German Family Minister Proposes Stricter Parental Allowance Rules, Requiring Equal Leave for Fathers

Germany's Family Minister Karin Prien is reportedly planning to introduce stricter conditions for receiving parental allowance (Elterngeld), aiming to boost father involvement in childcare and achieve government savings.

Under the proposed changes, couples would only receive the full parental allowance if fathers take an equal share of the leave. Currently, parents can claim the allowance for 14 months, with a minimum of two months mandated for one parent, typically the father. The new plan suggests a mandatory seven-month leave for each parent.

This initiative is part of a broader government effort to cut spending, with Finance Minister Lars Klingbeil calling on all ministries to save one percent of their budgets for the 2027 fiscal year. Prien's ministry is expected to reduce Elterngeld expenditures by 500 million euros. The government views this reform not just as a cost-saving measure but also as a step towards greater gender equality in parental responsibilities.

The current Elterngeld rules allow for 65 percent of net income, with a minimum of 300 euros and a maximum of 1,800 euros per month. The allowance is contingent on taxable income not exceeding 175,000 euros for couples and single parents. Discussions regarding these savings measures are ongoing within the coalition, with potential adjustments expected before a coalition committee meeting on July 1.

While the primary goal appears to be fiscal consolidation, the government also frames the Elterngeld reform as a contribution to equality, similar to previous adjustments in insurance policies.