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Germany’s Proposal to Reduce Parental Allowance Duration
Federal Family Minister Karin Prien has proposed a reform to Germany’s parental allowance (Elterngeld), aiming to reduce the maximum benefit period from 14 months to 12 months. The planned change would require both mothers and fathers to take a minimum of three months of parental leave each to qualify for the full 12 months of Elterngeld. This proposal is part of a broader effort to encourage greater paternal involvement in early childcare.
Alongside shortening the duration, the monthly Elterngeld payments are set to be increased slightly. The minimum monthly payment would rise from 300 to 330 euros, while the maximum would increase from 1,800 to 1,900 euros, according to a draft legislation currently undergoing interdepartmental review.[Source 1][Source 4][Source 6]
Financial and Policy Context
The proposed reform is expected to save approximately 500 million euros. The 2027 federal budget allocates around 7.5 billion euros toward parental allowance benefits. Moreover, the planned measures reflect priorities outlined in the 2025 coalition agreement, emphasizing enhanced responsibility for fathers in child-rearing.
The reform targets a more balanced sharing of parental leave between mothers and fathers by making at least three months of leave mandatory for both parents to receive the full 12-month benefit. Failure to meet this requirement would likely result in a reduced total parental allowance duration.[Source 4][Source 6]
Implications for Expats, International Students, and Foreign Workers
Expats living and working in Germany who are expecting children or currently raising young children will be directly affected by the changes to Elterngeld. This reform means foreign parents will need to plan parental leave carefully to meet the new three-month minimum leave requirement each for both mother and father to qualify for the entire benefit period.
The slight increase in monthly payments may partially offset the shorter payment period, but families needing the allowance for more than a year will see a reduction in total financial support. Parents should be aware of these new conditions when applying for parental allowance after the reform takes effect.
International students with children or foreign workers on temporary or permanent contracts should also monitor this proposed legislation, as it could affect their family budgeting and leave planning. Since the draft is still in the consent phase and no fixed implementation date has been announced, parents should stay informed about further legislative developments to ensure compliance and optimize their entitlements.[Source 1][Source 6]
For more detailed updates, the original announcement can be found at Tagesschau: Prien will Elterngeld auf zwölf Monate beschränken [Source 1].
