 1 month of parental leave
- 8 weeks early – PLUS 2 months of parental leave benefits
- 12 weeks early – PLUS 3 months of parental leave
- 16 weeks early – PLUS 4 months of parental leave benefits
What impact could the parental allowance reform have on families?
Widening of the Care Gap
If joint parental allowance benefits end after 12 months instead of 14 in the future, families could face an even longer gap in childcare. childcare center — Childcare spots for children under three are scarce in many regions, which could result in a longer period between the end of parental allowance benefits and the availability of a reliable childcare spot.
Possible Effects on Employment
A shorter period of parental leave may lead parents to return to work earlier for financial reasons. At the same time, the proportion of part-time workers could increase —possibly for both parents, in order to ensure childcare. In the long term, this could have an impact on their employment histories and, consequently, on their pension entitlements.
How Companies Can Support Their Employees
Employers are also advised to actively engage with the potential parental leave reform. This is because companies can help employees find ways to balance family and work .
Specifically, the following is recommended for companies and HR managers:
- Discuss parental leave plans with employees early on
- Organize appropriate substitute arrangements
- Offer flexible work schedules that make it easier for partners to share childcare responsibilities
- Provide or arrange reliable childcare options to bridge the gap after parental leave ends.
The pme Familienservice is one of the largest providers of EAP (Employee Assistance Programs) counseling and family services in the German-speaking world.
For over 30 years, we have been helping employees and executives balance their professional and personal lives—in complete confidence and 365 days a year.
With our “Parents & Children” program, we bring together our extensive counseling and referral services for families and create synergies among our comprehensive EAP offerings.
