Germany is a social state with family oriented laws. Parents can have up to 3 years of parental leave (Elternzeit) and up to 14 months of PAID parental leave (Elterngeld). The months can be split flexibly between the parents but one parent (usually the mom) can't take more than 12 paid months. To maximize the family income, dads in Germany usually take 2 full months or 4 months while working part time (ElterngeldPlus) but this trend is starting to change and dads are taking more time off. You should get in touch with your HR department at least 7 weeks beforehand. Once you notified your employer, you gain a special protection from being fired (kündigungsschutz) even during your trial period (Probezeit). There are three types of Elterngeld:
As a parent, you can receive Elterngeld under the following conditions:
You can get Elterngeld:
Depending on your income, you can receive:
Please note: There is no entitlement to Elterngeld if the parent has earned more than 250,000€ in the calendar year preceding the birth of the child (or if the total income for both parents exceeds 500,000€). (Update: starting 01.01.2021 the maximum family income will be reduced to 300,000€). If you have more than one child, you can receive supplements, for example for twins or older siblings. You can also receive the minimum amount of 300€ Basiselterngeld or 150€ ElterngeldPlus even if you previously had no income. The ElterngeldPlus is calculated in the same way as the Basiselterngeld. However, the amount of ElterngeldPlus is limited to half of what you would theoretically receive as Basiselterngeld if you had no income after the birth. You can receive ElterngeldPlus for twice as long as Basiselterngeld though. ElterngeldPlus can be particularly worthwhile if you have income after the birth - for example, when you work part-time. In this case, the ElterngeldPlus may be just as high as the Basiselterngeld with income. What's Partnerschaftsbonus? As a partnership bonus, you and the other parent (or single parent only) can each receive 4 additional months with ElterngeldPlus. This is only possible in 4 consecutive months. The condition is that both of you work part-time during this time, for a minimum of 25 and a maximum of 30 hours per week (Update: starting 01.01.2021 the max weekly hours will be extended to 32). It is not necessary for you to work exactly 25 to 30 hours in each individual week. The decisive factor is how many hours per week you work on average per month. You can also receive the partnership bonus if you raise your child separately. You can use the partnership bonus before, between or after the remaining Elterngeld months. You can use it even if you otherwise only receive basic parental benefit. Please note: If you receive the partnership bonus, but cannot meet the requirements for it, then any amounts paid must be reclaimed. Even if only one of the parents does not meet the requirements, both will lose the partnership bonus! How much exactly you can get? You can check how much money you can get using the Elterngeldrechner. How do I apply for Elterngeld? With ElterngeldDigital you can fill out your application for Elterngeld online if you live in Berlin, Bremen, Hamburg, Rhineland-Palatinate, Saxony or Thuringia. The expansion of ElterngeldDigital to other federal states is planned. You still need to print out the application and submit or mail your application to your Elterngeld office (Elterngelddstelle) in your area (Germany is still behind in full digital services). Extra Tips Never worked in Germany? You could still get the maximum Elterngeld as if you worked in Germany. Find out how in the video below ;-) New Changes coming in 2021 Learn more about the changes here. CategoriesAll Family Finance SELF DEVELOPMENT SHOPPING Archives October 2020 Related articlesChild benefits are good but can be improved in Germany. There are ongoing debates about reforms. Children registered in Germany have the right to monthly payments (Kindergeld) from the state providing that they are not already receiving similar benefits from another country. That's regardless of nationality and income. Payments vary slightly depending on how many children one already have (see picture above). Payments normally stop when the child reaches 18 yo unless when s/he is unemployed (up to 21 yo) or when s/he is still in education/training (up to 25 yo). Disabled children receive payments for life. The parents must apply within 3 months after child birth to not lose any payments. The application can be easily prepared online (check out the links below). If the income is not sufficient for the whole family, parents can receive a child supplement of 185€ per child (Kinderzuschlag) in addition to Kindergeld. However, the application for the child supplement must be submitted separately to the family insurance fund (Familienkasse). As a rule, you will receive a child supplement for 6 months. If the period of approval has expired, you must apply for a new child supplement. There are some conditions to be eligible to such benefit:
The application can be easily prepared online (check out the links below). To provide relief to families & stimulate the economy after the Corona crisis, there is a one-time payment (kinderbonus) of 300€ per child to be paid with kindergeld in Sep & Oct 2020. You would automatically get it if your child to receive Kindergeld in Sep 2020, no need to apply for it ;-) Baukindergeld is another benefit for family with children in Germany but unlike Kindergeld, it's not for everyone! The family income must not exceed the limits which vary depending on how many kids in the family. There is an easy check list to see if you are eligible (see links below). The limits are easy to calculate. It's 75K + 15K per child < 18 yo. The family has to either sign a contract for the new residence or get an approval for building a house by the end of 2020. (Update: deadline extended until 31.03.2021, learn more here). Within 6 months of moving into the new place, an application for the baukindergeld must be submitted. The application must be submitted before 31.12.2023. Once approved, parents can receive 1,200€ per child per year over 10 years. Keep in mind that the funds are limited and can be gone even before the deadline, so you better act fast! Check out the video below for more tips ;-) Here are useful links that are referred to in the video below: CategoriesAll Family Finance Health SELF DEVELOPMENT SHOPPING Archives January 2021 Related articlesLike other countries, new babys and moms in Germany can get many free gifts from several stores, YaY! We were blessed last year to have our first and only daughter. So, we got many gifts and discounts from Rossmann, dm, and more. You just need to register your child, sometimes even before birth and get cute gifts for your little one. Both parents can actually register the same child so you can get two of everything ;-) Usually you can register up to 3 kids. Check out the video below to learn more. CategoriesAll Family Finance SELF DEVELOPMENT SHOPPING Archives October 2020 Related articles |