Corona aid and more flexible parental allowance are being extended, child benefit and minimum wage are rising.
There are various changes for the new year. Among other things, the coronavirus aid measures for families and the flexibilization of parental allowance will be extended.
In order to cushion the impact of the coronavirus pandemic on families, the federal government adopted various measures last year, initially for a limited period until the end of 2020. These will now be continued. Among other things, this concerns the entitlement to compensation if parents are unable to work due to school and daycare closures. The prerequisite is that the child has not yet reached the age of 12 or is dependent on help due to a disability. In addition, there must be no other reasonable care options.
If these conditions are met, parents and single parents receive compensation amounting to 67% of the loss of earnings incurred (maximum €2,016) for a maximum of 10 weeks per working parent or 20 weeks for single parents. This maximum period does not have to be taken in one go, but can be spread over several months.
Parents who work in system-relevant professions can postpone their parental allowance months and take them after the child's 14th month of life, at the latest by June 2021.
Until December 31, 2021, the rule that months with lower income can be excluded from the calculation of parental allowance has been extended. This applies to expectant parents who have lost income due to the coronavirus pandemic because they are working reduced hours or are on leave.
Child benefit will be increased by €15 per child as of January 1, 2021. This means that parents will receive €219 for the first two children, €225 for the third child and €250 from the fourth child onwards. The child supplement for families with low incomes will be increased by 20 euros to up to 205 euros per month and child in January.
The child allowance will rise to €5,460 from January 2021, €2,730 per parent. The allowance for care, education and training needs will rise to €2,928, €1,464 per parent.
Interesting for families who employ a childcare worker or domestic help in their household as well as for employees in private households: the minimum wage will increase gradually until July 1, 2022. On January 1, it will be increased from 9.35 to 9.50 euros, and on July 1, 2021 to 9.60 euros.
The basic pension will also come into force on January 1, 2021. The aim is to recognize people's lifetime achievements more fairly and save low-income earners from having to go to the social welfare office.
Anyone who has worked for at least 33 years, raised children and cared for relatives but earned little is entitled to a basic pension. The rule of thumb is an average income of no more than 80 percent of average earnings per year. Around 1.3 million people will benefit from this, including many women and people in eastern Germany. The improvements will also benefit pensioners.
Source: BMFSFJ