Parental Allowance Recipients Drop in Germany: A Closer Look at the Decline
- Decline in individuals claiming parental benefits observed
It's been reported that approximately 1.67 million parents in Germany collected parental allowance in the past year, marking a 5.4% decrease compared to the previous year. Let's dive into the details of this decline and peek into the increasing popularity of Parental Allowance Plus.
Parental Allowance on the Decline
Over the past three years, the number of parents receiving parental allowance has fallen, with a hefty 10.6% decrease seen in 2024 compared to 2021. Interestingly, the number of births has also seen a dip, down by approximately 15%, during the same period.
This cash benefit is provided to support parents who stay at home to care for their newborns.
Parental Allowance Plus Gaining Ground
While the traditional parental allowance sees a decrease, there's an upward trend for Parental Allowance Plus. Statisticians predict that 613,000 parental allowance recipients will take advantage of Parental Allowance Plus in 2024, making up 36.7% of eligible parents. If you're unaware, Parental Allowance Plus is a lower-rate but longer-term version of the parental allowance, resulting in the same total amount.
Differences Among Fathers Across States
The proportion of fathers among parental allowance recipients slipped slightly in 2024, from 26.2% the previous year, to 25.8%. This marks the first significant decrease since 2015, when it stood at just 20.9%.
The leader in the federal state comparison is Saxony, with a father proportion of 29.5%, followed by Baden-Württemberg (28.1%) and Bavaria (27.8%). Meanwhile, the Saarland maintains the lowest father proportion at 20.6%.
The average planned duration of parental allowance was steady at 14.8 months for women but shorter for men at 3.8 months.
Changes to Parental Allowance in 2025
Beginning April 2025, the parental allowance will only be available for single parents and couples with a taxable annual income of less than 175,000 euros. The new limit takes effect for children born on or after April 1, 2025, following a series of reductions since April 2024, when the limit was 250,000 euros.
Given these financial adjustments, there's been a discussion about the potential for eliminating the parental allowance entirely. For instance, Landkreis Association President Achim Brötel and Clemens Fuest from the ifo Institute have advocated for its cancellation.
- Parental Allowance
- Fathers
- Mothers
- Birth
- Parental Allowance Plus
- Germany
- Wiesbaden
- Federal Statistical Office
- Saxony
- Baden-Württemberg
- Bavaria
- Saarland
- The decline in parental allowance recipients in Germany, as reported by the Federal Statistical Office, coincides with a decreasing number of births over the past few years, with a 15% drop observed between 2021 and 2024.
- Interestingly, while the traditional parental allowance is experiencing a decrease, Parental Allowance Plus is gaining popularity, with predictions of 613,000 parental allowance recipients taking advantage of it in 2024.
- The city of Wiesbaden in Germany has seen a lower percentage of fathers among parental allowance recipients compared to other federal states, with data showing a father proportion of 25.8% in 2024.
