Child benefit for master's and bachelor's degree - child benefit payment dates

In Germany the diploma courses were abolished some time ago and replaced by the master’s and bachelor’s degree. The question now arises for all parents as to whether child benefit will continue to be paid for a master’s degree. It depends on whether that Master’s degree is regarded as a first degree or a subsequent second degree. There was a decision on this topic recently >Bachelor’s degree compiled for you.

Child benefit for first and second degree

The Child benefit entitlement from Parents can extend beyond the age of 18 to the age of 25 if the child completes a course of study during this time. However, a distinction must always be made between first degree and second degree. Since the last change in the law, no further conditions have to be met for receiving child benefit for a first degree. The child benefit is paid to the parents until they reach the age limit, regardless of whether the child works during the course and how much they earn. In contrast to the first degree, the child benefit payment is subject to additional conditions. The child may not pursue gainful employment for more than 20 hours a week during the second degree. Otherwise, the child benefit payment will be canceled completely. In contrast, the amount of income is irrelevant to the child benefit entitlement.

Exceptions for the second degree

There are, however, a few exceptions for second-degree students that allow parents to continue to receive child benefit even though their children exceed the 20 hour limit for weekly hours. For example, marginal employment, irrespective of the weekly working hours, is generally harmless for child benefit entitlement in the second degree. The same applies to all activities within the framework of a training service relationship, such as the legal traineeship for a teaching degree. Another exception rule is especially important for students who want to use their free time during the semester break to earn some extra money. Child allowance can continue to be drawn during the second degree if the student works more than 20 hours a week for a temporary period of no more than two months. However, a prerequisite for continued entitlement to child benefit is that the student is responsible for the whole year seen working an average of no more than 20 hours a week.

Master’s degree as first degree or second degree?

If the child starts a bachelor’s program after graduating from high school and has not previously completed any training or a course of study, it is a first degree. For the parents, this means that they continue to have children from the state regardless of how many hours the student child has to work each week.
However, the situation is a bit more complicated with a master’s degree than with a bachelor’s degree. The crucial question for receiving child benefit for a master’s degree is whether it should be regarded as a first degree or a second degree. For a long time, the financial administration assumed that a master’s degree should basically be classified as a second degree. As a result, the parents only received child benefit if their child did not exceed the limit of 20 working hours per week.

Consecutive master’s degree as part of the first degree

However, some of the courts in Germany now have a different legal opinion. According to the current case law of the Federal Fiscal Court, a master’s degree is still part of the first degree and therefore not an independent second degree if the master’s degree is closely related to the previous bachelor’s degree in a factual and temporal context as a so-called consecutive master’s program, builds on the content of the bachelor’s program. This then results in the parents continued child benefit get paid, even if their child has more than 20 hours of professional activity in addition to studying. For example, the Federal Fiscal Court recently decided (judgment of September 3, 2015, ref.VI R 9/15, published on November 18, 2015) in favor of a mother that her son, who after completing his bachelor’s degree in business mathematics, was still studying for a master’s degree started in this course, was still in a first degree. As a result, the mother was still entitled to child benefit, even though her son worked more than 20 hours a week in addition to studying.