The German government is not going ahead with plans to cut parental allowance from 14 to 12 months, and rates are set to increase. Here’s what we know about the latest draft of the reform.
A document from the Ministry of Family Affairs, which was obtained by broadcaster ARD, stated that parental allowance or Elterngeld would continue to be paid to new parents for a duration of 14 months.
Previously, Education and Family Affairs Minister Karin Prien, of the conservative Christian Democrats (CDU), had announced that the maximum payment period would be reduced to 12 months as part of a major reform.
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The government is still planning some changes and wants to encourage parents to share childcare more equally.
Later on Wednesday, Prien told DPA that the coalition government had succeeded in finding a good solution.
“We have agreed to further develop the structure of the parental allowance and to adapt it better to the realities of life for young families today,” she said.
“In this way, we are ensuring that starting a family remains an attractive prospect for young people in Germany in the future.”
Here’s a look at the revised draft law from the ministry:
A 4-6-4 model: Parents will continue to receive parental allowance for up to 14 months in total. The new arrangement will see four months designated to the mother and four for the father, whilst they can freely divide the remaining six months between themselves.
Under the plans, both parents can receive parental allowance simultaneously without restriction. That means they can take the first four months together, for instance. Single parents will receive up to 14 months of support.
Higher income replacement rate: During the four reserved months, 80 percent of the parent’s net income will be paid instead of the previous 65 percent; in all other months, the rate will be reduced to 50 percent.
Minimum and maximum rates: As originally planned, the ministry is set to raise the minimum amount of Elterngeld support from €300 to €330 per month, and the maximum amount from €1,800 to €1,900.
Sibling bonus: A so-called “sibling bonus” or Geschwisterbonus – a supplement to the parental allowance for families with other children living in the household – is to be offered to families for a longer period of time.
Prien said: “We are deliberately sending a message to young families: we are here to support you.”
What is Elterngeld?
Parental allowance was introduced in 2007 to improve work-life balance and offer support. It is intended to provide financial security to mothers and fathers during Elternzeit (parental leave) after the birth of a child.
In 2026, the state supports parents with a monthly payment ranging from €300 to a maximum of €1,800 per month – depending on net income before the child was born.
Since April 2025 the income threshold has been set at €175,000, which means couples and single parents with a taxable annual income above this threshold are not eligible for the benefit.
Parents can receive Elterngeld for up to 14 months, provided both parents each take at least two months of parental leave as things currently stand.
Under the optional ElterngeldPlus scheme, payments can be spread over a longer period, although the monthly amount is lower.
A total of 1.61 million people received parental allowance in 2025, including 1.19 million women and 417,000 men, according to official figures.
The reforms, which are due to come into force later in 2027, are part of a savings drive to plug funding shortfalls.
Prien said the draft law “also takes our budget into account, so as not to place an increasing burden on taxpayers every year. That, too, is part of our responsibility”.
READ ALSO: How new parents in Germany can stretch out their Elterngeld payments
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