Parental allowance debate: Income boundaries lowers-what does that mean for families?

Parental allowance debate: Income boundaries lowers-what does that mean for families?

From April 1, 2025, the income limit for parental allowance in Germany will drop to 175,000 euros. This reduction scores many parents, because over 300,000 couples could lose their claim to this financial support. So far, the income limit was still 200,000 euros, which meant that many families were able to compensate for at least part of their income at the birth of a child. Experts from the Cologne Institute of German Economy (IW) criticize this measure as problematic for family political, since parental allowance is intended as a financial compensation for loss of income after the birth of a child. reports that this innovation affects couples and single parents who exceed the amount.

The lowering of the income limit will have drastic consequences for many parents. So far, 1.4 million women and 482,000 men have received parental allowance, although the proportion of men has increased steadily in recent years. This often happens because the proportion of men on parental leave increases with their income. Nevertheless, the new regulation could put families under pressure, especially with the existing increase in living costs. It is believed that inflation in particular could push more couples into the less income category, which would also stress those affected. Tagesschau emphasizes that around 60,000 families could be affected by this change, which means around five percent of parental allowance in 2020.

In addition, resistance has grew against the planned change in the last few weeks. A petition entitled "No to deletion" has collected over 300,000 signatures, which indicates the broad rejection in parts of the population. Critics warn that the reduction in the income limit could endanger the financial independence of parents with lower income and that there is an urgent need for reform. Many require an increase in the minimum and maximum amounts as well as an expansion of the partner months.

social support and opinions

The administration of Federal Minister of Family Affairs Lisa Paus from the Greens faces great resistance, at the same time a survey shows that 63 percent of the respondents consider the lowering of the income limit correct. 64 percent of the potentially affected respondents support this new regulation, while 78 percent for exceptional regulations for parents of multilings, premature and disabled children advocate. These figures indicate that there is a certain degree of social support for the reform, but the concern for the financial burden for certain families remains. The Federal Ministry for Family, Seniors, Women and Youth also suggests that to promote a partnership of the care work and support families accordingly.