New regulations for parental allowance and parental leave

New regulations for parents whose children are born on or after September 1, 2021

The reform of the Federal Parental Allowance and Parental Leave Act is intended to strengthen families and help them achieve an even better work-life balance. The new regulations apply to parents whose children are born from September 1, 2021.

Maximum working hours while receiving parental allowance

The permitted working hours will be increased from 30 to 32 hours per week.

Parents of babies are better off

Parents who give birth at least 6 weeks before the due date receive an additional month of parental allowance, known as a "premature month".

More part-time options � Partnership bonus months become more attractive

The partnership bonus will be extended to 24 to 32 hours per week (instead of 25 to 30).

Income replacement benefits

Income replacement benefits (short-time working allowance, sick pay) are not offset against parental allowance. This means that the amount of parental allowance is not reduced.

Income limit for couples decreases

Until now, the income limit for entitlement to parental allowance for jointly assessed parents was 500,000 euros annual income. In future, couples with a top income of more than 300,000 euros per year will no longer be entitled to parental allowance. For single parents, the limit remains at 250,000 euros.