Germany proposes cutting parental leave payments to 12 months

Germany's Family Minister Karin Prien has proposed a significant overhaul of the country's parental leave payment system, known as Elterngeld. A draft law suggests reducing the maximum payment period from 14 to 12 months. This change aims to address budget constraints, as Prien's ministry is tasked with saving 500 million euros next year.

The proposed legislation introduces new conditions for receiving the full 12 months of Elterngeld. Under the draft, both parents would be required to take at least three months of leave each. An additional six months could be flexibly divided between parents. Single parents would remain eligible for up to twelve months of full Elterngeld.

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Three months are reserved for each parent in the future. Another six months can be flexibly divided between the parents.

While the duration of payments may decrease, the draft law also includes adjustments to the minimum and maximum benefit amounts. The minimum Elterngeld is proposed to increase from 300 euros to 330 euros per month, and the maximum amount would rise from 1,800 euros to 1,900 euros per month. These adjustments aim to balance the reduced payment period with potentially higher individual monthly benefits.

The proposal also touches upon the Maternity Protection Act, limiting employment bans after childbirth to twelve months. The current Elterngeld system, in place since 2007, provides payments for up to 14 months if each parent takes at least two months of leave. The income threshold for eligibility for births after April 1, 2025, is set at 175,000 euros per year. The federal government has allocated approximately 7.5 billion euros for Elterngeld payments this year.

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With the new regulation, employment bans based on working hours will be restricted to twelve months after childbirth.