
Parental allowance and parental leave reform: What's new since 01.09.2021?
The reform of the Federal Parental Allowance and Parental Leave Act is intended to strengthen families and help them achieve an even better balance between family life and work. The new regulations apply to parents whose children are born from September 1, 2021.
This article was updated on 04.04.2024.
Maximum working hours while receiving parental allowance
Permitted working hours will be increased from 30 to 32 hours per week.
Parents of premature babies are better off
If the baby is born at least 6 weeks before the due date, parents receive an additional month of parental allowance, a so-called premature baby month.
- 2 months of parental allowance if the child is born 8 weeks early,
- 3 months of parental allowance for a premature birth of 12 weeks and
- 4 additional months of parental allowance 16 weeks before the actual delivery date
More part-time options - partnership bonus months become more attractive
The partnership bonus is extended to 24-32 hours per week (instead of 25-30).
- A partnership month corresponds to a parental allowance plus month min. 150 € and max. 900 €
- Parallel receipt of parental allowance by both parents in 2 to 4 consecutive months of life
Income replacement benefits
Income replacement benefits (short-time working allowance/sickness benefit) are not offset against the parental allowance. This means that the amount of parental allowance is not reduced.
Parental allowance income limit at a glance
For births from September 1, 2021 up to and including March 31, 2024, the income limit for couples is 300,000 euros annual income, for single parents 250,000 euros. With the 2024 parental allowance reform, the income limit for entitlement to parental allowance has been lowered again.
The new income limit applies to couples and single parents:
- For births from April 1, 2024 at 200,000 euros taxable income.
- For births from April 1, 2025 at 175,000 euros taxable income.
If the income limit is exceeded, parents are no longer entitled to parental allowance.