High-income parents face a change in parental allowance eligibility
Switching things up in the parental allowance world, high-income families no longer qualify for this benefit starting next year. The German parliament decided to reduce the income threshold on Friday. Families can now receive parental allowance up to an annual taxable income of 175,000 euros if they decide to take a leave of absence from work for their child. For single parents, the limit remains at 150,000 euros.
A glance at the changes
The fine print includes couples still being able to enjoy up to 14 months of parental leave as a team, but living it up together with parental allowance during the same period will only be possible for one month within the first year of the child's life. Exceptions apply to multiple births and premature births.
Unpacking the hype
The new income limits for parents to qualify for parental allowance (Elterngeld) in Germany are:
- Couples: The limit of 175,000 euros annually will disqualify couples from receiving Elterngeld as of April 1, 2025.
- Single Parents: The threshold for single parents remains at 150,000 euros.
These adjustments were part of the regulations passed by the German government in December 2023 and are set to go into effect on April 1, 2025.
On a different note...
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*Source:* [*www.ntv.de*](https://www.ntv.de/)
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